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Models for Capital Creationin Technology-MediatedLearning: 

Models for Capital Creation in Technology-Mediated Learning

Standard Model: 

Standard Model Institution Capitalization Entity Non-profit or Public Entity For-Profit Entity Ownership Interest

Fundamental Premises: 

Fundamental Premises Academic control remains with the Institution. The capitalization entity cannot exercise control over the Institution. The structure does not affect either accreditation or state authorization.

Rights of the Capitalizaation Entity: 

Rights of the Capitalizaation Entity The Institution’s intellectual property rules do not necessarily apply to the capitalization entity. The capitalization entity can engage in non-credit, non-degree instructional services. The capitalization entity can engage in the creation of credit and non-credit courseware.

Economic Benefits to the Institution : 

Economic Benefits to the Institution Income stream from credit enrollments. Royalty stream from use of brand (i.e. institution’s name and logo). License revenue from use of courseware. Share of net profits of capitalization entity. Share in equity appreciation in capitalization entity.

The Bifurcation Model: 

The Bifurcation Model Institution

Slide7: 

The Bifurcation Model For-Profit Operating Subsidiary All Non- Academic Functions Institution All Academic Functions Creates

Slide8: 

The Bifurcation Model For-Profit Operating Subsidiary Non-Academic Functions Institution Academic Functions Majority Owner Investor Minority Owner

The Operating Subsidiary Model: 

The Operating Subsidiary Model Institution

Slide10: 

The Operating Subsidiary Model Institution Special Purpose For-Profit Entity Creates $

The Joint Venture Model: 

The Joint Venture Model Institution For-Profit Partner

Slide12: 

The Joint Venture Model Institution For-Profit Partner New For-Profit Venture Ownership Interest Ownership Interest

Slide13: 

The Common Enterprise Model Institution A Institution B

Slide14: 

The Common Enterprise Model Institution A Institution B New Non-Profit Entity Shared Governance Shared Governance

Slide15: 

The Common Enterprise Model Institution A Institution B New Non-Profit Entity Shared Governance Shared Governance New For-Profit Entity Ownership $

Services Model #1: 

Services Model #1 For Profit Entity Facility Builds

Slide17: 

Services Model #1 For Profit Entity Facility or Delivery System Builds Institution Curriculum Creates

Slide18: 

Services Model #1 For Profit Entity Facility or Delivery System Builds Institution Curriculum Creates Delivers at

Services Model #2: 

Services Model #2 For Profit Entity 'Turnkey' Curriculum Creates

Slide20: 

Services Model #2 For Profit Entity 'Turnkey' Curriculum Creates Institution Adopted by

Services Model #2: 

Services Model #2 For Profit Entity 'Turnkey' Curriculum Creates Institution Adopted by Delivery System Delivered Via

Services Model #2: 

Services Model #2 For Profit Entity 'Turnkey' Curriculum Creates Institution Adopted by Delivery System Delivered Via Awards Academic Credit or Credential Evauates Student Performance

Michael B. Goldstein: 

Michael B. Goldstein Dow, Lohnes andamp; Albertson 1200 New Hampshire Ave., NW Washington, DC 20036 mgoldstein@dlalaw.com 202.776.2569 Fax 202.776.4569 www.dlalaw.com