Interim Policy Regarding Faculty Profits on Course Materials

Executive Memorandum 92-043

September 04, 1992

From: Robin S. Wilson, President

Subject: Interim Policy Regarding Faculty Profits on Course Materials

FACULTY PROFITS ON COURSE MATERIALS

Upon recommendation of the Faculty Senate, I approve the following interim policy for immediate implementation.

The faculty of California State University, Chico are prohibited from personally profiting from the local sale of course materials to CSU, Chico students unless those materials are the result of substantial creative effort by the faculty member and have undergone substantial peer review. Where these conditions obtain, the faculty of CSU, Chico are limited to a royalty of 10 percent of the local sale price. This restriction does not apply to materials that have been copyrighted by the faculty member, that have undergone peer review, that have been published, and that have wider circulation than CSU, Chico.

Cash Collection Points

University policies regulate the exchange of money between students and faculty or staff. Unless faculty and staff are part of a pre-approved cash collection point, they are explicitly prohibited from accepting cash from students. Individual faculty members or departments wanting to sell a product to students on this campus must use one of the following approaches:

  • Arrange to sell the product through the AS Bookstore
  • Arrange with cashiering to collect the money and issue a "pre-paid" card to be exchanged for the product
  • Apply to the cashiering office for permission to be a cash collection point
  • Request approval for a miscellaneous course fee to cover the cost of the product to be provided
  • Arrange to have a student group sell the product.

Procedure for Faculty

Faculty have the responsibility to select high quality instructional materials for the classes they teach. Because coursepacks and readers are an excellent method for getting current material to students in a timely fashion, their use is not only permitted but encouraged. However, because the Professional Ethics and Standards section of Faculty Personnel Policies and Procedures (FPPP) forbids profiting unreasonably at the expense of one's students and because the fact--or even the appearance--that faculty profit unreasonably at the expense of their students negatively affects the reputation of the academy, the construction of coursepacks is considered a part of the normal instructional workload and therefore is an activity for which faculty are already paid.

Coursepacks are useful for providing access to current material. They may contain copyrighted material only if its inclusion does not violate copyright laws, (e.g. , material in the public domain). Use of copyrighted material without permission is illegal. Faculty are personally responsible for insuring that copyright restrictions are followed. Copyrighted material may only be included if permission has been obtained from the copyright holder and if an agreement regarding payment of royalties has been reached with the copyright holder. Some usage without permission may be allowed under the doctrine of Fair Use. Sales may be managed by the copy shop of the faculty member's choice (AS Bookstore, Kinko's, etc. ). If the coursepack production is supported by the University Foundation, the project may be reproduced by the university copy center (Kwik Copy). Departments or individual faculty members wishing to sell the packs themselves must make arrangements with cashiering for authorization to become a cash collection point. Proper accounting procedures must be followed, and all purchases must be accompanied by a receipt specifying the nature and cost of the purchase.

Occasionally the production of coursepacks or readers may involve exception creative effort on the part of a faculty member and may have been subjected to peer review. Under these circumstances a royalty may be permissible. However, because of the restriction on profiting at students' expense, the royalty cannot exceed 10 per cent of the cost of the coursepack or reader. In addition, students cannot be required to purchase coursepacks or readers; the coursepack or reader must be available elsewhere to the student, e.g. , in the Meriam Library Reserve Room; and substantial university resources cannot have been used to produce the coursepack or reader (see EM 83-008).

These restrictions do not refer to scholarly works published commercially, nor are they in any way meant to restrict academic freedom. They refer only to coursepacks and readers that have been locally compiled and produced.

Procedure for Student Groups

Certain restrictions apply to on-campus sales of coursepacks by student groups, which are responsible for insuring that these restrictions are met. A. Coursepacks may contain copyrighted materials only if their inclusion does not violate copyright laws, (e.g. , material in the public domain). Use of copyrighted materials without permission is illegal. Student groups are personally responsible for insuring that copyright restrictions are followed. Copyrighted material may only be included if permission has been obtained from the copyright holder and if an agreement regarding payment of royalties has been reached with the copyright holder. Some usage without permission may be allowed under the doctrine of Fair Use.

Arrangements may be made to sell the coursepack through the AS Bookstore.

Student groups wishing to sell the coursepack themselves must make arrangements to provide all purchasers with a receipt identifying the nature and cost of the purchase.

For suggestions, instructions, and information regarding any further restrictions, students are referred to the Student Activities Office.