the invention has been worked. If the invention is subject to an outstanding exclusive license at the time when it is shown that the invention has been worked, a license may be granted under this paragraph for any unexpired portion of the term of the patent upon the termination or the expiration of the exclusive license. (c) Exclusive license. (1) Each NASA invention which has not been worked by the end of the second year after the issuance of the United States patent thereon will be made available for the grant of an exclusive license to practice the invention. Exclusive licenses may be granted for the practice of inventions throughout the United States of America, its territories and possessions, or in any lesser geographic portion thereof. (2) The exclusive licensee will be selected in accordance with § 1245.206 (d). (3) The term of the license will be negotiated. (4) There will be reserved from the exclusive license a nontransferable, royalty-free right to practice the invention by or on behalf of the United States or any foreign government, international organization, or group of nations pursuant to any treaty or agreement with the United States. (5) The license will be nontransferable except to the successor of that part of the licensee's business to which the invention pertains. (6) The exclusive license will be revocable if the licensee fails to use his continuing best efforts to work the invention. § 1245.206 Procedures. (a) Submission of applications. Applications for a license under any NASA invention should be addressed to the Administrator, NASA. The application must identify the patent by number, title, and date, and state the type of license requested. (b) Applications for a nonexclusive license for the patent term. If the applicant requests a nonexclusive license for the term of a patent which is not listed as available for licensing under § 1245.204 (a) (2), the applicant, in addition to the requirements set forth in paragraph (a) of this section, shall furnish evidence that the invention has been worked. (c) Applications for an exclusive license. In addition to the requirements set forth in paragraph (a) of this section, an application for an exclusive license must: (1) Describe the applicant's capabilities to undertake the industrial and market development required to work the invention without undue delay, (2) State the expenditure which the applicant estimates to be required to develop the invention to the point where it is ready for working, and the applicant's intention to invest that sum of money in development of the invention if the license is granted, (3) Give the applicant's status, if any, as a small business firm or as being located in a surplus labor area, or both, (4) Indicate whether the applicant would be willing to accept an exclusive license for any geographic portion less than the entirety of the United States of America, its territories and possessions and, if so, define the geographic portion, and (5) State any other facts which the applicant believes would show it to be in the interests of the United States to grant an exclusive license rather than a nonexclusive license, and that such exclusive license should be granted to the applicant. (d) Processing of applications for an exclusive license. An exclusive license for a NASA invention will not be granted until after three months from the date on which the invention has been listed as available for exclusive licensing pursuant to § 1245.204 (a) (3) in order to provide a suitable time interval for all interested applicants to submit their applications. In carrying out the policy of the regulations in this Subpart 2, preference shall be given to adequately qualified applicants for an exclusive license in the following order of priority: (1) Persistent labor surplus area concerns which are also small business concerns, (2) Other persistent labor surplus area concerns, (3) Substantial labor surplus area concerns which are also small business concerns, (4) Other substantial labor surplus area concerns, and (5) Small business concerns which are not labor surplus area concerns. (e) Acceptance. All licenses shall become effective upon the written acceptance by the licensee of a license instru (a) All license instruments shall contain the following clauses: (1) Officials not to benefit clause. OFFICIALS NOT TO BENEFIT No member of or delegate to Congress, or resident commissioner, shall be admitted to any share or part of this license or to any benefit that may arise therefrom, but this provision shall not be considered to extend to this license if granted to a corporation for its general benefit. (2) Covenant against contingent fees clause. COVENANT AGAINST CONTINGENT FEES The licensee warrants that no person or selling agency has been employed or retained to solicit or secure this license upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the licensee for the purpose of securing business. For breach or violation of this warranty the licensor shall have the right to annul this license without liability. (3) Representation or warranty clause. REPRESENTATION OR WARRANTY The licensor makes no representation or warranty that the practice by the licensee of the invention licensed hereunder will be free from any infringement or charges of infringement of any other patent or patents, and licensor assumes no liability whatsoever that may result from the exercise of this license. (4) Dispute clause. DISPUTES All disputes concerning the interpretation or application of this license agreement which are not disposed of by mutual agreement shall be decided by the officer executing this license on behalf of the Government, or his successor, who shall reduce his decision to writing and mail or otherwise furnish a copy thereof to the licensee. His decision shall be final and conclusive, except on questions of law, unless, within 30 days from the date of receipt of such copy, the licensee mails or otherwise furnishes to him a written appeal addressed to the Administrator, National Aeronautics and Space Administration. The decision of the Administrator, or his duly authorized representative for the determination of such appeals, shall be final and con clusive, except on questions of law, unless determined by a court of competent jurisdiction to have been fraudulent, or capricious, or arbitrary, or so grossly erroneous