Section 14C. The university may establish and manage, under such regulations as the board of trustees may from time to time prescribe, the University of Massachusetts Research Foundation, for the purpose of promoting research at the university by obtaining, administering or disposing of patents or inventions resulting from such research or otherwise and devoting the income therefrom to further research, beneficial to the university and to the commonwealth.

The University of Massachusetts Research Foundation may (1) receive and hold in separate custody gifts, bequests and devises of real or personal property; (2) receive and hold in separate custody compensation or reimbursement resulting from inventions, patents, contractual or other research, the conducting of tests for outside agencies or other funds that may be acceptable to the foundation; (3) disburse funds so acquired for purposes of instruction, research, tests, invention, discovery, development or engineering consistent herewith; (4) obtain, administer and dispose of patents, assignments, grants, licenses or other rights and hold the same in separate custody; (5) make assignments, grants, licenses, or other disposal equitably in the public interest of any rights owned, acquired or controlled by the Foundation in or to inventions, discoveries, patent applications or patents, and to charge therefor and collect and to incorporate in funds in the custody of the Foundation reasonable compensation in such form as the board of trustees may determine; and (6) execute contracts with employees or others for the purpose of carrying out the provisions hereof and permitting such employees or others to share in the net proceeds of such contracts as the board of trustees shall determine.

The foregoing shall not authorize any action in contravention of the requirements of Section 1 of Article LXIII of the Amendments to the Constitution. The funds of said Foundation shall be subject to audit by the state auditor, in accordance with generally accepted government auditing standards, as often as the state auditor determines is necessary. No activities, specified in the foregoing, shall be undertaken by said Foundation which in the opinion of the board of trustees will be likely to interfere with the regular, efficient and proper exercise of the functions of said university. In conducting contractual or other research, tests or similar activities, said Foundation shall give preference to citizens of and to corporations organized under the laws of the commonwealth.

The board of trustees shall prescribe and enforce such regulations as it may deem necessary, with regard to the ownership of inventions developed with the use of facilities of the institute by students, research fellows, staff members, faculty or other persons, the transfer of such inventions, or patent applications or patents resulting therefrom, to the Foundation, the amount of the respective shares of the inventor, the university, and the Foundation in the proceeds therefrom, and the arbitrating of any and all disagreements involving the same.