The product-liability-insurance issue in university licensing agreements

Abstract

As universities become more involved with industry through research and license agreements, and with the change of character of product liability, particularly its becoming a potentially catastrophic event, universities are taking a hard look at product-liability insurance. A brief survey shows universities in three distinct groups in their handling of the issue in their licensing agreements. State schools feel protected and do not generally consider it essential, foundations are more cautious, and private universities are very concerned and require it except in specific cases. Some approaches to the problem are proposed.