hospitalization for disabilities determined by the Veterans Administration under laws which it administers to be service connected (see § 1.602(b)), whether in the Veterans Memorial Hospital or in any other hospital in the Philippines which has a subcontract with the Philippine Government for hospitalization of veterans as described in this section.

§ 1.605 Hospitalization prior to determination by Veterans Administration

of legal eligibility and medical need. (a) The determination of legal eligibility and medical need for hospitalization of Commonwealth Army veterans for treatment of service-connected disabilities rests exclusively with the Veterans Administration.

(b) The Secretary of National Defense of the Philippine Government may, depending on the circumstances, either hospitalize a Commonwealth Army veteran prior to an official determination by the Veterans Administration of his legal eligibility and medical need; or require such determination prior to the furnishing of hospital care. However, no liability for reimbursement shall accrue to the Veterans Administration for any hospital care of a Commonwealth Army veteran until legal eligibility and medical need for hospital care have been determined by the Veterans Administration. When such determination has been made, reimbursement for the care furnished from the date of admission will be made, provided the Veterans Administration was notified within 72 hours from the date of admission. notification may be made by telephone, telegram, letter, etc. An exception to the 72-hour limitation may be made by the Clinic Director, Veterans Administration Regional Office, Manila, when the circumstances warrant the decision by him that delay in notification was fully justified. Reimbursement, otherwise, will be made from the date of receipt of such notification. Hospital care in the Philippines of Commonwealth Army veterans determined by the Veterans Administration to be in need of such care shall not be limited to the Veterans Memorial Hospital. Such facilities will be used, however, to the maximum extent feasible in the hospitalization of such veterans.

Such

[24 F.R. 10155, Dec. 16, 1959, as amended at 29 F.R. 10513, July 29, 1964]

§ 1.606 Determination of eligibility.

(a) Upon receipt of any application for hospitalization under the terms of the act the Veterans Administration shall make due and diligent effort to determine without delay the legal eligibility and medical need of the applicant for hospitalization. The Secretary of National Defense of the Philippine Government, or such other officer as he may designate, shall be furnished an official notification of the determination which has been made respecting such applicant's eligibility for such hospitalization.

(b) Determinations by the Department of Defense of the United States as to the military service shall be accepted by the Veterans Administration. In those cases in which Veterans Administration shall have information which it deems reliable and in conflict with the information upon which a determination was made, such cases, together with the information in the possession of the Veterans Administration, shall be referred to the Department of Defense of the United States for reconsideration and redetermination. Such determinations and redeterminations, respectively, as to military service shall be conclusive.

§ 1.607 Subcontracts.

The Secretary of National Defense of the Philippine Government, or such other officer as he may designate, may with the concurrence of the Veterans Administration, subcontract the hospital care and treatment of any eligible Commonwealth Army veteran suffering from leprosy, to other hospitals, under the same conditions and stipulations herein provided with reimbursement at actual cost and not to exceed the prevailing per diem rate in effect at the Veterans Memorial Hospital.

§ 1.608

Inspection of hospitals.

The Government of the United States, through such qualified persons as the Administrator of Veterans Affairs may designate shall have the right to inspect any hospital in which veterans are being hospitalized under the terms of 38 U.S.C. 633; to inspect and audit its books and all accounts as are incident to the proper determination of cost of and reimbursement, on a per diem basis for such hospitalization; and to determine whether the hospital facilities, procedures, techniques, hygiene and standards, as well as the quality of subsistence furnished, are adequate and proportionate to the

charges being made therefor. In the event that discrepancies or unsatisfactory conditions are found, the Secretary of National Defense of the Philippine Government shall be so advised, together with recommendations for corrective action. If corrective action is not accomplished further reimbursement payments may be discontinued for veterans hospitalized in the institution concerned. § 1.609 Extent of hospital treatment for Commonwealth Army veterans for which reimbursement will be made by the Veterans Administration. Treatment, including orthopedic and/ or prosthetic appliances, for which reimbursement will be made by the Veterans Administration, must be limited to diseases or injuries adjudicated by the Veterans Administration as service connected except as provided in § 1.610.

