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(11) “person” means any individual, partnership, corporation, association, institution, or other entity;

(12) “practical application" means to manufacture in the case of a composition or product, to practice in the case of a process or method or to operate in the case of a machine or system, and, in each case, under such conditions as to establish that the invention is being worked and that its benefits are available to the

public either on reasonable terms or through reason

able licensing arrangements; and

(13) "qualified technology transfer program”, when used in relation to a nonprofit organization,

means a program which includes

(i) an established patent policy which is consistent with the policy set forth in this Act and is administered on a continuous basis by an officer

or entity responsible to the nonprofit organization;

(ii) agreements with employees requiring them to assign either to the organization, its designee, or the Government any invention conceived or first actually reduced to practice in the course of or under Government contracts or assurance that such agreements are obtained prior to the assignment of personnel to Government-supported research and development projects;

course

(ii) procedures for prompt invention identifi

cation and timely disclosure to the officer or

entity administering the patent policy of the non

profit organization;

(iv) procedures for invention evaluation; and

(v) an active and effective promotional program for the licensing and marketing of inven

tions.

TITLE I-IMPLEMENTATION

10 SEC. 201. RESPONSIBILITIES. 11 (a) The Secretary of Commerce, hereinafter referred to 12 as the Secretary, shall coordinate, direct, and review the im13 plementation and administration of the Federal policy set 14 forth in this Act with respect to the ownership of inventions 15 resulting from federally sponsored research and development, 16 and promote the efficient and effective utilization of the re

17 sults of federally sponsored research and development.

18 (b) With a view to obtaining consistent application of 19 the policies of this Act, the Secretary is authorized and di

20 rected

(1) to consult and advise with Federal agencies

concerning the effective implementation and operation

of the policies, purposes, and objectives of this Act;
..(2) subject to the authority of the Office of Feder-

.

al Procurement Policy, to formulate and recommend to

the President such proposed rules, regulations, and

procedures necessary and desirable to assure the con

sistent application of the provisions of this Act;

(3) to accumulate, analyze, and disseminate data

necessary to evaluate the administration and effective

ness of the policies set forth in this Act;

(4) to determine with administrative finality any dispute between a Federal agency and an aggrieved party arising under title III or title IV of this Act;

(5) monitor, on a continuing basis, the rights of the Government under section 304 of this Act in any

invention made under a contract of a Federal agency, and take all suitable and necessary steps to protect and

enforce the rights of the Government in any such in

vention; and

(6) to perform such other duties as may be prescribed by the President or by statute.

(c) For the purpose of assuring the effective manage19 ment of Government-owned inventions, the Secretary is au

20 thorized and directed to

(1) assist and coordinate agency efforts to promote the licensing and utilization of Government-owned in

ventions;

(2) accept custody and administration, in whole or in part, of Government rights in any invention for the

25

purpose of protecting the United States interest therein and promoting the effective utilization of any such

invention;

(3) develop and manage a Government-wide program designed to stimulate the transfer of Government-owned technology to the private sector through the development, demonstration, and dissemination of information regarding potential applications and evaluate and assist where appropriate the participation of the private sector in the technology transfer process;

(4) evaluate, with the assistance of the originating

agency, Government-owned inventions in order to

identify those inventions with the greatest commercial

potential and to promote the development of inventions

so identified;

(5) assist the Federal agencies in seeking protec

tion and maintaining inventions in foreign countries, in

cluding the payment of fees and costs connected therewith;

(6) make market surveys and other investigations for determining the potential of inventions for domestic and foreign licensing and other utilization;

(7) acquire technical information and engage in negotiations and other activities for promoting the licensing and other utilization of Government-owned in

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10

ventions and to demonstrate the practicability of the inventions for the purpose of enhancing their marketability;

(8) consult and advise Federal agencies as to areas of science and technology research and development with potential for commercial utilization; and

(9) receive funds from fees, royalties, sales, or

other management of Government-owned inventions authorized under this Act: Provided, however, That such funds will be used only for the purpose of this

Act.

(d) The Secretary shall submit an annual report of its 13 activities to Congress, including therein (1) relevant statisti14 cal data regarding the disposition of invention disclosures re15 sulting from federally funded research and development; (2) 16 any recommendation as to legislative or administrative

17 changes necessary to better achieve the policy and purposes

18 of this Act; and (3) an analysis of the impact of Federal poli19 cies on the purposes of this Act. 20 (e) The Secretary shall establish such interagency com21 mittees as are necessary to assist in the review and formula

22 tion of rules, regulations, and procedures implementing the

23 provisions of this Act.

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