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The teaching of design courses for engineering students can be an excellent opportunity for cooperation between industry and higher education. Chronic problems faced in academe (course staffing, project selection) and in industry (design skills of new employees) can be in large part solved by such cooperation. Students can benefit from more meaningful course content and from contact with industrial settings and procedures. This kind of cooperation can work exceptionally well in programs where the students have already had co-operative work experience. The advantages and pitfalls of this kind of cooperation are illustrated by a critical review of a recent industrial sponsorship of a design course for engineering mechanics seniors.