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AMEND ATOMIC ENERGY ACT OF 1946

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"e. Notwithstanding the provisions of sections subsections a. and b. of this section, a majority of the members of the Commission shall certify those specific positions which are of a high degree of importance or sensitivity and upon such certification the investigation and reports required by such provisions shall be made by the Federal Bureau of Investigation rather than instead of by the Civil Service Commission.

"f. The Commission shall establish standards and specifications in writing as to the scope and extent of investigations to be made by the Civil Service Commission pursuant to subsections a. and b. of this section. Such standards and specifications shall be based on the class and location of the work to be done, and shall, among other considerations, take into account the degree of importance to the common defense and security of the restricted data to which access will be permitted. "SEC. 143. DEPARTMENT OF DEFENSE PARTICIPATION.

"a. The Commission may authorize any of its employées, or employees of any contractor, prospective contractor, licensee or prospective licensee of the Commission to permit any employee of an agency of the Department of Defense or of its contractors or any member of the Armed Forces to have access to restricted data required in the performance of his duties and so certified by the head of the appropriate agency of the Department of Defense or his designee: Provided, That the head of the appropriate agency of the Department of Defense or his designee has determined, in accordance with the established personnel security procedures and standards of such agency, that permitting the member or employee to have access to such restricted data will not endanger the common defense and security: And provided further, That the Commission finds that the established personnel and other security procedures and standards of such agency are adequate and in reasonable conformity to the standards established by the Commission under section 142.

"b. In the case of restricted data which the Commission and the Department of Defense jointly determine to relate primarily to the military utilization of atomic weapons, the determination that such data may be published without adversely affecting the common defense and security shall be made by the Commission and the Department of Defense jointly, and if the Commission and the Department of Defense do not agree, the determination with respect to either such determination shall be made by the President.

"SEC. 144. INTERNATIONAL COOPERATION.—

a. Nothing contained in this Act shall prohibit the Commission from cooperating with another nation and communicating to that nation restricted data on―

“(1) refining, purification and subsequent treatment of source materials;

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(2) reactor development;

(3) production of special material;

"(4) health and safety;

"(5) industrial and other applications of atomic energy for peaceful purposes; and

"(6) research and development relating to the foregoing: Provided, however, That no such cooperation shall involve the communication of restricted data relating to the design or fabrication of

atomic weapons; And provided further, That the cooperation is undertaken pursuant to an agreement entered into in accordance with section 123.

"b. Nothing contained in this Act shall prohibit the President from authorizing the Commission to cooperate with another nation or with a regional defense organization of which the United States is a party, by communicating to that nation or organization any restricted data necessary to—

"(1) the development of defense plans;

"(2) the training of personnel in the employment of and defense against atomic weapons; and

“(3) the evaluation of the capabilities of potential enemies in the employment of atomic weapons,

while such other nation or organization is participating with the United States, pursuant to an international arrangement, by substantial and material contributions to the mutual defense and security: Provided, however, That the cooperation shall not involve disclosure of restricted data on the design and fabrication of atomic weapons except with regard to the external size, weight and shape thereof: And provided further, That the cooperation is undertaken pursuant to an agreement entered into in accordance with section 123. “SEC, 145. GENERAL PROVISIONS.

"a. Sections 141-144, inclusive, shall not exclude the applicable provisions of any other laws, except that no Government agency shall take any action under such other laws inconsistent with the provisions of this section.

"b. The Commission shall have no power to regulate information other than that power specifically granted by this Act except that it may control the defense information for which it is responsible.

"c. No restricted data shall be so classified for more than three years after its origination or after its redesignation unless there is a specific finding made within six months preceding the end of any such threeyear period that the common defense and security require that that restricted data retain its classification for an additional period of up to three years beyond the end of the preceding period.

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"CHAPTER 14. PATENTS AND INVENTIONS

"SEC. 151. PRODUCTION AND MILITARY UTILIZATION.

“a. No patent shall hereafter be granted for any invention or discovery which is useful solely in the production of fissionable material or in the utilization of special material in atomic weapons or in the utilization of special material or atomic energy for in an atomic weapon. Any patent granted for any such invention or discovery is hereby revoked, and just compensation shall be made therefor.

"b. No patent hereafter granted shall confer any rights with respect to any invention or discovery to the extent that such invention or discovery is used in the production of fissionable material or in the utilization of special material or atomic energy in atomic weapons. Any rights conferred by any patent heretofore granted for any invention or discovery are hereby revoked to the extent that such invention or discovery is so used and just compensation shall be made therefor. "c. Any person who has made or hereafter makes any invention or discovery useful in the production of fissionable material or in the utilization of special material in atomic weapons or in the utilization of special material or atomic energy for in an atomic weapon shall file with the Commission a report containing a complete description thereof, unless such invention or discovery is described in an application for a patent filed in the Patent Office by such person within the time required for the filing of such report. The report covering any such invention or discovery shall be filed on or before whichever of the following is the latest: (A) The sixtieth day after the date of enactment of this Act; (B) the sixtieth day after the completion of such invention or discovery; or (C) the sixtieth day after such person first discovers or first has reason to believe that such invention or discovery is useful in such production or utilization.

"SEC. 152. USE OF INVENTIONS FOR RESEARCH.-No patent hereafter granted shall confer any rights with respect to any invention or discovery to the extent that such invention or discovery is used in the conduct of research or development activities in the fields specified in section 31. Any rights conferred by any patent heretofore granted for any invention or discovery are hereby revoked to the extent that such invention or discovery is so used, and just compensation shall be made therefor.

