Ask HN: Legal rights to University project?

Hi all,

I go to a University in Pennsylvania that requires Engineering students to complete a "Senior Design" project during your last term as a student. Generally students will do projects very academic in nature, along the lines of finding more effective RFID methodologies, different algorithm improvements, etc. (things that generally don't interest me greatly). The end purpose of these projects is to be a sort of "capstone" project that incorporates all the things you've learned in school.

I've managed to negotiate a special case where I will be able to essentially do an independent study to create my startup idea as my Senior Design, since it is, in essence, a culmination of all the skills that I've learned thus far. I will essentially need nothing from the University in order to complete this project, outside of their mandatory adviser to oversee the independent study.

My question is this, for those that may have some experience: Does the University legally retain rights to any work that is generated in this project (essentially, the whole company... if I eventually incorporate)? I've made it clear that this is intended to eventually be run as a business, though I am not yet incorporated. I have signed no papers other than a short form that described the project, and whatever I signed when I committed to coming to the University four years ago.

I'm in the process of trying to get to the bottom of the issue by talking to faculty, but I wanted to see what ideas everyone here has first.