business Sale of logo rights aids students By SCOTT A. ALDERFER Collegian Business Writer No matter where one looks in Happy Valley, there is blue and white as far as the eye can see. Sales of Penn State paraphernalia thrive during football weekends as parents, alumni and tourists fork out the green to buy the blue and white. It certainly seems as if students should be benefitting from the tour ists’ fancy for the Penn State logo. And they are. Thanks to the bliz zard of blue and white, there are $125,000 in scholarships available to University students this academic year. John'S. Bischoff, director of the University committee for licensing, said that before a company may produce any type of merchandise bearing any Penn State logo, it must obtain a license to do so from his committee. More importantly, the committee and the company must make arrangements for roy alty payments. Besides himself, Bischoff said, the committee includes Chairman George Lovette, University asso ciate senior vice president for fi nance and operations; Fran Fisher, assistant athletic director; and one other position, unfilled due to a recent retirement. “A company wishing to use our marks or symbols writes a letter to the licensing office and asks for a licensing agreement stating that they are interested in becoming a licensee,” Bischoff said. “They pay a $25 licensing issue fee to cover the cost of producing the form, filing it and so forth, which is a one-time fee.” For all products sold bearing the symbols or seals of the University, the licensee pays 6 percent of the wholesale cost of the item, Bischoff said. That money is returned to the committee quarterly and then is usually turned over to the Universi ty for scholarships twice a year. “Licensing is a fairly new area to most universities,” Bischoff ex plained. “It’s been snowballing with more and more universities getting into it and realizing that they have a protection of their marks and that it can benefit the university.” Committee member Fran Fisher said the royalty money is used only for scholarships. “That is the function of the pro ceeds,” Fisher said. “It doesn’t go to buy new carpeting for anybody’s Stocks experience worst drop in five weeks By JAMES F. PELTZ AP Business Writer NEW YORK Stocks tumbled to their worst loss in five weeks yesterday as Wall Street grew increasingly worried about the economy’s strength and corporate earnings. Declining issues overwhelmed advances by 4-to -1 on the New York Stock Exchange, and only two of the Big Board’s 15 most-active issues moved ahead. Technology, financial, telephone and aerospace stocks were among those hardest hit. The Dow Jones average of 30 industrials skidded 14.01 to 1,319.44, with none of the 30 stocks gaining ground. It was the measure’s worst decline since dropping 21.73 points Aug. 6. • Big Board volume totaled 100.38 million shares, against 104.73 million in the previous session. Heavy selling related to stock-index futures, which contributed to Tuesday’s broad loss, was again a factor in yesterday’s decline. The “sell Free trade: Does the U.S. need to change its laissez-faire policy to compete internationally? -rLvrrewa SiF r “ ISlhb; —* -.— szsss. jr-is- ju-« Lee lacocca show that Japanese exports to the U.S. on trade. k has made tove - the question of retaliation must be lacocca may have been speaking of the climbed 6 percent compared to last year, Although they do not see protecting U.S. 11 1135 maae nave 06611 cosmei L a considered. Changing from a policy of lais automobile industry, but it is clear that while imports from this country were stifled businesses from foreign imports as nec- Desl - - _ sez-faire to one of restricted trade may many sectors of the U.S. economy have falling 13 percent. essary, proponents of free trade believe that Last April, Prime Minister Yasuhiro Na- Drove detrimental in the long run. been severely affected by the onslaught of a The trade imbalance has caused an in- there are underlying problems that must be kasone set a precedent by issuing new . , Ttc growing deficit in the balance of trade. creasing concern to sweep the nation, leav- solved. Namely, U.S. exporters must be regulations for U.S. entrance into Japan s nlnhihited hJfjYrai n andother ing protectionist sentiment in its path. able to gain access to foreign markets that telecommunications industry; however, the have been prohibited by J apan a „ Congress is no exception. Concerned over are now shut off. condition of case-by-case approval by To- countries from trading m . certam markets Q / the well-being of many U.S. industries, the ~ s R william F Clinger, R-Pa„ who kyo bureaucrats has created red tape for punishing those cornitnesmaynotbeUie AA lawmakers have introduced more than 300 notS .hat the Uai.ed U.S companies tkieker ton whal they Had pl ® ces of protectionist legislation, manyof States is a f ree trading country caught in a ln Waslungton. number one priority and U.S. Trade Rep : which are now debated on Capitol non . free trading world. Although Clinger The Reagan administration had been c layton K. Yeutter has been 1 Hm - , has asked President Reagan to impose a sticking to its guns. It had remained ad- _ in fhat direction WiGHS/, r But, like almost any other issue, there are temporary import surcharge on merchan- amant in maintaining a free trade policy by ° . Kst Sk'** r two sides to the coin. dise entering the country, he adds that it rejecting possible retaliatory tariffs and But even if Yeutter is successful, the V The protectionist camp would like to see shou ld be only temporary. quotas. Businesses and entire industries question must be posed: What affect wiU the the federal government enter the scene to Tpm __ rarv nr ~o Ures he said are who have been blitzed by foreign competi- ability to sell computer chips m Japan have ; Put pressure on foreign traders through the countries - notably tion have found little comfort in the current on the steel industry in the United States? The United States has followed a policy of use of tariffs and other barriers while help- . _ to j ower t ra de barriers ."allowing administration’s policies. . Unfortunately, the answer is- not much iaU«;p7-faire in international trade but its ing struggling U.S. businesses survive. , a P an , . 