§ 1.610

Reimbursement for treatment of intercurrent disease or injury; adjunct treatment.

An intercurrent disease or injury is one which occurs in the course of another basic disease or injury. Such intercurrent disease or injury may be the result of the basic service-connected condition for which the patient is being treated, or related thereto. Reimbursement at the established per diem rate shall be made for the treatment of conditions which are the result of the basic serviceconnected condition, or which are adversely affecting such condition. Treatment of related conditions is known as adjunct treatment which is the term applied to the treatment of an intercurrent disorder which, although not service-connected is medically determined to be aggravating the basic service-connected disability. Reimbursement at the established per diem rate for adjunct treatment will not be made unless the basic service-connected condition is itself under treatment.

§ 1.611 Reimbursement basis.

(a) Payments for authorized hospital care and treatment will be made on an all-inclusive in-patient day cost basis.

(b) Reimbursement may be made at monthly or quarterly intervals.

(c) Separate invoices will be submitted monthly to cover hospital care for Commonwealth Army veterans. Payments made for care of these veterans will be made from the amounts provided by the appropriation acts of the Con

gress of the United States for hospital care in the Republic of the Philippines of Commonwealth Army veterans. The total charges for such care plus any authorized travel expenses incident to the hospitalization of such veterans shall in no event exceed the appropriation provided for any 1 fiscal year and in no event shall exceed $2,000,000 for any 1 fiscal year ending before July 1, 1963, nor $500,000 for any 1 fiscal year beginning on or after July 1, 1963.

(d) In computing the length of stay for which payment will be made, the day of admission will be counted, but not the day of discharge, death or transfer. When a veteran, hospitalized under these provisions, is absent from a hospital for a period longer than 24 hours, no payment will be made for his or her hospital care during such absence.

(e) During the contract period specified in § 1.600 (c) and upon request of the Philippine Government, reimbursements for medical services provided to Commonwealth Army veterans or to United States veterans may consist in whole or in part of available medicines, medical supplies, and equipment furnished by the Veterans Administration to the Veterans Memorial Hospital at valuations therefor as determined by the Administrator of Veterans Affairs, provided the valuations so determined shall not be less than the cost of the items furnished, including transportation. [29 F.R. 10155, Dec. 16, 1959, as amended at 29 F.R. 10513, July 29, 1964]

§ 1.613 Submission of information.

The Administrator of Veterans Affairs, upon his request, or the request of any officer duly designated by him for such purpose, shall be furnished full and complete cost accounting information, copies of medical examination and treatment reports, and any other information deemed by him to be necessary to the proper conduct of the program authorized by 38 U.S.C. 633.

and such approved forms shall be used wherever applicable in the general operation of such program.

§ 1.615

Outpatient treatment.

The Administrator of Veterans Affairs will for a period coterminous with the period covered by the contract referred to in § 1.600, provide medical outpatient treatment in the Republic of the Philippines for Commonwealth Army veterans determined by the Administrator of Veterans Affairs to be in need of such medical outpatient treatment for serviceconnected disabilities. Expenses incident to such treatment shall be borne by the Administrator of Veterans Affairs and shall not be chargeable to the $2,000,000 ceiling nor to the $500,000 ceiling for hospitalization and travel expenses of Commonwealth Army veterans referred to in § 1.600 (d).

[29 F.R. 10513, July 29, 1964]

The Administrator of Veterans Affairs, subject to the approval of the Director of the Bureau of the Budget, may amend the regulations pertaining to Grants to the Republic of the Philippines and promulgate and amend further regulations from time to time as in his judgment, circumstances require; Provided, That such amendment or regulation shall be consistent with the provisions of the "Agreement Between the Government of the United States of America and the Government of the Republic of the Philippines on the Use of the Veterans Memorial Hospital and the Provision of Medical Care and Treatment of Veterans by the Government of the Philippines, and the Furnishing of Grants-in-Aid Thereof by the Government of the United States of America," dated June 30, 1958, as amended June 28, 1963. [29 F.R. 10514, July 29, 1964]

INVENTIONS BY EMPLOYEES OF
VETERANS ADMINISTRATION

AUTHORITY: §§ 1.650 to 1.663 issued under sec. 1, 66 Stat. 811, 72 Stat. 1114; 35 U.S.C. 266, 38 U.S.C. 210, E.O. 9865, 12 F.R. 3907, 3 CFR 1943-1948 Comp., E.O. 10096, 15 F.R. 389, 3 CFR 1949-1953 Comp.

