[Code of Federal Regulations]

[Title 15, Volume 3]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 15CFR1160.2]



[Page 423]

 

                  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.