DID HARVARD ABANDON 'ETHIC' FOR DOLLARS?

As university after university joined the patent chase, one academic institution stood out as a bulwark of ethical resolve—that is, until now. The university was Harvard, and even though the school began licensing inventions more than a decade ago, it earned its reputation as a bastion of purity because of landmark decision in 1981. At issue then was a controversial proposal involving molecular biologist Mark Ptashne, whose advances in recombinant DNA techniques were giving rise to new technologies. Rather than merely licensing his developments, Harvard considered helping Ptashne found a new company —a firm in which the university would then maintain a minority interest. The case divided the faculty for months. And in the end, Harvard decided that the plan contained too many pitfalls. In his annual report for the 1979-80 school year, president Derek Bok explained that “in attempting to achieve practical results, the university must not endanger its primary commitment to learning and discovery, for these are the functions that ultimately justify its existence.” Those were stirring words. But three months ago, Harvard stepped down from the moral high ground by making an abrupt about-face on the question. The university announced that it would help form a venture capital partnership, tentatively dubbed Medical Science Partners, to invest in its own research. The plan calls for Harvard to help find six to eight institutions willing to invest a total of $30 million in technologies pioneered almost exclusively at the medical school and its dozen or so affiliated hospitals. Once a technology is developed and licensed, these investors get their money back first. Any remaining royalties are divided as follows: 80% to the main block of partners, 10% to the managing general partner— and 10% to Ion Inc., a Harvard—formed nonprofit group that would plow most of its share back into research. Since announcing the plan, university officials have spent a lot of time insisting that their decision is not in conflict with the guidelines Bok set forth in his 1981 report. Stephen H. Atkinson, director of the Office of Technology Licensing at Harvard Medical School, stresses the total venture pool is tiny compared to the $400 million research base of the medical school and affiliated hospitals—and can hardly be a major force. But more important, he notes, is that Harvard has built-in safeguards to protect its research integrity. Usually venture capitalists will not fund basic research unless they can fully protect new discoveries. But Harvard believed that the policy of keeping publishable results secret in order to maintain a competitive edge would break the university’s long tradition of open discussion and collaboration. So Harvard insisted that businessman Andre Lamotte, who will become the new venture pool’s managing general partner, impose no such restrictions. Says Atkinson. “He’s the only one who is willing to work with us and who accepted our ground rules on day one.” Indeed, Harvard’s contract with Lamotte gives Ion Inc. the power to remove the managing general partner if it considers he has breached academic principles. And, since it won’t have to worry about hashing out involved nondisclosure agreements, the new venture might be able to get discoveries to market faster. Despite such posturing, the partnership is receiving only a lukewarm reception from university marketing gurus like Niels Reimers, director of Stanford’s Office of Technology Licensing. Reimers argues that the venture is ethically acceptable only if Harvard takes a truly passive role. “You begin to have a concern when the university itself puts together the deal,” he says. The New York Times, in an editorial, had an even harsher judgment of the venture—charging that it is the role of companies, not universities, to develop new technologies. “Oscar Wilde could resist everything except temptation,” the editorial stated. “University presidents, it seems, can resist everything except money.” -R.B

DID HARVARD ABANDON 'ETHIC' FOR DOLLARS?

The Scientist Staff

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