The purpose of the regulations concerning inventions by employees of the Veterans Administration is to prescribe the procedure to be followed in determining and protecting the respective rights of the United States Government and of Veterans Administration employees who make inventions.

$ 1.651 Definitions.

The terms as used in the regulations concerning inventions by employees of the Veterans Administration are defined as follows:

(a) The term "invention" includes any art, machine, manufacture, design, or composition of matter, or any new and useful improvement thereof, or any variety of plant, which is or may be patentable under the patent laws of the United States.

(b) The term "employee" or "Government employee" means any officer or employee, civilian or military, of the Veterans Administration. Part-time employees and part-time consultants are included, except when special circumstances in a specific case require the departure herefrom to meet the needs of the Veterans Administration, such circumstances to be reported to and approved by the Commissioner.

(c) The term "Commissioner" means the Commissioner of Patents, Department of Commerce, or his designee. [21 F.R. 10377, Dec. 28, 1956, as amended at 31 F.R. 5291, Apr. 2, 1966]

§ 1.652 Governing provisions.

(a) Executive Order 10096. Paragraph 1, Executive Order 10096, dated January 23, 1950 (15 F.R. 389, 3 CFR, 1949-1953 Comp., p. 292) as amended by Executive Order 10930, dated March 24, 1961 (26 F.R. 2583, 3 CFR, 1959-1963 Comp., p. 456), provides in part:

(a) The Government shall obtain the entire right, title and interest in and to all inventions made by any Government employee (1) during working hours, or (2) with a contribution by the Government of facilities, equipment, materials, funds, or information, or of time or services of other Government employees on official duty, or (3) which bear a direct relation to or are made in consequence of the official duties of the inventor.

(b) In any case where the contribution of the Government, as measured by any one or more of the criteria set forth in paragraph (a) last above, to the invention is insufficient equitably to justify a require

ment of assignment to the Government of the entire right, title and interest to such invention, or in any case where the Government has insufficient interest in an invention to obtain entire right, title and interest therein (although the Government could obtain same under paragraph (a), above), the Government agency concerned, subject to the approval of the Commissioner of Patents, shall leave title to such invention in the employee, subject, however, to the reservation to the Government of a nonexclusive, irrevocable, royalty-free license in the invention with power to grant licenses for all governmental purposes, such reservation, in the terms thereof, to appear, where practicable, in any patent, domestic or foreign, which may issue on such invention.

(c) In applying the provisions of paragraphs (a) and (b), above, to the facts and circumstances relating to the making of any particular invention, it shall be presumed that an invention made by an employee who is employed or assigned (1) to invent or improve or perfect any art, machine, manufacture, or composition of matter, (11) to conduct or perform research, development work, or both, (iii) to supervise, direct, coordinate, or review Government financed or conducted research, development work, or both, or (iv) to act in a liaison capacity among governmental or nongovernmental agencies or individuals engaged in such work, or made by an employee included within any other category of employees specified by regulations issued pursuant to section 4 (b) hereof, falls within the provisions of paragraph (a), above, and it shall be presumed that any invention made by any other employee falls within the provisions of paragraph (b), above. Either presumption may be rebutted by the facts or circumstances attendant upon the conditions under which any particular invention is made and, notwithstanding the foregoing, shall not preclude a determination that the invention falls within the provisions of paragraph (d) next below.

(d) In any case wherein the Government neither (1) pursuant to the provisions of paragraph (a) above, obtains entire right, title and interest in and to an invention nor (2) pursuant to the provisions of paragraph (b) above, reserves a non-exclusive, irrevocable royalty-free license in the invention with power to grant licenses for all governmental purposes, the Government shall leave the entire right, title and interest in and to the invention in the Government employee. subject to law.

