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result from research which is supported Mr. STAGGERS. Yes. The Senate by Federal funds will be made freely and had taken a rollcall vote on this separate fully available to the general public. feature. They gave in to us on many

Mr. GROSS. What was the one area things, and we were trying to get our bill. in disagreement?

We did, almost in its entirety. We beMr. STAGGERS. The one area we leve it is even a stronger bul than the had to give in on, and we did, was with one we had to start with. respect to patents. The Senate was quite adamant on it.

Mr. GROSS. Patents?

House Committee Report House Report 1776, Pages 19 and 21

Patent problem.-In considering this legislation and specifically the safety standards which will result therefrom the committee was aware of the complexities which may arise from standards requiring the use of patented processes or equipment. The committee determined that rather than report a provision which would directly affect patent law it would be more appropriate to leave this problem to a case-by-case determination. In a particular case the courts can and no doubt will consider the various equities of the parties and the public prior to enjoining the infringement of a patent. Il infringement of a patent is required to meet a Federal safety standard, the court may well limit the patentee to damages. See City of Milwaukee v. Activated Sludge, Inc., 69 F. 2d 577 (C.A. :7, 1934).

21

RESEARCH, TESTING, AND TRAINING Section 106 of the reported bill requires the Secretary to conduct all research, testing, development, and training necessary to carry out this title including specifically (1) the collection of data for the purpose of determining the relationship between vehicle or equipment performance and (A) accidents and (B) deaths and personal injuries resulting from accidents; (2) procuring experimental vehicles and equipment whether by negotiation or otherwise; and (3) selling or otherwise disposing of test vehicles and equipment. The Secretary is further authorized to conduct any of this research, testing, development, or training by making grants to State, interstate agencies, and nonprofit institutions.

This section requires the Secretary to undertake a broad-scale research, testing, development, and training program for the purpose of acquiring information and knowledge necessary to relate directly motor vehicle and equipment performance characteristics to accidents involving vehicles and the resultant deaths and injuries. Testimony established the necessity to distinguish between accidents and the injuries and deaths which result from accidents. This difference has been described in terms of a "first collision” and a “second collision.” Two of the principal goals sought by this legislation are (1) to reduce

the number of accidents through improvement in vehicle and equipment performance and (2) to minimize the consequences of the impact of a driver or passenger in a vehicle with the interior of the vehicle or with some other object in the case of ejection from the vehicle as the result of an accident.

The Secretary is directed to obtain experimental and other vehicles and equipment for research and testing purposes. He is given considerable latitude in this regard and he may obtain experimental vehicles or experimental equipment through negotiation, contract, direct grant, or in any other appropriate manner. The committee expects that the utilization of experimental vehicles and equipment would be well underway within a year from the date of enactment of this title and that in establishing and carrying out research and development programs, the Secretary will coordinate his actions to the fullest extent possible with appropriate State programs.

The Secretary is authorized to sell or otherwise dispose of experimental vehicles and equipment after they have served the purpose for which they were acquired and to credit the proceeds to the current appropriations available for this title.

Senate Passed Act

Congressional Record-Senate
June 24, 1966, 14257

Research, development, testing and evalua. pursuant to subsection (2), notwithstanding tion

any other provision of law, and reimbursing SEC. 106. (a) The Bocretary, in cooperation the proceeds of such sale or disposal into the with other departments and agencies of the appropriation or fund current and available Federal Government is authorized to under for the purpose of carrying out this title: take appropriate research, development, test. Provided, That motor vehicles and motor ing and evaluation for motor vehicle safety equipment which have bcen rendered ireparand motor vehicle safety standards to ac

ably unsafe for use on the highways, by test. complish the purposes of this Act and. in ing pursuant to subsection (2), shall be sold exercising this authority, may perform the

or disposed of in a manner insuring that following functions:

they shall not be used on the highways or on (1) gathering or collecting existing data vehicles for use on the bighways; from any source for the purpose of deter (4) performing or having performod all mining the relationship between motor ve research. devolopment, evaluation and inbicle or motor vehicle equipment perform

