Understanding the grammar? PT43 Passage 4

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Passage: https://7sage.com/lsat_explanations/lsat-43-section-1-passage-4-passage/
Question: https://7sage.com/lsat_explanations/lsat-43-section-1-passage-4-questions/

Hey guys I have a question about #28. I thought it's not the degree of ownership that varies, it's the degree of use that varies, and depending on if it passes the mark as significant use or not, the institution either "asserts a claim to faculty's intellectual product" (line 41-42) or presumably not assert a claim if it's deemed not significant use. How can we say the degree of ownership varies? The passage never said how much of a claim depends on how much use, if significant use, the more of a claim. It only says asserts a claim if X, then it's reasonable to assume, if not X then not assert a claim. Either assert or not assert, not varying degrees of how much they assert a claim..

How can E be correct then?