New UH regent
queries leaders on
ceded lands

The issue was not addressed
by the recent UH autonomy bill

By Pat Omandam
Star-Bulletin

A new University of Hawaii regent says the UH should tackle what it will do with the ceded lands under its control.

It was one issue not addressed by the much-touted UH autonomy bill, said regent Wayne K. Panoke.

In his first meeting, Panoke told UH administrators yesterday he would be remiss as a native Hawaiian if he didn't point out fears that the UH bill -- pending before Gov. Ben Cayetano -- could lead to UH selling ceded lands at the expense of Hawaiians.

Part of the Manoa campus, the entire UH-Hilo campus, as well as the Mauna Kea observatory sites operated by the UH make up part of the 1.8 million acres of ceded or former crown lands in Hawaii.

The Admissions Act of 1959 requires one-fifth of the revenues generated from ceded lands be used to benefit native Hawaiians.

"Ceded lands are ceded lands. They need to be dealt with," said the Hawaiian studies major. "For years, the university has not dealt with it."

Panoke requested the issue be placed on the board's agenda soon so the university can "correct whatever needs to be corrected."

UH President Kenneth P. Mortimer said up to now he's followed the state's lead on the ceded land issue, but assured Panoke the topic will appear before the UH board "before we sell any land."

Panoke and the rest of the board, including new regent Nainoa Thompson, listened while UH officials outlined the gains and losses during this legislative session. Mortimer called the autonomy legislation, which gives UH broad control over its land, money and people, a turning point.

"What we have achieved . . . is very significant in the history of the University of Hawaii," Mortimer said.

On the downside, UH officials tried to soften the pending 5 percent or $13.5 million cut in its fiscal year 1999 budget by highlighting revenue from intellectual property, such as licenses and patents, through its Office of Technology Transfer and Economic Development.

For example, the UH has received $950,000 for an anti-cancer compound derived from screening marine algae. The university will receive $6.25 million once the drug reaches market, as well as 3 percent royalty in net sales.

UH chemists invented the product, which is called cryptophycins.

Other examples of UH royalty generating licenses include:

A termite barrier developed by members of the Department of Entomology that has resulted in $200,000 in royalties, with a potential for $60,000 annually.

A simple, inexpensive production system for human proteins and antibodies developed by members of the School of Medicine.

Neugenesis, a newly formed biotechnology company, has given UH 4 percent in common stock of the company to develop the product, and up to 3 percent of net sales.

Sales projections show the UH could earn $50,000 a year in the next three years, with that figure rising to $1 million a year within a decade.

A blight tolerant anthurium, "Tropic Fire," has netted UH $9,000 upfront and could earn up to $100,000 a year in royalties. The anthurium was developed by members of the UH Department of Horticulture.

A genetically engineered coffee plant that produces naturally caffeine-free beans, invented by members of the College of Tropical Agriculture and Human Resources.

In lieu of upfront payments, investors of the Forbio Tropical Plants have sponsored $500,000 in research and have given UH royalties of 8 percent of net sales.

The technology is still in its propagation stage.