I labored over choosing (A) and (D) for way too much time!
Initially, I leaned more toward (D) since (A) indicated "...clear-cut policies" whereas the first paragraph seems to suggest greater flexibility, not "clear-cut" anything, is what's needed.
What really turned me off from (D), however, is when it said "...regarding faculty as the owners of their intellectual products." I'm pretty sure the policy (D) is describing is the "faculty-oriented" one specified in paragraph 4, but I felt that remark in the answer was too limited -- since the paragraph clearly indicates that faculty ownership isn't in every case (the rule doesn't apply to development of public-health inventions or previously specified "substantial university involvement").
Can someone help?!