N.J. Admin. Code § 18:24-9.10

Current through Register Vol. 56, No. 11, June 3, 2024

Section 18:24-9.10 - Scientific defined

(a) Since an organization may meet the requirements of 54:32B-9(b)(1) only if it serves a public rather than a private interest, a scientific organization must be organized and operated in the public interest (see (b) and (c) below). Therefore, the term scientific, as used in 54:32B-9(b)(1) includes the carrying on of scientific research in the public interest. Research, when taken alone, is a word with various meanings; it is not synonymous with scientific, and the nature of particular research depends upon the purpose which it serves. For research to be scientific, within the meaning of 54:32B-9(b)(1), it must be carried on in furtherance of a scientific purpose. The determination as to whether research is scientific does not depend on whether such research is classified as fundamental or basic as contrasted with applied or practical.

(b) Scientific research does not include activities of a type ordinarily carried on as an incident to commercial or industrial operations, for example, the ordinary testing, designing, or construction of equipment, buildings, and similar structures.

(c) Scientific research will be regarded as carried on in the public interest if:

1. Results of such research (including any patents, copyrights, processes, or formulae resulting from such research) are made available to the public on a nondiscriminatory basis;

2. Such research is performed for the United States or any of its agencies or instrumentalities, or for a state or political subdivision thereof; or

3. Such research is directed toward benefiting the public.

(d) Examples of scientific research that are considered directed toward benefiting the public, and which are regarded as carried on in the public interest, include, but are not limited to:

1. Scientific research carried on for the purpose of aiding in the scientific education of college or university students;

2. Scientific research carried on for the purpose of obtaining scientific information which is published in a treatise, thesis, trade publication, or in any other form that is available to the interested public;

3. Scientific research carried on for the purpose of discovering a cure for a disease; and

4. Scientific research carried on for the purpose of aiding a community or geographical area by attracting new industry to the community or area or by encouraging the development of, or retention of, an industry in the community or area. Scientific research, described in this subsection, will be regarded as carried on in the public interest even though such research is performed pursuant to a contract or agreement under which the sponsor or sponsors of the research have the right to obtain ownership or control of any patents, copyrights, processes, or formulae resulting from such research.

(e) An organization will not be regarded as organized and operated for the purpose of carrying on scientific research in the public interest and consequently will not qualify under 54:32B-9(b)(1) as a scientific organization, if:

1. Such organization will perform research only for persons which are (directly or indirectly) its creators and which are not described in 54:32B-9(b)(1); or

2. Such organization retains, directly or indirectly, the ownership or control of more than an insubstantial portion of the patents, copyrights, processes, or formulae resulting from its research and does not make such patents, copyrights, processes, or formulae available to the public. For purposes of this section, a patent, copyright, process, or formula shall be considered as made available to the public if such patent, copyright, process, or formula is made available to the public on a nondiscriminatory basis. In addition, although one person is granted the exclusive right to the use of a patent, copyright, process, or formula, such patent, copyright, process, or formula shall be considered as made available to the public if the granting of such exclusive right is the only practicable manner in which the patent, copyright, process, or formula can be utilized to benefit the public.

(f) The fact that any organization (including a college, university, or hospital) carries on research which is not in furtherance of an exempt purpose described in 54:32B-9(b)(1) will not preclude such organization from meeting the requirements of 54:32B-9(b)(1), so long as the organization meets the organizational test and is not operated for the primary purpose of carrying on such research.

N.J. Admin. Code § 18:24-9.10

Amended by 48 N.J.R. 824(a), effective 5/16/2016