The widespread introduction of microcomputers in higher education has had an impact on a variety of issues within the university community. One of the most important issues has to do with what constitutes intellectual property and who owns this property. Most universities have established a patent policy as there have long been financial rewards associated with patents. However, faculty development of software (which usually falls under copyright rather than patent law) is forcing a modification to existing models, in part due to the potential economic gain involved, and partly because of the extent of institutional resources that may go into a software product. This paper discusses some of the basic issues that had to be addressed in the development of a copyright policy at Drexel University, and presents the latest draft of that policy as a sample that may be used by others in drawing up their own policies. Among the issues addressed are definitions, copyright policy objectives, ownership of the copyright, royalty distribution, and administration of the copyright policy. (THC)