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COMMERCIAL AND SECURITY LAW VIOLATIONS

There has been an explosive growth of joint ventures between medical schools and private businesses since the early 1980s, ranging from multimillion-dollar contracts and department-wide cooperative research agreements to informal, short-term contracts with individual researchers. To the extent that these agreements support research with commercial value, they subject the researchers to scrutiny under both the securities laws and the other laws that govern the control of proprietary information--for example, insider trading, a crime that cheats the shareholders of a company of potential profits.

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