[Code of Federal Regulations]
[Title 15, Volume 3]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 15CFR1160.2]

[Page 399]
 
                  TITLE 15--COMMERCE AND FOREIGN TRADE
 
      CHAPTER XI--TECHNOLOGY ADMINISTRATION, DEPARTMENT OF COMMERCE
 
PART 1160--PRODUCTIVITY, TECHNOLOGY AND INNOVATION--Table of Contents
 
      Subpart A--Promotion of Private Sector Industrial Technology 
                              Partnerships
 
Sec. 1160.2  Definitions.

    (a) Industrial Technology Partnerships (ITPs). As used in this 
subpart, ITPs include research and development limited partnerships 
(RDLPs) and cooperative R&D arrangements of companies, non-profit 
organizations, and Federal agencies or some combination thereof.
    (b) Research and Development Limited Partnership (RDLP). In general, 
the RDLP is a type of business organization to raise venture capital 
from the private sector to fund specified research and development 
projects. Additional characteristics are as follows:
    (1) Establishment in general. An RDLP can be established by an 
existing firm, or by an independent entrepreneur, to finance specified 
research and development projects. It can effectively finance both small 
and large scale projects. It is established by a partnership agreement 
tailored to the particular projects to be funded.
    (2) Classes of partners. In general, a partnership agreement 
establishing an RDLP will provide for two classes of partners, as 
follows:
    (i) The General Partner or partners provide the management for the 
partnership, obtain funding, make arrangements for the conduct of 
research, and ultimately either manufacture any new products resulting 
from the research and development or license out the resulting 
technology; and
    (ii) The Limited Partners invest in the partnership, bear most or 
all of the financial risk, share in the financial success from proceeds 
of manufacture, royalties or other paybacks, and receive tax benefits, 
but exercise no active management role in the partnership.