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State of Hawaii


State ethics code hinders
innovation, lawmaker says



By Bruce Dunford
Associated Press

One key to attracting the University of Hawaii's research arms into the effort to diversify the state's tourism-dependent economy is to adjust the state's ethics code and make it easier for professors to capitalize on their findings and ideas, according to one state lawmaker.

The state's ethics code was drafted to apply to government officials and eliminate conflicts of interest and obvious corrupt activities, said state Rep. Brian Schatz (D, Tantalus-Makiki), chairman of the House Committee on Economic Development.

"The State Ethics Commission has been liberal in interpreting the code to allow commercialization of academic achievement, but to be consistent with UH autonomy and what we envision for it, I think we need to put it in statute," he said.

"Some professors don't feel comfortable going to the Ethics Commission to get a clearance because they feel it puts them in a bad light" and they are concerned that in the very competitive marketplace for major discoveries, "it could tip off the competition," Schatz said.

Most major research universities, such as MIT and Stanford, have ethics codes that encourage the commercialization of intellectual property, Schatz said.

Almost all American universities keep ownership of patents on inventions created at their schools, while sharing any royalties with the inventor.

At the University of Hawaii, the historical 50-50 sharing of patent or intellectual property rights created by UH faculty members became an issue when the administration proposed to reduce it during last year's contract talks.

Even before Schatz went public with his proposal to modify the ethics code, Hawaii State Ethics Commission Executive Director Daniel Mollway denounced the idea and said he was "suspicious as to the motives."

"I do not believe that there is universal agreement (among academics) concerning the extent to which faculty should be given license to pursue commercial ventures," Mollway said in a letter to lawmakers.

Mollway said he was concerned that the argument would be made that the ethics code has been an impediment to commercializing the work of faculty members, "when this, in fact, is not the case."

Schatz said of Mollway's letter: "It's understandable that the executive director would guard the ethics code seriously, but I think he can be comfortable in knowing that the Legislature doesn't want to erode the code. We will deal with his concerns and the concerns of the UH faculty."

In October, David Kessler, dean of the Yale University School of Medicine, told a Honolulu luncheon of biotechnology leaders that the university's $150 million medical school and biomedical research facility being built in Kakaako can be a start for Hawaii's economic diversity.

It's not just about the building, but "the collective vision of investing in basic research" that will generate the intellectual property that will attract investments that will yield startup companies which will create jobs and a broader economy, Kessler said.



Hawaii State Ethics Commission

University of Hawaii

State of Hawaii


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