0 „. ■ fV , • „ . _ , .. , ... .. but the nation as a whole would benefit, laissez-taire m lniernauonai iraue uui ® „ nd Rpm . b i icans f rom U.S. businesses to compete in their do- But on Tuesday, the administration re- trading partners have not and now it seems sensitive states have felt the Doliti- mestic markets. sponded to the political pressures mounting ~ T they have the upper hand. import-sensitivestateshavefeltthepoliti c u , h j aDane se government re- on Capitol Hill. White House Chief of Staff Rich Douma is a senior majoring in S&ris ssKteaswsa MMtsrar. Wendy Peters (freshman-architecture) looks over a Penn State shirt at the Penn State Bookstore on campus Monday night. The University’s committee for licensing regulates the use of the Penn State logo on merchandise and channels the money gained from royalties to student scholarships. office. It’s directed toward some form of scholarship.” David Branigan, special assistant to the University treasurer, said the money accumulated from the roy alty earnings to date has been ap proved for disbursement in two ways. Of the $125,000 available for the 1985-86 school year, 65 percent will be placed in a general scholarship fund, while the remaining 35 per cent will be placed in the Nittany Lion fund for athletic grants and aid, he said “Since this is so new, we’re still trying to work out the selection process,” Branigan said. Eventually the University would like to commit a portion of the funds tagged for the general scholarship fund to support the existing fresh man excellence awards program, he added. Some businesses try to avoid the licensing procedure and the royalty payment, Bischoff said. “We have run into instances in which we have caught small outfits that have reproduced our logos,” he said. “They get a letter, immedi programs” occur when brokerage firms buy the futures contracts and sell the indexes’ underlying stocks to profit from differences in their prices. But dealers said the impact of the programs was magnified by the existing weakness of the market, which reflects investors’ growing concern that the economy is not rebounding as previously ex pected. “There seems to be a thick feeling of pessimism developing,” said Charles Jensen, technical ana lyst at MKI Securities Corp. in New York. Thomas Czech, director of research at Blunt Ellis & Loewi in Milwaukee, said "it finally hit the market square between the eyes that corporate earnings are going to be sluggish” in the third and fourth quarters Czech said the market also was disappointed by the Commerce Department’s report that Ameri can business plans to spend 5.8 percent more on new plant and equipment this year than in 1984. The estimate represented a downward revision from a June forecast that called for a 6.2 percent ately, from our attorney asking them to cease and desist. In every case so far they have done that.” Bischoff said bootleg sales of Penn State paraphernalia are insig nificant because the market is pro tecting itself. “Licensees are protecting them selves against the non-licensees be cause if you have to pay 6 percent, you don’t want to see anyone out there not paying,” Bischoff said. Fisher explained that if bootleg gers are discovered, his committee would inform the party that a li censing agreement is necessary to use the Penn State marks and would try to get the party to sign an agreement. “We don’t want any legal action . we want the roylaties,” Fisher added. “We haven’t gotten into an en forcement program yet, but in fairness to those who do license to the University, we’re going to have to do some investigation,” Fisher said. “We have a local attorney and we have a consulting attorney in Wash ington, D.C., because there are spe cialists in patents and trademarks it’s a very complicated busi ness,” he added. Bischoff said a formal licensing procedure had been under design for one year prior to Penn State’s ‘lt (the money) doesn’t go to buy new carpeting for anybody’s office. It’s directed toward some form of scholarship.’ national football championship in 1982, but the actual federal registra tion took place immediately after the victory. “They just happened to coin cide,” he said. spending increase. “Some people were looking for that number to be revised upward,” he said. He also cited a speech by Preston Martin, vice chairman of the Federal Reserve, in which Martin took note of “substantial downside risks for this sluggish economy,” including rising consumer debt and the potential for a sharp decline in multi family and office construction because of rising vacancy rates SCM fell % to 72% and topped the NYSE’s active list. SCM agreed to a $74-a-share leveraged buyout by SCM management and Merrill Lynch, after which rival bidder Hanson Trust PLC of Britain dropped its offer. Merrill Lynch lost % to 30%. Richardson-Vicks, which soared earlier this week after rejecting a takeover bid from Unilever, retreated 1% to 46%. Nationwide turnover in NYSE-listed issues, in cluding trades in those stocks on..regional ex-' changes and in the over-the-counter market, totaled 117.71 million shares. The NYSE composite index dropped 1.10 to 107.22. —Fran Fisher, assistant athletic director Health care offers fixed By JUDY FISHER Collegian Staff Writer How would you like to visit your doctor and not pay the bill? Instead of paying a family doctor for each visit, many people are join ing health plans where they pay one fixed rate periodically to see their doctor as needed. These plans, called health mainte nance organizations (HMOs), are a form of prepayment health care cov erage. Tliey are a combination of an insurance company and health care service plan, said Stanley P. Mayers Jr., professor of health planning and administration. As of December 1984, there were 16,742,630 people enrolled in HMOs in the United States f said Sue Hartwell, spokeswoman for Inter Study, a non profit health policy research firm. In addition, by June 1984 there were 306 HMOs with 92,000 practicing physi cians to choose from. One type of HMO is the independent practice association (IPA), Mayers said. Doctors are contracted by the IPA to treat patients in their own office. The only difference from inde pendent practice is that the doctors are not paid by the patient directly but by the IPA. “If the quality of care remains as good in the HMO as out, then in most cases the patient is better off,” May ers said. But Mayers said HMOs can create problems for the patient and doctor. "The patient is somewhat restrict ed in the source of medical care,” he said. If the association does not in clude a specialist in an area the patient needs, the patient must go to a doctor outside the HMO for the proce dure and then pay for that procedure in addition to the monthly fee, May ers said. In addition, because the doctor must follow the rules and regulations of the HMO, he loses a certain amount of his independence, Mayers said. The HMO also puts pressure on doctors in the area to join the associa tion to gain patients who have joined, he said. “The private practice doctor who does not choose to belong to an HMO Relief in sight for some depositors at Md. S&L BALTIMORE (AP) The head of the Maryland Deposit Insurance Fund said yesterday he hopes to present a plan next week that will allow withdrawal of funds from Old Court Savings and Loan in cases involving extreme hardship to deposi tors. Melville Brown, the new executive director of MDIF, received a pro posed, plan yesterday from the law firm that is helping the state manage the affairs of Old Court. He said that after reviewing the plan, he will present it to Circuit Judge Joseph H. H. Kaplan, perhaps as early as next week While details have not been made public, Brown said withdrawals will be limited to cases where the freeze is causing severe hardship to deposi tors. Decisions will likely be made on a case-by-case basis following guidelines set up in the plan. One of the difficulties facing the The Daily Collegian Thursday, Sept. 12, 1985 plan rates must be very good or very popular to keep his patients” in an area where many of those organizations are in existence, Mayers said. Doctors join these organizations for several reasons, Mayers said. The doctors gain more patients and re ceive their money promptly. Mayers said HMOs are becoming popular with company health plans. Since many companies are moving toward HMOs for their employees, the v plans are growing much more rapidly in urban areas. “Since the employer gets to bar gain with the HMO on price ... the company benefits because costs are more manageable,” Mayers said. About 80 to 90 percent of all mem bers enter HMOf through their em ployers, said Bruce Stuart, associate professor of health planning and ad ministration. There are many plans to choose from when deciding to join an HMO, Mayers said. “Buying coverage is like buying a car options are extra,” he said, Geisinger Medical Center in Dan ville is the home of one HMO, the Geisinger Health Plan. According to Dr. Daniel Creighton, the plan’s medical director, Geising er does not require a physical, but some questions on the application ask for history of disorders that could disqualify a potential patient. 'lndividuals and families pay differ ent monthly premiums for these serv ices. HMOs are “geared toward people who are generally healthy and want to take good care of themselves," said Creighton. “The idea is to keep people healthy and out of the (doc tor’s) office.” Creighton added that Geisinger’s health plan is “somewhat less expen sive than Blue Cross and Blue Shield, and the patient gets more benefits.” Blue Shield offers an HMO called the Keystone Health Plan. The plan is only offered through corporate health plans and includes 40,000 members, said Karen Early, a spokesperson for Blue Shield The Keystone Health Plan is ad ministered through an independent practice association consisting of 150 doctors practicing in the Harrisburg and Lehigh Valley areas. state will be processing requests for withdrawals that could number in the thousands. There is no mechanism in place now to handle requests, and officials have no way of knowing how many depositors will claim extreme hardship. An important factor in determining how many people will be allowed to withdraw funds is the cash flow at Old Court. A freeze on withdrawal of funds from Old Court has been in place for three months, and Brown said Tues day at a