formation gathering and disseminating ance characteristics and (A) accidents activities necessary and appropriate for involving motor vehicles, and (B) the occur. motor vehicle safety and motor vehicle rence of death or personal injury resulting safety standards, and purchasing or acquiring from such accidents;

equipment and facilities related thereto, or (2) purchasing, notwithstanding any other fabricating needed motor vebicle oquipment provision of law, commercially available to accomplish the purposes of this title, models of motor vehicles or items of motor

includingvehicle equipment, and contracting for the (A) relating motor vebicle and motor fabrication of motor vehicle equipment, for vehicle equipment performance character. research and testing purposes, including the

istics to motor vehiclo safety; testing of motor vehicles and motor vehicle

(B) determining the elects of wear and equipment to accomplish the purposes of

use of motor vehicles and motor vehicle this Act even though such tests may damage

equipment upon motor vehicle safety; or destroy the vehicles or equipment being

(C) evaluating and developing methods tested;

and equipment for testing. Inspecting, and (3) selling or otherwise disposing of motor

determining safety of motor vehicles and vehicles or motor vehicle equipment tested motor vehicle equipment;

(D) evaluating and developing methods and equipment for determining adequacy of motor vehicle safety standards, and compliance of motor vehicles with motor vehicle standards; and

(E) developing appropriate motor vehicle safety standards; and

(5) awarding grants to State or Interstate agencies and nonprofit institutions for performance of activities authorized in this section.

(b) The Secretary may, by means of grant or contract, design, construct and test op erational passenger motor vehicles and items of motor vehicle equipment in demonstr&tion quantities, embodying such features as the Secretary determines will assist in care rying out the purposes of this Act. Such vehicles or equipment are to serve as demonstrations for the development of safety features applicable to commercially manufactured motor vehicles or items of motor vehicle equipment, and for the development

of Federal motor vehicle safety standards
under section 103. Such demonstration ve-
bicles or equipment shall not be sold or
leased for private use. Such demonstration
vehicles shall not be limited to traditional
methods of automobile design, styling, test-
ing, or production.

(c) Whenever the Federal contribution
for any research or development activity au-
thorized by this Act encouraging motor
vehicle safety 18 more than minimal, the
Secretary shall include in any contract,
grant, or other arrangement for such re-
search or development activity, provisions
effective to insure that all information, ubes,
processes, patents, and other developments
resulting from that activity will be made
freely and fully available to the general
public. Nothing herein shall be construed
to deprive the owner of any background
patent of any right which he may have
thereunder.

Senate Debate

Congressional Record-Senate
June 24, 1966, 14237-14244

14238

Mr. COTTON. I join the chairman of The subsection requires that any patthe committee, the Senator from Wash- ent developed with the aid of a Federal ington, in saying to the Senator from contribution must be made freely and New Jersey, that this amendment makes fully available to the general public a distinct improvement to the bill.

unless the Federal contribution is miniMr. President, other Senators may wish mal—whatever that might mean. to speak later about the pending patent Plausible as this might seem at first amendment. However, having offered glance, its real effect is liable to defeat the amendment on behalf of the Senator the main purpose of the bill. Consider, from Pennsylvania (Mr. SCOTT) and for instance, the position of a firm or an other Senators, I should like to make a individual with highly promising Ideas brief statement.

for a safety development who needs adAt the eleventh hour, the committee ditional research funds to complete His tacked onto the bill, as section 106(c), research and development work. Fed& restrictive patent provision which may eral assistance might hasten the work curtall the safety research that is so vital and bring the invention to public useto the campaign against traffic accidents fulness sooner. But the developer, who and injuries.

