Fabrication and Service Contracts; Spin-off Entities

Do fabrication and service activities outside of fundamental research trigger special export control concerns?

What if the fabrication and service activities are being conducted through an independently-owned spin-off entity, i.e. SIU System does not own the activity nor is it the entity disclosing any data being used?

Q: Do fabrication and service activities outside of fundamental research trigger special export control concerns?

A: Most definitely, yes. Where fabrication or contract service work is being conducted using the university’s physical or human resources (i.e. a separate legal entity does not own or house the activity), it is essential that the PI/Administrator leading or conducting such activity understand the export control implications and requirements prior to such activity occurring. Again, certain exemptions such as the ITAR bona fide employee exemption will not apply to this type of non-research/academic activity.

Q: What if the fabrication and service activities are being conducted through an independently-owned spin-off entity, i.e. SIU System does not own the activity nor is it the entity disclosing any data being used? 

A: Where a SIU System PI or administrator has spun-off or is working for a separately organized company to perform contract services independent of his/her research or teaching position at SIU System, the activity conducted by this company cannot be conducted using the university’s physical resources (including laboratory space) or human resources (unless by separate contract). In these cases, such activity - - which is outside the scope of the university’s fundamental research exclusion - - may trigger export control requirements for which the University will not be legally responsible.

In such situations, it is necessary for the separate legal entity to seek separate counsel pertaining to export control compliance obligations. As noted above, the bona fide employee exemption under ITAR allowing a foreign national faculty member access to ITAR data does not apply or carry over to ITAR work or access to controlled instruments or data provided by and conducted through a separate proprietary entity.