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9 Legal Issues and Agreements
Pages 63-74

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From page 63...
... This panel will discuss the legal issues related to these various scenarios. The speakers will discuss registration and memo randa of understanding with foreign governments and governmental approvals.
From page 64...
... For example, the faculty working on the research endeavor of the new entity may have to attend board meetings, pay attention to using the correct title, stationery and business cards, and so forth. Typically, it is not worth creating a formal legal entity unless there is a large amount of money involved, a long-term commitment, and a high level of certainty that the relationship
From page 65...
... Many times the foreign government prefers to fund an entity in its own jurisdiction because it is difficult to send money directly to the United States in any significant amount. Sensitivities may arise when the foreign university is to receive significant funding from its government and is then expected to flow a majority of the funding to the U.S.
From page 66...
... The foreign entity would participate in, and could also have appropriate control of, the research endeavor, and would have responsibility for performing administrative duties, employing staff, and ensuring compliance with the jurisdiction's regulatory and other legal requirements. Establishing a foreign campus may involve long-term and very substantial financial obligations.
From page 67...
... This can be a significant administrative undertaking and involve substantial costs for record-keeping, accounting and legal advice and procedures. Where foreign taxation can be avoided without undermining core objectives of the endeavor, it is worth the planning time and effort to avoid the cost.
From page 68...
... In the European Union, there is a prohibition against governments providing what is called "state aid" to entities that would distort their market advantage. If foreign support violates the state aid rules, a clawback provision of EU law may require repayment.
From page 69...
... International programs often require university staff to live and work overseas. These universities should have a fundamental understanding of how foreign employment law applies to them.
From page 70...
... Independent contractor arrangements under which the contractor receives employee-like benefits, such as paid vacation, or under which the contractor must adhere to a personnel manual or similar policies are suspect. To misclassify employees as contractors exposes an institution to host country liabilities such as payment of back taxes and social security withholdings, retroactive local benefits, vacation and holidays, and penalties.
From page 71...
... One issue raised during the discussion following the panel talks was the combination of limitations on F&A cost recovery and the time and expense required to adequately monitor foreign subawards. Is it possible for U.S.
From page 72...
... Therefore, significant lead time is required to actually understand what is required for your institutional clinical personnel to be able to begin treating people or conducting other medical activity. Animal research can also raise complicated issues overseas.
From page 73...
... The Lisbon Treaty of 2009 explicitly mentions science and technology advancement as an objective of the European Union. There are several rationales for the EC to support trans-Atlantic research collaboration, including the imperative of solving global problems and the need to build better networks of researchers and institutions.
From page 74...
... The Consortium Agreement spells out the relationship among the partners, and most of the legal issues are covered there. Some of the terminology used by the EC differs from what is common in the United States.


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