Introduction
The following guidance is for Lehigh University faculty and staff interested in founding or working for a startup.
In general, if you founded or work for a startup, but the startup is not Related to your research and/or sponsored programs in any way, a financial conflict of interest management (fCOI) management plan is not required for this relationship.
If you have founded or work for a startup, speak with your department chair to ensure that you are in compliance with department-specific requirements and with the Rules and Procedures of the Faculty. Please review and ensure you meet the requirements of the institutional Conflict of Interest Policy. For proposed or existing externally sponsored programs, carefully review proposal requirements, award terms and conditions, and progress report requirements to determine if your startup activity needs to be disclosed to the sponsors.
If you intend for your startup to engage in Lehigh University research, you must consult with the Office of Research Integrity (ORI) in advance. The specific details of your research project and startup circumstances will determine next steps.
This guidance provides a general overview of common issues that can arise and best practices for handling them. Not all of these items apply to every startup situation, and individual departments or colleges may have their own requirements that must also be satisfied. If there is a conflict between ORI’s requirements and your department's, ORI will work with you and your Department Chair to resolve any issues.
Collaboration Between a Faculty Member’s Startup and Lehigh University
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Your startup may only provide funding to your Lehigh University lab or department with the advanced approval of the Conflict of Interest Review Committee (CIRC) and your Department Chair.
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If a research project is a collaborative effort between Lehigh University and your startup (e.g., an SBIR) you may only provide effort for only one side of the project. For example, if you are the Lehigh PI, you may not also provide effort or be paid for the startup’s scope of work on that project.
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You may need to provide justification for why part of the work must be done by an outside collaborator (i.e. the startup) rather than by the university, and why your startup in particular is the most appropriate partner. This may mean a competitive bid process and/or written justification about your startup’s special expertise, equipment, intellectual property, etc.
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Clear and detailed scopes of work and deliverables should be developed with care to ensure each party has its own distinct role in the work. Scopes of work and deliverables may need to be reviewed by the CIRC.
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Decisions about whether the university should be the prime recipient or the subcontractor in the collaboration involves many factors beyond just conflict of interest management. Either arrangement can usually be managed with a conflict of interest management plan. If your startup is the subcontractor, your management plan will need to involve an element of financial oversight so that you do not have sole approval over payments to the startup.
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SBIRs and STTRs are a special case of collaboration. You may involve your own startup in such a collaboration, but a CIRC approved fCOI management plan will be required.
Students/Advisees
Opportunities may arise for undergraduate or graduate students from your research team to also work with your startup, for example, as interns. Special care must be taken in these cases to ensure that students are not pressured into working for the startup instead of other options they might prefer, that their intellectual property is protected, and that their work for the startup does not impact their academic progress. Some departments may have additional special requirements for students involved in outside work. Consult both ORI and your Department Chair prior to engaging students/advisees in any work for your startup.
Licensing
Licensing questions are generally handled by the Office of Technology Transfer. If you have an fCOI due to your ownership of a startup, ORI may also advise. Licensing questions are project-specific, and an Express Startup License Agreement may be available, which is intended to be an efficient and streamlined contracting process. The Express License terms are set upfront and contain an equity position in the startup for Lehigh. Faculty may take a personal equity stake in the startup as a founder or advisor.
University Resources
University resources, including space and equipment may not be used for the startup’s scope of work on a collaboration unless and until there is a formal written agreement in place between your startup and the university. Lehigh University resources that are available on a paid basis to other outside companies may be used by your startup with Lehigh’s permission, at the standard rate that would be available to other companies.
Competition with the University
As described in section 2.5 in the Rules and Procedures of the Faculty, as well as the University Conflict of Interest policy, your startup may not engage in direct competition with the University. This means that you cannot divert opportunities to your startup that would otherwise be available to Lehigh. This is often an easy distinction. For example, your startup may work on projects where it has expertise, intellectual property, equipment, etc. that Lehigh does not, or the startup may do work that is not fundamental research. However, if there are situations where it is less clear what work belongs at Lehigh and what work belongs at the startup, ORI and your Department Chair will advise you.