Navigating Conflicts of Interest for Faculty Founders and SBIR/STTR Awards

Faculty who found or co-found a company, regardless of whether that company is licensing UO intellectual property, must comply with two conflict of interest policies: 

• Conflict of Interest, Conflict of Commitment, and Outside Activities Policy (COI/COC policy), which applies to all UO employees 
• Financial Conflict of Interest in Research Policy (FCOI policy), which applies to all sponsored researchers 

Close collaboration between university researchers and private companies, including startup companies, can raise conflicts of interest. Early disclosure and proactive management help: 

• Prevent delays in receiving sponsored funding 
• Support successful commercialization efforts 
• Ensure transparency 
• Reduce bias 
• Protect research integrity 

What to Disclose and Why

Under the COI/COC policy, faculty must disclose ownership interest in an entity that conducts business within their field of expertise and/or related to their UO job duties. UO startup companies typically meet this definition and must be disclosed. 

Under the FCOI policy, ownership interest in a non-publicly traded entity is a Significant Financial Interest. The Significant Financial Interest becomes a financial conflict of interest when there is an actual or potential overlap between the faculty member’s UO research and the company’s research or business activities. 

This situation commonly arises when a company receives funding (such as a Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) Award) in which the UO participates in the research as a subawardee with the faculty member serving as principal investigator or senior/key personnel on the UO subaward.

When and How to Disclose 

Step 1: Consultation (Optional)

The Conflict of Interest Team invites one-on-one consultations so we can best understand each specific situation, explain the process, answer questions, and help set the faculty member up for success in meeting their commercialization efforts. 

We recommend consultations occur during the exploration process, prior to founding a company.

We most often respond to consultation requests within the same day and are able to meet as soon as the following day.

Request Consultation

Step 2: Submit a Disclosure (Required)

Faculty planning to form or join a company should submit a disclosure in the Research Administration Portal before they form the company, as ownership interest in an entity that conducts business related to one’s UO job duties or within one’s field of expertise requires prior approval under the COI/COC policy. 

See our tutorials or email us at coi@uoregon.edu if you need assistance to submit the disclosure.

Step 3: COI/COC Management Plan (Required) 

After receiving the disclosure, staff in the Conflict of Interest Office work with faculty and their supervisor, PI, and/or department head to draft a conflict of interest management plan under the COI/COC policy.  

Please see our webpage on COI/COC management plans to learn more about the process and common management plan steps.

Step 4: FCOI Management Plan (Required ONLY IF Sponsored Research Overlap Exists)

If the faculty member engages in sponsored research that overlaps with the company’s activities, the Conflict of Interest Office collaborates with the Conflict of Interest in Research Committee and the faculty member to update the management plan to address the specific financial conflict with the research. 

This step occurs only when a sponsored project is funded and a conflict is identified during the award setup process.  

Please see our webpage on FCOI management plans to learn more about the process and common management plan steps.

In-Depth Look: Disclosures, Conflicts of Interest, and SBIR/STTR Awards

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs fund small businesses conducting research and development. These awards aim to boost private sector commercialization and drive technological innovation. 

STTR awards in particular require a formal partnership between a small business and a U.S. research institution. The research institution must be the subawardee, not the primary recipient. 

For agency-specific guidelines, visit the relevant award solicitation and agency website.

Managing Conflicts in SBIR/STTR Awards

SBIR/STTR projects can present heightened conflict-of-interest risk when a faculty member has an ownership interest, management role, consulting relationship, or other financial interest in the small business and also participates in related UO research.  

Even when federal rules exempt certain SBIR Phase I applications from FCOI requirements, UO disclosure obligations still apply. Faculty serving as principal investigators, co-investigators, senior/key personnel, consultants, company founders, officers, employees, or equity holders should disclose relevant outside activities and financial interests before proposal submission and update their disclosure within 30 days if roles, compensation, equity, sponsored funding, or project scope change. 

When UO will receive a subaward, conduct project work, provide facilities or personnel, or otherwise participate in research that overlaps with the company’s business or technology, the Conflict of Interest Office will review the disclosure before UO work begins and before award funds are expended. If the financial interest could directly and significantly affect the design, conduct, or reporting of the research, the conflict will be reviewed and managed under the FCOI process (Step 4 above). 

SBIR/STTR projects may raise these common conflict-of-interest risk areas, which are usually manageable when identified early: 

• Dual university/company roles: serving as a UO researcher while also holding a founder, owner, officer, employee, consultant, PI, senior/key personnel, or equity-holder role with the small business. 
• Research overlap: conducting UO research that overlaps with the company’s technology, products, services, or commercialization plans. 
• UO subaward participation: using UO personnel, facilities, equipment, or other institutional resources on an SBIR/STTR-funded project. 
• Student or trainee involvement: involving students, postdocs, or other trainees in work that may also benefit the company. 
• Research independence: ensuring appropriate independence in research design, conduct, data collection, analysis, reporting, and publication. 
• Purchasing, consulting, and subcontracting: making decisions involving vendors, consultants, subawards, or services connected to the company. 
• IP and commercialization alignment: managing the relationship among sponsored research, background intellectual property, license or option agreements, and the company’s commercialization plans. 
• Sponsor-specific requirements: complying with agency- and phase-specific SBIR/STTR requirements, including primary employment, allocation of work, subawards, intellectual property, foreign relationships, and post-award reporting. 

Faculty should also consult the specific solicitation and sponsor requirements early. SBIR and STTR rules vary by agency and phase, including requirements related to primary employment, allocation of work between the small business and research institution, subawards, intellectual property, foreign relationships, and post-award reporting.

NIH-specific SBIR/STTR Disclosure Requirements

NIH SBIR/STTR applicants and awardees may be required to disclose funded and unfunded relationships with foreign countries and foreign entities, including covered foreign affiliations or relationships identified through NIH’s foreign risk review process. These requirements are separate from, and in addition to, UO’s COI/COC and FCOI disclosure requirements. 

Faculty and company representatives should monitor these obligations throughout the award period. NIH may request disclosures post-award, including for active awards that did not undergo foreign risk assessment at the time of application. Entering into new foreign relationships or commitments (such as foreign venture capital funding) after award may create reporting obligations and, in some cases, affect continued eligibility for funding. 

• See NIH SBIR and STTR Foreign Disclosure Pre-award and Post-award Requirements 
• See NIH SBIR and STTR Foreign Disclosure Post-award Requirements for Active SBIR and STTR Awardees