COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION HOWARD W. CANNON, Nevada, Chairman WARREN G. MAGNUSON, Washington BOB PACKWOOD, Oregon ERNEST F. HOLLINGS, South Carolina HARRISON H. SCHMITT, New Mexico NANCY LANDON KASSEBAUM, Kansas DONALD W. RIEGLE, JR., Michigan AUBREY L. SARVIS, Staff Director and Chief Counsel Edwin K. Hall, General Counsel JOHN STEWART, Professional Staff Member STEPHEN MERRILL, Professional Staff Member William M. DIEFENDERFER, Minority Staff Director MALCOLM B. STERRETT, Minority Counsel CHRONOLOGICAL LIST OF WITNESSES Bremer, Howard W., patent counsel, Wisconsin Alumni Research Foundation; and Dr. Willard Marcy, vice president, Research Corp ........ Johnson, R. Tenney ............ McCloskey, Peter F., president, Electronic Industry Association; Karl G. Harr, Jr., president, Aerospace Industries Association of America, Inc.; Hugh E. Witt, director, Government Liaison, United Technologies Corp., and Harold K. Lonsdale, president, Bend Research, Inc Prepared statement of Mr. McCloskey Prepared statement of Mr. Harr Prepared statement of Mr. Lonsdale ........ Mossinghoff, Gerald J., Deputy General Counsel, NASA; and James E. Denny, Assistant General Counsel for Patents, Department of Energy ..... Prepared statement of Mr. Mossinghoff ........... Prepared statement of Mr. Denny .... Opening statement by Senator Stevenson Arnold, Tom, president, American Patent Law Association, Arnold, White & Burkard, Herbert G., corporate patent counsel, Raychem Corp Lemelson, Jerome H., president, Licensing Management Corp................ Lodge, Gerald A., chairman, Innoven Capital Corp Manbeck, H. F., Jr., general patent counsel, General Electric Co. Rabinow, Jacob, consultant, National Bureau of Standards, Department of Prepared statement ............................................................. Opening statement by Senator Stevenson ............. Opening statement by Senator Schmitt ........... Armstrong, Marshall J., assistant general manager, energy and instruments group, Thermo Electron Corp.; accompanied by James Neal, corporate Church, Dale W., Deputy Under Secretary of Defense for Acquisition Policy, Department of Defense; accompanied by Walter Henderson, staff Prepared statement .................................................... Rickover, Adm. H. G., Deputy Commander for Nuclear Propulsion, Naval Sea Systems Command, Department of the Navy ... Questions of Senator Schmitt and the answers thereto .......... . . . .. . .. . Page 437 ADDITIONAL ARTICLES, LETTERS, AND STATEMENTS Arnold, Tom, American Patent Law Association, letters of: May 31, 1979............ August 8, 1979... tember 12, 1979.. 1979 ......... Draft Report on Policy ............ system............................ of June 19, 1979 ......... Koogle, Herbert G., chairman, National Society of Professional Engineers, letter of July 31, 1979...... 1979 ............ ber 19, 1977 ......... ary, June 6, 1979...... Peter Drucker ..... 1979 ......................... August 23, 1979 .. PATENT POLICY MONDAY, JULY 23, 1979 U.S. SENATE, COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION, SUBCOMMITTEE ON SCIENCE, TECHNOLOGY, AND SPACE, Washington, D.C. The subcommittee met at 9:30 a.m., in room 235, Russell Senate Office Building, Hon. Adlai E. Stevenson (chairman of the subcommittee) presiding. OPENING STATEMENT BY SENATOR STEVENSON Senator STEVENSON. America's leadership in technology has often resulted from the Government's role as a supporter of research and development and consumer of its results. As distasteful as the notion may be to believers in the omnipotence of free enterprise and the irrelevance of Government, our most innovation and competitive industries are those which have benefited most from Government involvement-aerospace, electronics, telecommunications, and agriculture. Now with productivity stagnating, inflation accelerating, our competitive position in world markets eroding, and the need for energy development pressing, the Government is uncertain about new technological initiatives and continues to impose barriers to Government-industry collaboration. In May I introduced with Senator Cannon and Senator Schmitt the National Technology Innovation Act. The subcommittee held hearings in June. Today we begin hearings on the Science and Technology Research and Development Utilization Policy Act, a bill introduced by Senator Schmitt to establish a uniform policy for determining the rights of the Government, its contractors and employees to exploit publicly financed inventions. The Federal research budget of $29 billion represents half of the Nation's total investment in R. & D. and generates more than 10,000 invention disclosures a year. The Government acquires title to the vast majority of inventions whose ownership and usage rights are determined, but less than 10 percent of the Government's portfolio has been licensed to private producers. Less than 5 percent of Government-owned inventions are used commercially. For energy development, health care and transportation improvement, civilian applications of military and space R. & D., and a variety of other domestic purposes, the Government depends largely on private markets to commercialize the technology it develops. Government financing of the R. & D. does not eliminate the risks to private investors in turning these inventions into marketa |