legislative hearing in Anna polis that he doesn’t know when the freeze can be removed or modified at Old Court and at Community Savings and Loan. A freeze also is in effect at Merritt Commercial Savings and Loan, but that will be removed if Chase Man hattan completes the deal to pur chase Merritt, Chesapeake Savings' and Loan and Friendship Savings and Loan, Energy crises only postponed Fonash said another reason for the decline in interest in solar energy in the United States is that “we are shifting to a service economy from a manufacturing Since the uproar over the energy crisis of the late economy. Energy-intensive industries are down. 1970 s died down, many Americans believe the problem Fonash said in the United States, solar energy is past and have turned away from the search for although not popular with the private consumer —is alternative energy systems. used in areas such as oil stations, telecommunications A University professor of engineering science, how- and satellites, as well as some houses, ever, said the energy problem has only been post- In 1992, the 500th anniversary of Columbus discov poned. ery of America, the United States hopes to have a Stephen Fonash, a researcher working on solar space station in orbit with solar panels the size of a energy, said the American public's interest in solar football field, he said. energy has declined dramatically during the past few “Photovoltaic research is making a lot of contnbu years, while Japan is pushing ahead with technology tions to sister technologies, Fonash said, naming the United States began developing. electrophotography and microelectronics as exam- Four years ago Japan began “Project Sunshine,” a pies. • . , 10-year, government-funded program to develop solar Photovoltaics involves the conversion of solar en energy technology, he said. ergy int ° electricity through the use of solar cells “(Japan) is now learning how to very efficiently “Photovoltaics ... will become a viable technology mass produce solar cells. . .they’re putting solar cells ,in Third World countries first before in the United on everything calculators, watches, radios,” he States,” he said. . , , say The United States has a deeply ingrained system of “It's a shame (the United States) squandered the energy resources that the people are not eager to lead that it had,” Fonash said. . change, he said. . Under the Reagan administration, federal funding Americans only seem to respond to crises, and for solar research was dramatically reduced, he said. Americans think that the energy crisis is solved, he “The government was hoping that private industry said, would step into the breach more," Fonash said. Fonash said he believes Third World countries will Most funding for solar research now comes from the be the first to use solar energy extensively. Solar Energy Research Institute a quasi-govem- S.Ashok, associate professor of engineering science, mental agency - and Electric Power Research Insti- returned last week from a trip to India where he visited tute —an organization of major U.S. power companies, India’s largest solar cell manufacturer, Central Elec he said tronics Ltd. Fonash said University research is funded by EPRI; He said the company is producing solar panels Solarex, a Pennsylvania company ; and the federal jet mainly for use in isolated rural areas with no link to propulsion lab electricity-producing areas. The panels have been used A spokesman for the government-funded SERI, who - with a battery backup - for lighting, water pumps declined to be identified, said, “What happened is the and irrigation. Their use is expanding to include solar cost of oil energy declined during the past four or five powered television sets. years when it was predicted that it would increase. All He added he does not believe larger cities in India renewable (energy) technologies have not progressed will use photovoltaics aside from special applications, as rapidly as they would have if the cost of conventio- such as solar-powered vehicles for the handicapped. nal power had gone up.” “There are three important factors (in developing In the last year of the Carter administration budget, so i ar ce ng). cos t i efficiency, and yield,” Ashok said, the spokesman said, between $5BO and $6OO million was .. . .„ allotted for basic research in alternate energy. In “In India cost is even more of a problem because of the fiscal year 1984, spending was about $175 million. l° w gross national product. “If (government spending) follows the trend it has The company believes that if it can reduce the been going in the last three or four years, it will product cost by 25 percent, it will expand the market, decrease, but who knows,” the spokesman said. he said. By RHONDA F. BERSHOK Collegian Science Writer if. ib ,1) • u Solar research strives for efficiency By RHONDA F. BERSHOK Collegian Science Writer A University professor of engi neering science is researching new solar cells that may make generat ing electricity using the sun’s rays more efficient and less expensive. Stephen Fonash said he has re ceived about $1 million in solar cell research support during the past 10 years and has developed the theory behind the metal insulator semi conductor solar cell, one of the most efficient and widely used so lar cells. n . ! >\ Ranbir Singh (graduate-solid state science), who is working with PRICE SL ON PAN PI 95 What’s better than a fresh, hot Pan Pizza from your home town Pizza Hut® restaurant? One that saves you money! 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