REPORTS TO THE CONGRESS

SEC. 9. The head of each agency which awards any contracts of the class described in section 3(a) shall submit semiannual reports to the Congress containing

(a) the number of contracts executed for each of the subsections (a), (b), and (c) of section 4, and the number of inventions disclosed pursuant to such contracts;

(b) the number and general nature of such inventions with respect to which the agency acquired no greater rights than a royalty-free license in accordance with section 4, and a summary of the findings of fact upon which such determinations were made; and

(c) the number and general nature of such inventions with respect to which the agency has acquired greater rights than a royalty-free license in accordance with section 4.

SEVERABILITY CLAUSE

SEC. 10. If any provision of this Act, or the application of such provision to any person or circumstance, is held invalid, the remainder of this Act or the application of such provisions to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby.

TECHNICAL AMENDMENTS

SEC. 11. (a) Section 10 (a) of the Act of June 29, 1935, as added by section 101 of the Act of August 14, 1946 (60 Stat. 1085, as amended; 7 U.S.C. 4271(a)) is amended by striking out the following language: "Any contracts made pursuant to this authority shall contain requirements making the results of research and investigations available to the public through dedication, assignment to the Government, or such other means as the Secretary shall determine."

(b) The National Science Foundation Act of 1950 is amended by striking out section 12 thereof (42 U.S.C. 1871).

(c) The Atomic Energy Act of 1954 is amended by striking out section 152 thereof (42 U.S.C. 2182).

(d) The National Aeronautics and Space Act of 1958 is amended by(1) striking out section 305 thereof (42 U.S.C. 2457); and

(2) by striking out in section 306 "the Inventions and Contributions Board, established under section 305 of this Act," and inserting in lieu thereof "an Inventions and Contributions Board which shall be established by the Administrator within the Administration."

(e) The Coal Research and Development Act of 1960 (74 Stat. 336) is amended by striking out section 6.

(f) The Helium Act Amendments of 1960 (74 Stat. 918) is amended by striking out the following language in section 4: "Provided, however, That all research contracted for, sponsored, cosponsored, or authorized under authority of this Act shall be provided for in such a manner that all information, uses, products, processes, patents, and other developments resulting from such research developed by Government expenditure will (with such exceptions and limitations, if any, as the Secretary may find to be necessary in the interest of national defense) be available to the general public: And provided further, That nothing contained herein shall be construed as to deprive the owner of any background patent relating thereto to such rights as he may have thereunder."

(g) The Saline Water Conversion Act of 1961 (75 Stat. 628) is amended by striking out section 4(b).

(h) The Arms Control and Disarmament Act of 1961 (75 Stat. 631) is amended by striking out section 32.

(i) The Water Resources Research Act of 1964 (78 Stat. 329) is amended by striking out section 303.

(j) The Appalachian Regional Development Act of 1965 (79 Stat. 20) is a mended by striking out section 302 (d).

EFFECTIVE DATE

SEC. 12. This Act shall take effect on the first day of the fourth month beginning after the date of enactment of this Act.

[S. 1899, 89th Cong., 1st sess.]

A BILL To prescribe a national policy with respect to the acquisition, disposition, and use of proprietary rights in inventions made, and in scientific and technical information obtained, through the expenditure of public funds, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Federal Inventions Act".

SEC. 2. As used in this Act

DEFINITIONS

(a) The term “Administration" means the Federal Inventions Administration. (b) The term "Administrator" means the Administrator of Federal Inventions.

(c) The term "executive agency" includes any executive or militray department of the United States, any independent establishment (other than the Administration) in the executive branch of the Government, the Government Printing Office, the Library of Congress, and any wholly owned Government corporation.

(d) The term "agency head" means the head of any executive agency, except that (1) the Secretary of Defense shall be the agency head of the Department of Defense and of each military department thereof, and (2) in the case of any authority, commission, or other agency control over which is exercised by more than one individual such term means the body exercising such control.

(e) The term "contract" means any actual or proposed contract, agreement, commitment, understanding, or other arrangement entered into by any executive agency with any other person for the acquisition of any property by or on behalf of any executive agency or for the rendition of any service for or on behalf of any executive agency, and includes any assignment, substitution of parties, or subcontract of any tier executed or entered into for or in connection with the performance of that contract.

(f) The term "person" includes any individual and any corporation, partnership, firm, association, institution, or other entity.

(g) The term "invention" means any invention, discovery, improvement, or innovation, without regard to the patentability thereof.

(h) The term "class", when used with regard to inventions, means any class or subclass of inventions under the classification system of the Patent Office. (i) The term "made", when used in relation to any invention, means the conception or first actual reduction to practice of such invention.