(b) Executive Order No. 9865. Executive Order No. 9865 provides in part:

1. All Government departments and agencles shall, whenever practicable, acquire the right to file foreign patent applications on inventions resulting from research conducted or financed by the Government •

[21 F.R. 10377, Dec. 28, 1956, as amended at 31 FR. 5291, Apr. 2, 1966]

Any invention owned by the Government under the criteria given in paragraph 1(a) of Executive Order 10096 (15 F.R. 389, 3 CFR, 1949-1953 Comp., p. 292) shall be protected by an application for a domestic patent and other necessary documents executed by the inventor (employee) prepared by or through the General Counsel, unless some other agency has primary interest or it is decided to dedicate the invention to the public. Such dedication requires approval of the Commissioner. Applications on behalf of the Government for foreign patents may be made if determined to be in the public interest. The payment of necessary expenses in connection with any application filed or patent obtained under this section by the Veterans Administration is authorized.

[31 F.R. 5291, Apr. 2, 1966]

$ 1.655 Government license in invention of employee.

If an invention is made by an employee as to which he is entitled to full ownership under paragraph 1(b) of Executive Order 10096 (15 F.R. 389, 3 CFR, 19491953 Comp., p. 292) subject to a nonexclusive, irrevocable, royalty-free license in the Government with power to grant sublicenses for all Governmental purposes, it shall be the duty of the employee to make application for a U.S. patent, to execute all necessary documents, and to diligently prosecute such application at his own expense in instances in which either the Veterans Administration determines (insofar as its interest is concerned), or the Commissioner of Patents or other agency advises (insofar as other Government interest is concerned), that such action is necessary to protect the interest of the Government. Provided, however, That if the employee states that he is unwilling or

In the case of an invention or believed invention, the inventor will prepare a statement for submission to his immediate superior. It will be submitted regardless of where the ownership is believed to exist. The statement will consist of two parts:

(a) One part of the statement will be a disclosure of the invention sufficient to permit the preparation of a patent application. It will include ordinarily drawings or blueprints which contain reference numerals, such numerals being crossed to an accompanying explanatory list or description of the parts or components of the invention as shown on the drawings or blueprints, accompanied further by a description of the construction and operation of the invention. Photographs of the invention may be included. The inventor should state pertinent prior art known to him, and set forth in detail as clearly as possible the respects in which his invention differs.

(b) The other part of the statement will set forth the circumstances attending the making of the invention. It will include the full name and address of the inventor; the grade and title of his position; whether full time or part time; his duties at the time the invention was made; the facts pertinent to a determination whether the invention bore a direct relation to or was made in consequence of such official duties; whether there was, and if so, the terms of any special agreement or understanding with respect to use or manufacture of his invention; date of the invention; when and where it was conceived, constructed and tested; whether it was made entirely during working hours; whether there was a contribution by the Government of any of the following: Facilities; equipment; materials or supplies; funds; information; time or services of other Government employees on duty. If the inven

The inventor's immediate superior shall promptly review the statement of the employee for completeness and accuracy, and he shall certify that the employee's statement of circumstances attending the invention is or is not correct, giving reasons if pertinent. The file should then be submitted through the station head (or department heads or top staff officials in the case of Central Office employees) to the General Counsel together with comments and recommendations, including whether the invention is used or is likely to be used in the public interest, and any such additional information as may be deemed helpful or necessary. The General Counsel will assemble the evidence bearing upon this question.

[31 F.R. 5291, Apr. 2, 1966]

§ 1.658 Determination of rights.

The General Counsel will make a determination of rights, subject to review where required by the Commissioner. The determination may be that title is in the Government, that title is in the employee, or that the employee is entitled to commercial rights and the Government to a license, depending on the facts. The employee has a right of appeal to the Commissioner within 30 days from the determination of the General Counsel. The decision reached by the General Counsel or by the Commissioner, as the case may be, will be communicated to the employee.

[31 F.R. 5291, Apr. 2, 1966]

§ 1.659 Relationship to incentive awards

program.

Procedures set out in the regulations concerning inventions by employees of the Veterans Administration are not affected by the submission or proposed submission of an employee suggestion or idea on an item which may be patentable. Consideration of an item for patentability and also for an incentive award may proceed simultaneously, usually on separate correspondence. An employee