would lose all his rights to the invention We opposed this amendment when it under the committee amendment, could was offered in the committee. I am re- hardly afford to accept Federal aid. ferring to the Senators who signed the The public safety will be the clear loserminority views_namely, the Senator and no one the gainer—under the from New Hampshire (Mr. COTTON), the amendment. Senator from Kentucky (Mr. MORTON), Mr. LONG of Louisiana. Mr. Presithe Senator from Pennsylvania (Mr. dent, will the Senator yield for a SCOTT), the Senator from Vermont (Mr. question? PROUTY), the Senator from Kansas (Mr. Mr. COTTON. I yield. PEARSON), and the Senator from Colo- Mr. LONG of Louisiana. Under the rado (Mr. DOMINICK). We shall oppose approach advocated by the Senator it on the floor, and feel so strongly about from New Hampshire and his group, it that we have been impelled to file our would it be possible to ask that public individual views, despite our overall sup- money be spent, then to develop the port of the bill.

article with public funds, and then en

biles.

able the inventor to secure & patent and Now, knowing all the bright young charge $100 for a better seat belt that men who serve on the staff of the Comwould cost only $10 to manufacture, or mittee on Commerce, I cannot, for the in some cases deny it to the public life of me, imagine which member of the entirely?

staff could possibly be the author of such Mr. COTTON. I certainly do not be- an utterly assinine statement as that. leve so. The bill not only empowers Let me explain why I characterize it so but also enjoins the Secretary of Com- strongly. merce to undertake safety research on The Committee on Commerce did not his own. It is adequately safeguarded legislate in a vacuum. The Committee against the situation mentioned.

on Commerce heard evidence from the I should Uke to finish my reference to automobile industry. They heard evithe minority views; then I shall respond dence from all interested parties. They to the question of the Senator from heard evidence from Mr. Nader. They Louisiana more fully.

heard evidence from the representatives The fundamental aim of the bill is

of various associations and organizations, safety, yet the amendment throws a new, State, and National, interested in autounforeseen roadblock in the path of

mobile safety. The committee knows exsafety research.

actly what the position of the industry is Furthermore, the provision is another

on various matters. attempt at a patchwork, piecemeal ap

There is one thing that is absolutely proach to the problem of patent policies

certain. The automobile industry in this and federally supported research.

country is one industry that does not and Twice last year the Senate rejected

will not seek financial aid, and does not similar provisions because it felt the

want financial aid or participation from problem should be dealt with through

the Government in designing, engineercomprehensive, general legislation. Such

ing, researching, and building automo& buli, S. 1809, has now been approved by the Senate Patents Subcommittee and is

They are perfectly capable of financactively being marked up by the fu ing their own engineering and designJudiciary Committee. There is no jus- ing, and their own safety devices. They tification for further complicating the displayed a good deal of feeling that matter by yet another separate amend

they wanted to be permitted to do it. ment.

Now, instead of this provision protectWe believe section 106(c) should be ing the Treasury from being raided by deleted. The Senate should be given the these poor, impoverished automobile opportunity to consider the comprehen

manufacturers, the biggest manufactursive bil now before the Judiciary Com- ing industry in this country, and to get mittee. In the meantime, the public the Government to help them make re. interest will be adequately and soundly search and to help them engineer their protected because research authorized cars, what does this provision do, as & by this bill will be subject to the general matter of fact? Government patent policies prescribed by It does not strike at the industry. It President Kennedy in 1963.

strikes at the Secretary of Commerce or Mr. President, I find a remarkable & Secretary of Transportation, whichstatement in the report of the commito ever may be charged with administering tee, which I assume was prepared by the the program of automobile safety under majority staff, with perhaps some sug- the bill. It strikes at them for this reagestions from the minority staff.

son: The Government needs the expeI refer to the bottom of page 14, the rience, needs the advice, needs the knowportion which discusses section 106(c), how, and needs the facts from the autothe section that our amendment seeks to motive industry on safety devices if the delete:

Secretary is to be able and prepared to Section 106(c), by denying contractors ex. carry out the admonition in the bill that clusive rights in the performance of research he shall engage in research and safety activities where tho Federal contribution 18 in automobile construction. “more than minimal," will bolp curtall un- Mr. PASTORE. Mr. President, will necessary industry pleas for Government the Senator yield at that point? financial support where tho companies can