as necessarily to imply bad faith, or not supported by substantial evidence. In connection with appeals under this clause, the licensee shall be afforded an opportunity to be heard and to offer evidence in support of its appeal. (b) Licenses granted under the provisions of § 1245.205(a) shall also contain the following clause: REVOCATION (a) This license may be revoked if the licensee fails to demonstrate before 19 (the end of the second year after issuance of the United States patent on the invention), that any embodiment or process of the invention has been developed to the point of commercial utility, and that the benefits of the developed invention have been offered to the public in accordance with normal business practice. (b) Before revoking this license for any cause, there will be furnished to the licensee a written notice of intention to revoke the license, and the licensee will be allowed 30 days after such notice in which to request a hearing before the Inventions and Contributions Board, National Aeronautics and Space Administration, on the question of whether the license should be revoked. (c) Licenses granted under the provisions of § 1245.205(c) shall also contain the following clauses: (1) Reporting clause. REPORTING Licensee is required to furnish to the Administration an annual report of all activity and progress in developing the invention to the point of commercial utility and in making the developed invention available to the public. The report shall be furnished not later than the 15th of March of each year and shall cover the activities of the preceding calendar year. (2) Sublicenses clause. SUBLICENSES Licensee may grant sublicenses. Each sublicense must make reference to the rights retained by the Government hereunder and a copy must be furnished to the Administration promptly upon execution. (3) Revocation clause. REVOCATION (a) This license may be revoked if the licensee at any time shall fail to use its best efforts to develop at least one embodiment or process of the invention to the point of commercial utility and to offer the benefits of the developed invention to the public in accordance with normal business practice. (b) If the licensee at any time shall default in making any report required hereunder, or shall make any false report, or shall commit any breach of any covenant or agreement herein contained, and shall fail to remedy any such default, false report, or breach within 30 days after written notice, this license may be revoked. (c) Before revoking the license herein granted for any cause, there will be furnished to the licensee and to all sublicensees a written notice of intention to revoke the license, and the licensee will be allowed 30 days after such notice in which to request a hearing before the Inventions and Contributions Board, National Aeronautics and Space Administration, on the question of whether the license should be revoked. Revocation of this license shall include revocation of all sublicenses which have been granted. (4) Nonexclusive license clause. NONEXCLUSIVE LICENSE Upon expiration of this license, the licensee and any sublicensees will be granted a nonexclusive license to practice the invention for the remainder of the term of the patent if the licensee has demonstrated that the invention has been worked prior to expiration of the exclusive license. (5) Litigation clause. LITIGATION The licensee shall, during the term of this license, have the right to sue at its own expense infringers of the patent licensed hereunder. The licensee may join the licensor, upon consent, as a party complainant in such suit, but without expense to the licen sor, and the licensee shall pay costs and any final judgment or decree that may be rendered against the licensor in such suit. If, as a result of any such litigation the aforesaid United States patent shall be declared invalid, the licensee shall have the right to surrender this license and be relieved from any further obligation hereunder. § 1245.208 Other licenses. Subject to any limitation in an outstanding exclusive license, nothing contained in these regulations shall preclude the Administrator, NASA, from granting other licenses when he determines that the interests of the United States would be served thereby. The following exemplify circumstances wherein such licenses may be granted: (a) In consideration of the settlement of an interference. (b) In consideration of a release of a claim of infringement. (c) In exchange for a license to the Government under adversely held patents. (d) Under improvement patents and inventions as a part of the consideration for a license granted to the Government. § 1245.209 Licenses to contractor-in ventor. For regulations governing licenses to contractors for inventions made in the performance of work under contracts of the Administration, see § 1245.111 of Subpart 1. CHAPTER XV-OFFICE OF THE UNDER SECRETARY OF COMMERCE FOR TRANSPORTATION, DEPARTMENT OF COMMERCE 1 1501.304 1501.305 Subpart B-War Risk Hull Insurance 1501.100 Amounts of insurance for which application may be made. 1501.101 Form of application. 1501.102 Issuance of interim binder: its terms and conditions. 1501.103 Sums which will be insured. 1501.104 Calculation of premiums. 1501.105 Additional war risk hull insurance. 1501.106 Standard forms of war risk hull insurance interim binders. 1501.107 Standard forms of war risk hull insurance policies. Subpart C-War Risk Liability Insurance, 1501.200 Limits of liability insurance for Issuance of interim binder: its 1501.203 1501.204 129 F.R. 526, Jan. 22, 1964. terms and conditions. Calculation of premiums. Standard forms of war risk carriers liability to cargo insurance interim binders. 1501.306 Standard forms of war risk carriers liability to cargo insurance policies. 1501.307 Effect on other General OrdersWar Risk Insurance. AUTHORITY: The provisions of this Part 1501 issued under sec. 1307, Federal Aviation Act, 1958; 72 Stat. 803; 49 U.S.C. 1537. SOURCE: The provisions of this Part 1501 appear at 28 F.R. 11618, Oct. 31, 1963. Subpart A-General § 1501.1 Eligibility of aircraft for insur ance. An aircraft is eligible for insurance if it is: (a) An American aircraft as defined in section 1301(a), Title XIII of the Federal Aviation Act of 1958, as amended; or (b) A foreign-flag aircraft engaged in aircraft operations deemed by the Under |