HBA-NIK H.C.R. 127 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.C.R. 127
By: Maxey
Civil Practices
4/19/1999
Introduced



BACKGROUND AND PURPOSE 

The AFEX Corporation (company) alleges that on March 19, 1992, the company
entered into an agreement with the Texas A&M University System (university)
and two professors employed by the university, Dr. Mark Holtzapple and Dr.
Richard Davison.  The company alleges that the agreement contained a
representation and warranty that the university had not incorporated or
used confidential information of the Colorado State University Research
Foundation (foundation) or the company, obtained before the date of the
agreement, into research or technologies the right to which had not been
transferred to the foundation or the company in the agreement.  The company
alleges that the agreement provided that confidential information of the
company would not be revealed.  The company alleges that the agreement
stated that the university was to assign certain rights in technologies,
patent rights, and patent applications it had at the time of the agreement,
to the foundation, which would then license those rights to the company.   

The company alleges that the agreement obligated the university to enter
into sponsored agreements with the company under defined circumstances, and
that both Dr. Holtzapple and Dr. Davison were to assign their rights in the
technologies, patent rights, and patent applications directly to the
company. The company alleges that Dr. Bruce Dale, while a professor at the
university, was bound to comply with the confidentiality requirements of
the agreement, as well as confidential obligations that arose out of his
relationship with the company and its affiliates.  The company alleges that
the university has failed to comply with the agreement to transfer its
rights of certain developments to the foundation of the company, while
using their confidential information, technologies, patent rights, and
patent information.  The company also alleges that the university has
breached the agreement by disclosing and using the confidential information
of the company without the company's permission.  The company alleges that
it has fulfilled its obligations under the terms of the agreement.  The
company also alleges that it has incurred damages and is entitled to the
benefits of the agreement, common law rights, and attorney's fees and court
costs.  H.C.R. 127 grants the AFEX Corporation permission to sue the State
of Texas and the Texas A&M University System subject to Chapter 107
(Permission to Sue the State), Civil Practice & Remedies Code. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

H.C.R. 127 grants the AFEX Corporation permission to sue the State of Texas
and The Texas A&M University System subject to Chapter 107 (Permission to
Sue the State), Civil Practice & Remedies Code. 

Provides that the chancellor of the Texas A&M University System be served
process as provided by Section 107.002(a)(3) (Effect of Grant of
Permission), Civil Practice & Remedies Code.