Press Briefing by Marlin Fitzwater and Ronald Robertson, General Counsel to the U.S. Department of Health and Human Services

Photocopied at the Roald Regan Libra, -
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and the Department of Health and Human Services -- major
pharmaceutical houses produced them under license agreements with the
respective institutions. So the $5 million figure that I gave you
for total worldwide royalties, is a figure that -- of the monies
coming to the institutions based on their license agreements with --
Q In other words, there's approximately a five percent
royalty on each sale?
MR. ROBERTSON: That's right.
Q And that gets further split when it goes 80 percent
to the institutes -- or to the foundation, and 20 percent to the
institutes?
MR. ROBERTSON: That's right.
Q Is it a vision that the Institute will raise money
from other sources in addition to the royalties?
MR. ROBERTSON: Yes. Yes, it is.
Q Such as? What kind of fundraising?
MR. ROBERTSON: That really hasn't been fully developed,
but it is contemplated that it would have a fundraising function with
outside sources -- private funding.
Q And will there be some sort of governing board? Or
how will --
MR. ROBERTSON: There will be a governing board initially
appointed by three members appointed by the Secretary of Health and
Human Services, and three members appointed by the Chairman of the
Institut Pasteur --
Q Where will it be located?
MR. ROBERTSON: Where will it be physically located?
Q Yes.
MR. ROBERTSON: It will be physically located here in
Washington. The precise location has not been --
Q And when's the -- what's the projection as to when
you might actually have the foundation formed?
MR. ROBERTSON: We would hope within a matter of months.
What has to await the actual formation of the foundation, or the
commencement of the foundation activities, is a resolution of all of
the patent issues, which will take some time in the Patent Office.
But the framework has been developed in the agreement.
Q Do you happen to know how much federal --
Q Can I just --
Ijust wt tnuto --
~Q I just want to finish -- and thle point of the

foundation will be AIDS vaccine research, or what?
MR. ROBERTSON: -- will be to funnel the royalty monies
contributed to that foundation into scientific research and
education.
Q What do you mean by resolution of all the patent
issues? I thought you said they'd been resolved?

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