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"(e) NONMILITARY UTILIZATION.

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"(1) It shall be the duty of the Commission to declare any patent to be affected with the public interest if (A) the invention or diseevery covered by the patent utilizes or is essential in the utilization of fissionable material or atomie energy; and (B) the licensing of such invention or discovery under this subsection is necessary to effeetuate the policies and purposes of this Aet.

"(2) Whenever any patent has been declared, pursuant to paragraph (1), to be affected with the publie interest

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"(A) The Commission is hereby licensed to use the invention or discovery covered by such patent in performing any of its powers under this Act; and

"(B) Any person to whom a license has been issued under seetion 7 is hereby licensed to use the invention or discovery covered by such patent to the extent such invention or discovery is used by him in carrying on the activities authorized by his license under section 7. The owner of the patent shall be entitled to a reasonable royalty fee for any use of an invention or discovery licensed by this subsection. Such royalty fee may be agreed upon by such owner and the licensee, or in the absence of such agreement shall be determined by the Commission.

"(3) No court shall have jurisdiction or power to stay, restrain, or otherwise enjoin the use of any invention or discovery by a licensee, to the extent that such use is licensed by paragraph (2) above, on the ground of infringement of any patent. If in any action for infringe ment against such licensee the court shall determine that the defendant is exercising such license, the measure of damages shall be the royalty fee determined pursuant to this section, together with such costs, interest, and reasonable attorney's fees as may be fixed by the court. If no royalty fee has been determined, the court shall stay the proeeeding until the royalty fee is determined pursuant to this section. If any such licensee shall fail to pay such royalty fee, the patentee may bring an action in any court of competent jurisdiction for such royalty fee, together with such costs, interest, and reasonable atterney's fees as may be fixed by the court.

"SEC. 153. ACQUISITION OF PATENTS.-The Commission is authorized to purchase, or to take, requisition, or condemn, and make just compensation for, (1) any invention or discovery which is useful in the utilization of special material in atomic weapons or in the the utilization of special material or atomic energy for in an atomic weapon the production of fissionable material or in the utilization of fissionable material or atomie energy for a military weapon, or which utilizes or is essential in the utilization of fissionable material or atomic energy, or (2) any patent or patent application covering any such invention or discovery. The Commissioner of Patents shall notify the Commission of all applications for patents heretofore or hereafter filed which in his opinion disclose such inventions or discoveries and shall provide the Commission access to all such applications..

"SEC. 154. COMMISSION PATENT PERMITS.-The Commission shall establish standard specifications, including a reasonable royalty fee, upon which it may grant a permit to use any patent held by the Commission. Such a permit shall not waive any of the licensing provisions of this Act.

"SEC. 155. COMPENSATION AWARDS, AND ROYALTIES.

"a. PATENT COMPENSATION BOARD. The Commission shall designate a Patent Compensation Board, consisting of two or more employees of the Commission, to consider applications under this subsection.

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"a. ELIGIBILITY.

(A) Any owner of a patent licensed under subsection (e) (2) or any licensee thereunder may make application to the Com

AMEND ATOMIC ENERGY ACT OF 1946

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mission for the determination of a reasonable royalty fee in accordance with such procedures as it by regulation may establish.

"A) Any person seeking to obtain the just compensation provided in sections 151–153 shall make application therefor to the Commission in accordance with such procedures as it the Commission may by regulation establish.

"(B) Any person making any invention or discovery useful in the production of fissionable material or in the utilization of fissionable material or atomie energy for a military weapon whe is not entitled to compensation therefor under section 151 and who has complied with section 151 e above may make application to the Commission for, and the Commission may grant, an award. "(D) Any person making application under this subsection shall have the right to be represented by counsel.

"b. STANDARDS.—

"(A) In determining such reasonable royalty fee, the Commission shall take into consideration any defense, general or special, that might be pleaded by a defendant in an action for infringement, the extent to which, if any, such patent was developed through federally financed research, the degree of utility, novelty, and importance of the invention or discovery, and may consider the cost to the owner of the patent of developing such invention or discovery or acquiring such patent.

"(B) In determining what constitutes just compensation under section 151, 152, or 154 above, the Commission shall take into account the considerations set forth in paragraph (A) above, and the actual use of such invention or discovery, and may determine that such compensation be paid in periodic payments or in a lump

sum.

“(C) In determining the amount of any award under section 155 b., the Commission shall take into account the considerations set forth in paragraph (A) above, and the actual use of such invention or discovery. Awards so made may be paid by the Commission in periodic payments or in a lump sum.

“d. JUDICIAL REVIEW. Any person aggrieved by any determination of the Commission of an award or of a reasonable royalty fee may obtain a review of such determination in the Court of Appeals for the District of Columbia by filing in such court, within thirty days after notice of such determination, a written petition praying that such determination be set aside. A copy of such petition shall be forthwith served upon the Commission and thereupon the Commission shall file with the court a certified transcript of the entire record in the proceeding, including the findings and conclusions upon which the determination was based. Upon the filing of such transeript the court shall have exclusive jurisdiction upon the record eertified to it to affirm the determination in its entirety or set it aside and remand it to the Commission for further proceedings. The findings of the Commission as to the facts, if supported by substantial evidence, shall be conclusive. The court's judgment shall be final, subject, however, to review by the Supreme Court of the United States upon writ of certiorari on petition therefor under section 1254 of the Judicial Code (U. S. C., title 28, see: 437), by the Commission or any party to the court proceeding.

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