Letter from CGS to the CIRM Independent Citizens Oversight Committee

To the Independent Citizens' Oversight Committee of the California Institute for Regenerative Medicine:

We are writing to register our concerns about the intellectual property (IP) policy framework for state-funded stem cell research proposed by a special committee formed by the California Council on Science and Technology (CCST). The issue of intellectual property is one of the most critical issues facing the CIRM. At stake is who will own, profit from, and benefit from any discoveries made using taxpayer funds managed by CIRM.

A detailed IP policy must be in place not only before any grants are issued, but also before any bonds are put on the market. Some observers, including the state bond counsel, have interpreted federal tax law to mean that taxable, rather than tax-exempt bonds, will be necessary if the state receives a portion of royalties from any profitable discoveries - as promised by the Proposition 71 campaign and indicated in its text. Thus, issuing bonds with a pre-determined tax status before clarifying CIRM's IP policy would be premature, and likely to preempt a full discussion of possible...