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.