Mr. COTTON. I yield. do the research themselves. By doing their own research and securing patents on inven Mr. PASTORE. Does not the Senator tions which they discover the companies in feel that way because these are the the auto industry can make substantial giants in our industry? Certainly I progress toward increasing auto safety have no antipathy against the Big Three without having to make substantial use of or Big Four. I am one of those who feels public funds.

the bill should be passed exactly as re

ported from committee. I shall go so he wants to have the expertise of the far as to vote against the restoration of automotive builders and manufacturers the criminal penalty because I do not of parts or any others in exploring this think it necessary.

possibility, they will not dare to help We are trying to promote safety in

him. Why? I do not know what the the public interest. I believe this bill word “minimal" means, but the moment does that and does it effectively. I do they enter into any program whatsoever not believe we ought to hit anybody over with the Secretary of Commerce they the head with a club. I do not think must forego any patent rights and whatwe ought to keep hitting them untu the ever they might develop themselves they Big Four cry out “Uncle"—“Uncle Sam." would have to turn over to the world at This should not be a punitive attempt on large. That is not the way businessmen our part. This should be a crusade to work when they are putting investments improve the quality character of the automobiles on the highways so that public That is why I say with respect to this safety will be promoted.

particular paragraph in the bill, I am But I say this to my distinguished surprised that the Secretary of Comfriend. It is contemplated here that the merce has not been lobbying against it Secretary of Commerce shall enter into because it handicaps him. It is not going certain contracts in order to conduct re- to affect the major carmakers at all but search and in order to promote safety. It is going to make it infinitely more dilPublic funds are to be expended for that ficult and more expensive not less expurpose, and certainly those funds are pensive as this statement in the report going to be given to these automotive indicates more expensive to the Federal giants.

Government. Does not the Senator think that once The Federal Government will probably, industry makes a discovery with public as a result, not through intentional boymoney that it should be shared with all cotting by the industry, but as a result of the giants? It will not do me any of industries' desire to develop their own 14239 good, or the Senator from Washington

engineering, spend more funds and not (Mr. MAGNUSON) any good, or the Sena

less on research. tor from New Hampshire (Mr. COTTON) (At this point, Mr. PROXMIRE assumed any good, once they make the discovery. the chair) But all the discoveries will be available Mr. LONG of Louisiana. Mr. Presito all automobile manufacturers rather dent. will the Senator yield? than becoming exclusive to the one con Mr. COTTON. I yield to the Senator cern making & discovery and this is from Loviistana proper because the discovery was with Mr. LONG of Louisiana. Is the Sensadvanced public money. I understand

tor aware of the fact that we have had that industry is not opposed to this

testimony from all of these agencies, the provision.

Atomic Energy Commission and others, Mr. COTTON. I the Senator had

which are not permitted to grant private waited until I had completed a few more,

patents on their research, to the effect sentences I would have emphasized, as

that they never had the problem of findI am emphasizing, that he is 100 per

ing enough contractors to do the research cent right. They are not opposed to it.

for them? The problem has been that The automobile industry, I am in

they did not have enough contracts to formed and I believe every member of

go around. the committee, I am informed-do not

Can the Senator explain to me why give a hoot about whether this provision

the Secretary ought to permit under his remains in the bill or not because it is

contract on highway automobile safety their policy and they are well equipped to do their own designing, engineering,

a result wherein a contractor would be

guaranteed a profit on the research, but and building of cars.

could be in a position to charge perhaps What I was about to emphasize was the

$100 for a $15 seat belt, or even deny the fact that when the Secretary, who is ad

public completely the benefit for that ministering this safety program, comes

which the public paid? around to seek the cooperation, he has

Mr. COTTON. Yes, I can explain that & suggestion, perhaps, on how the struc

to the distinguished Senator in a very few ture of an automobile may be strength

words. This whole bill, page after page ened to protect the occupants, or a suggestion as to some device for safety, and

after page, and the President's message

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