MADISON, Wis. -- The Wisconsin Alumni Research Foundation is loosening its licensing policies for embryonic stem cells.

The foundation holds three broadly written, basic patents on embryonic stem cells based on the pioneering work of University of Wisconsin-Madison scientist James Thomson. The foundation is the patenting arm of the University of Wisconsin-Madison. Thomson was the first to grow and isolate human embryonic stem cells in 1998.

WARF will now allow companies to sponsor research at an academic or nonprofit institution without a license. It previously allowed such research to proceed without licenses only at Wisconsin-based institutions.

Foundation managing director Carl Gulbrandsen said that the new policy will allow companies to perform stem-cell research for a lower cost, which is likely to cause companies to increase their funding for it.

Gulbrandsen said that the companies will still need a license from WARF when the stem cell research is brought into their own laboratories.

Scientists around the country have complained that its fees and licensing system was holding back research in the young field.

Foundation spokesman Andy Cohn says it has listened to criticism from its customers and is responding. He says the changes will increase private funding available for the research.