This study analyzes interview data from 37 science and engineering faculty involved in university-industry relations. Faculty are particularly concerned about how these relations affect their work with graduate students. Our analysis is guided by ritual exchange theory and network theory. First, we explore the ways faculty define and redefine what makes industrial or corporate research appropriate or inappropriate for training graduates. Second, we examine difficulties and tensions faculty face when they work with students on industrial or corporate projects. These difficulties (...) and tensions center on intellectual property and we look at how faculty negotiate with industry over restrictions on publication of graduate student and faculty research results, on faculty and graduate student involvement in start-up companies, and on faculty and graduate student ownership of intellectual property. (shrink)