EUGENE, Ore. (AP) -- The University of Oregon has dropped plans to go big-time in licensing T-shirts and hats with its O logo.

The university had considered requiring apparel companies to guarantee $500,000 a year in royalties -- meaning at least $5 million a year in sales. The practice has been adopted at big American universities, such as Ohio State, Texas and Oklahoma.

Small Oregon companies said that would cut them out of Ducks business. The owner of Triangle Graphics in Eugene told the Register-Guard ( he sells $250,000 a year in Ducks goods -- a third of his volume -- and would have to trim his eight-person staff.

A university marketing official, Matt Dyste, said it considered the proposals it got as well as public reaction in deciding not to change the practice.

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