1. (a) Policy. The department may authorize the licensure of department owned intellectual property. This section prescribes the procedure for obtaining a license.

2. (b) Request. A person may submit a written request for a license to the department's General Services Division. A request must include, but is not limited to:

   1. (1) name of the requestor and if an organization, the name of the organization;
   2. (2) number of copies or licenses requested;
   3. (3) name or description of the intellectual property requested;
   4. (4) the purpose for which the intellectual property will be used;
   5. (5) the plan of distribution and marketing, if applicable;
   6. (6) the term of the license, if applicable; and
   7. (7) a request for waiver of fees, if applicable.

3. (c) Approval. The senior management team member with jurisdiction over the intellectual property will approve the request if he or she determines that the distribution of copies or the granting of a license:

   1. (1) is consistent with Texas Civil Statutes, Article 6673a-4, and Government Code, §2054.115;
   2. (2) will benefit the department; and
   3. (3) does not conflict with department plans or activities.
4. (d) Disapproval. If the department denies the request, it will provide the requestor with a written statement describing the reason for denial.

5. (e) Fees. The department will determine the monetary value of department intellectual property and will set license fees.

   1. (1) Fee schedule. In developing a fee schedule, the department will consider the:

      1. (A) commercial rates for comparable property;
      2. (B) original development cost;
      3. (C) intended use of the property;
      4. (D) private or public status of the requestor; and
      5. (E) primary beneficiary of the license.
   2. (2) Waiver of fee. The department may waive or reduce the amount of fees, royalties, or other monetary or nonmonetary value to be assessed if the executive director or his or her designee determines that such waiver or reduction will further the goals and missions of the department and result in a net benefit to the state.

6. (f) Agreement. If the department approves the copies or license, the requestor must execute a written agreement with the department prior to receiving the copies or the license. The agreement will contain terms and conditions the department deems necessary to protect the department, including, but not limited to:

   1. (1) license term and geographical area;
   2. (2) rights granted, including patent-rights;
   3. (3) description of products utilizing the trademark;
   4. (4) fees or royalties;
   5. (5) inspection of licensee's books and records;
   6. (6) policing of trademark or copyright infringement;
   7. (7) prohibited uses; and
   8. (8) indemnification of the department.
7. (g) Appeal. A requestor may appeal department denial of the license request to the Intellectual Property Committee by submitting a written request for appeal. The decision of the Intellectual Property Committee will be final.

Source Note:The provisions of this §22.22 adopted to be effective November 20, 1997, 22 TexReg 11093.