PROPRIETARY INTEREST OF THE UNITED STATES IN INVENTIONS

SEC. 3. (a) The United States shall have exclusive right and title to any invention made by any officer or employee of the United States or any executive agency if

(1) the invention was made in the performance by such officer or employee of duties which he was employed or assigned to perform, and was made during working hours or with a contribution by the Government of (A) the use of Government facilities, equipment, materials, or funds, (B) information in which the Government had a proprietary interest, or (C) the services of any officer or employee of the Government during working hours;

or

(2) the officer or employee who made such invention was employed or assigned to perform research, development, or exploration work and the invention is directly related to the work he was employed or assigned to perform or was made within the scope of the duties of his employment. (b) The United States shall have exclusive right and title to any invention made by any person if the invention was made in the course of or in consequence of any scientific or technological research, development, or exploration activity undertaken by that person or any other person for the performance of any obligation arising directly or indirectly from any contract or lease entered into, or any grant made, by or on behalf of any executive agency.

(c) Notwithstanding any other provision of law, any patent issued by the Commissioner of Patents for any such invention shall be issued or assigned by the Commissioner to the United States upon application made by the Administrator and without payment by him of any fee or compensation.

(d) Nothing contained in this Act shall deprive any person of any right or interest duly acquired in or with respect to any patent issued for any invention

not made in the course of or in consequence of any scientific or technological research, development, or exploration activity undertaken by any person for the performance of any obligation arising directly or indirectly from any contract or lease entered into, or any grant made, by or on behalf of any executive agency.

FEDERAL INVENTIONS ADMINISTRATION ESTABLISHED

SEC. 4. (a) There is hereby established in the executive branch of the Government the Federal Inventions Administration. It is the duty of the Administration, in the performance of its functions, to

(1) stimulate invention within the United States and encourage the disclosure of inventions;

(2) protect, promote, and administer the proprietary interests of the United States with respect to inventions made and scientific and technological information obtained through activities conducted by executive agencies and through contracts and leases entered into and grants made by or on behalf of such agencies; and

(3) promote to the greatest practicable extent widespread use in industry and agriculture of inventions made through the expenditure of public funds.

(b) The Administration shall be headed by an Administrator of Federal Inventions, who shall be appointed by the President, by and with the advice and consent of the Senate, and shall receive compensation at the rate prescribed for level III of the Federal Executive Salary Schedule.

(c) There shall be in the Administration a Deputy Administrator of Federal Inventions who shall be appointed by the President, by and with the advice and consent of the Senate, and shall receive compensation at the rate prescribed for level IV of the Federal Executive Salary Schedule. The Deputy Administrator shall perform such duties and exercise such powers as the Administrator shall prescribe. During the absence or disability of the Administrator, or in the event of a vacancy in the office of the Administrator, the Deputy Administrator shall act as Administrator.

(d) There shall be in the Administration a General Counsel who shall be appointed by the President, by and with the advice and consent of the Senate, and who shall receive compensation at the rate prescribed for level V of the Federal Executive Salary Schedule. The General Counsel shall be the chief legal officer of the Administration, and shall perform such duties as the Administrator may direct. During the absence or disability, or in the event of vacancies in the offices, of the Administrator and the Deputy Administrator, the General Counsel shall act as Administrator.

(e) The Administrator, Deputy Administrator, and the General Counsel may not engage in any other business, vocation, or employment while serving as such. No individual shall be appointed or serve as an officer or employee of the Administration

(1) while he holds legal title to, or beneficial equitable interest in, share capital (A) exceeding in market value $1,000 in any corporation engaged in the performance of any scientific or technological research, development, or exploration activity pursuant to any obligation arising directly or indirectly from any contract or lease entered into by or on behalf of any executive agency, or (B) exceeding in market value $5,000 in more than one such corporation; or

(2) if within five years he has served as an officer or director of any such corporation; or

(3) if within five years he has been affiliated in any capacity with any partnership, association, institution, or other legal entity which is engaged or at any time during such affiliation was engaged in the performance of any scientific or technological research, development, or exploration activity pursuant to any obligation arising directly or indirectly from any contract or lease entered into or grant made by or on behalf of any executive agency.

POWERS AND DUTIES OF THE ADMINISTRATOR

SEC. 5. (a) The Administrator shall be responsible for the exercise of all powers and the discharge of all duties of the Administration and shall have authority to direct and supervise all personnel and activities thereof.

(b) The Administrator is authorized, subject to the civil-service laws and the Classification Act of 1949, as amended, to appoint and fix the compensation of

such personnel as may be required for the performance of the functions of the Administration. The Administrator may procure, without regard to the provisions of the civil-service laws or the Classification Act of 1949, as amended, the temporary and intermittent services of individuals and organizations to the same extent as authorized for executive departments by section 15 of the Act of August 2, 1946 (60 Stat. 810), but at rates not to exceed $75 per diem for the personal services of individuals. With the prior consent of the agency head of any executive agency, the Administrator may (1) utilize the services, information, and facilities of any such agency, and (2) employ on a rembursable basis the services of such personnel of any such agency as the Administrator deems advisable.

(c) The Administrator may establish such advisory committees as he may determine to be appropriate to provide to the Administration necessary consultation, advice, and information relating to its functions and the performance thereof.

(d) The Administrator may promulgate such rules and regulations as may be necessary to carry out the functions vested in him or in the Administration, and he may delegate authority for the performance of any such function to any officer or employee under his direction and supervision.

