CRADA. Concurrently with entry into this Agreement, the parties agree to the obligations set forth in Exhibit B, which is hereby made a part hereof of this Agreement, pursuant to which NewLink will provide certain funding to LIMR in support of the Sponsored Research to be conducted by the Investigators. Under such CRADA, NewLink may renew the Sponsored Research (Newlink shall base its election upon the research results and other potential corporate limitations) for additional years at an annual budget to be based on scientific needs and approved by NewLink; [*] described in Exhibit B, in consideration for such funding LIMR agrees to [*] for Future IDO Discoveries as provided in Section 13 (b). The decision to renew the CRADA for additional years shall be made at least three months prior to the expiration date of the CRADA and shall based on a progress report submitted by LIMR to NewLink.
CRADA. Attached as Exhibit 3.27 is a copy of the CRADA. Except as set forth in Exhibit 3.27: (i) the CRADA is in good standing, (ii) Biovest is in full compliance with all material terms and requirements of the CRADA, (iii) Biovest has not received any notice of default or non-compliance of or with the CRADA, and (iv) Biovest has no reason to believe that it may be in default or non-compliance, with the CRADA.
CRADA. A Cooperative Research and Development Agreement (CRADA) is a “comprehensive legal [agreement] for the sharing of personnel, equipment, funding, and intellectual property rights in joint government-industry research.”42 CRADAs can be made with other government agencies (local, state, and federal), private companies, foundations, universities, or individuals.43 In such an agreement, both parties share the costs of R&D and have the ability to negotiate the licensing of any inventions that come out of it.44 These arrangements are fairly common: in 2005, the DOD alone had more than 2,000 CRADAs.45 CRADAs do have some potential as a tool for creating innovation orchards, as they allow technology entrepreneurs access to the resources possessed by national laboratories. For this reason, many PIAs, including the examples of N-STEP and TechLink, contain within them the option for the government agency involved to enter into a CRADA with businesses identified by the PI.46 However, there are also a number of issues with CRADAs that would prevent them from being enough to form innovation orchards on their own. Los Alamos National Laboratory is home to a number of CRADAs. When 63 individuals from the lab and 59 individuals from the private companies that they were in a CRADA agreement with were asked in 1998 what the biggest obstacles to the process of entering a CRADA were, the majority of both groups chose “complicated administrative procedures.”47 More than 40% of each group also identified “the lengthy time period to establish a CRADA” as one of the major obstacles.48 According to other research, “CRADA negotiations take about two to four months when no complicated issues are raised. However, when legal [or technology] complications arise, negotiations often last from four to six months and in some instances from twelve to eighteen months.”49 Because “time spent in planning joint R&D [is charged] to a laboratory's overhead account… lab researchers often spend their own time working on a CRADA.”50 CRADAs can often be a useful tool, but the administrative and organizational difficulties inherent in the way they are structured could make it difficult to create the type of truly cooperative environment necessary for an innovation orchard to thrive using this device alone. Keeping CRADAs as one tool in the box of a PIA appears a good idea, but relying on that tool alone may not.