(e) Upon request made by the agency head of any executive agency (other than the Administration), the Admnistrator may delegate to such agency head authority for the administration of any proprietary interest of the United States in any invention or class of inventions if the Administrator determines that such other executive agency possesses special qualification to carry into effect the purposes of this Act with respect to such proprietary interest of the United States. Any such delegation of authority shall be conditioned upon

(1) compliance by such other executive agency with such general policies for the admnistration of that proprietary interest as the Administrator shall establish from time to time in conformity with the provisions of this Act; and

(2) the furnishing by such other executive agency to the Administrator of such periodical and special reports concerning the administration of that proprietary interest as the Administrator shall prescribe from time to time.

(f) The Administrator shall

(1) prescribe such rules and regulations as he determines to be required for the fulfillment by executive agencies of their obligations under any provision of law relating to the proprietary interests of the United States in inventions and in scientific and technological information; and

(2) conduct from time to time such studies and investigations of the policies and practices of executive agencies relating to the proprietary interests of the United States with regard to inventions and scientific and technological information as he determines to be required for the performance of the duties of the Administration.

(g) Upon request made by the Administrator, the Commissioner of Patents and each executive agency shall furnish to the Administration such information and documents (including pending patent applications) as the Administrator may determine to be required for the performance of the duties of the Administration under this Act. Upon request made by the Administrator, the Attorney General shall initiate and conduct such legal proceedings as may be required for the protection and preservation of the proprietary interest of the United States in any invention or with respect to any scientific or technological information.

(h) The Administrator shall cause a seal of office to be made for the Administration of such design as the President shall approve, and judicial notice shall be taken thereof.

(i) The Administrator shall transmit to the Congress in January of each year a report which shall include

(1) a comprehensive description of the activities and accomplishments of the Administration during the preceding calendar year;

(2) a detailed statement of the nature and effect of any disposal made during the preceding calendar year of any proprietary rights of the United States in inventions or scientific or technological information; and

(3) such recommendations for additional legislation as he may determine to be necessary or desirable to protect the proprietary interests of the United States with respect to inventions and scientific and technological information.

(j) Upon request made by the chairman of any committee of the Congress having jurisdiction over the subject matter, or the chairman of any duly authorized subcommittee thereof, the Administrator shall conduct such special studies, make such special reports, and furnish such information to such committee or subcommittee as such committee or subcommittee may determine to be required for the discharge of its responsibilities concerning the proprietary interests of the United States with respect to inventions and scientific and technological information obtained through the performance of services under contracts and leases entered into and grants made by executive agencies.

ADMINISTRATION OF PATENT RIGHTS OF THE UNITED STATES

SEC. 6. (a) The Administrator shall—

(1) make application to the Commissioner of Patents, and when determined by the Administrator to be in the interest of the United States to the appropriate officers of foreign governments, for the issuance to the United States of patents upon patentable inventions as to which the United States has proprietary rights;

(2) take such action as may be required for the prosecution of those applications in the interest of the United States;

(3) take title in the name of the United States to all patents issued or assigned to, and all interests in patents, proprietary rights to inventions, and technical information with respect to inventions acquired by, the United States or any executive agency; and

(4) maintain custody of and control over all documents evidencing the title or interest possessed by the United States with respect to any patent. (b) The Administrator shall take such action as he determines to be required to

(1) protect and preserve the proprietary rights of the United States with respect to patents, inventions, and scientific or technological information; and

(2) effectuate the dedication for public use of the proprietary rights of the United States with respect to any patent if he determines that such action will best promote the public policy declared by this Act.

COLLECTION AND DISSEMINATION OF SCIENTIFIC AND TECHNOLOGICAL INFORMATION SEC. 7. (a) The Administration shall

(1) prepare and maintain such indexes and other compilations of information as may be required to determine the nature and scope of the proprietary interests of the United States in inventions and in scientific and technical information;

(2) provide suitable repositories for, and schedules and compilations reflecting the nature and scope of, technical information obtained by the United States through the scientific and technological activities conducted by executive agencies and by other organizations incident to the performance of services under contracts and leases entered into and grants made by or on behalf of executive agencies; and

(3) make available to each executive agency (including the military departments) all scientific and technical information available to the Administrator which may have value to such executive agency in the performance of its functions.

(b) In order to provide for the prompt public dissemination, to the maximum extent consistent with the requirements of military security, of scientific and technological information, and to promote the widest and fullest possible use thereof in the public interest, the Administration shall—

(1) obtain, assemble, and classify available publications and other information concerning inventions and discoveries which may provide assistance for inventors, small business organizations, and the general public;

(2) evaluate all scientific and technological information available to the Administration to determine its probable application to commercial uses in the development of new and better products and advanced technological methods of production;

(3) compile, publish, and provide for the greatest practicable distribution to libraries, trade associations, and organizations engaged in trade and industry of publications disclosing the results of such evaluation to the end that inventors and industrial and trade organizations may receive promptly