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sonably satisfied by the contractor or its licensees or otherwise required for the protection of nation

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al security;

(ii) to meet requirements for public use by

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Federal regulation which are not satisfied by the

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tion in any section of the United States in any line of commerce to which the technology relates, or to create and maintain other situations incon

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sistent with the antitrust laws.

15 (b) The rights of the Federal agency under subsection 16 (a) shall be subject to the prior approval of the Secretary who 17 shall make a determination after a formal hearing with affect

18 ed parties present and conducted in accordance with the

19 rules, regulations, and procedures adopted by the Secretary.

20 SEC. 305. GENERAL PROVISIONS.

21 (a) Each contract entered into by the Government shall 22 contain such terms and conditions as the agency deems ap

23 propriate for the protection of the interests of the United

24 States and the general public, including appropriate provi

25 sions to

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ees: Provided, That any such information shall be

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treated by the Federal agency as commercial or financial information obtained from a person and privileged

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or confidential and not subject to disclosure under the

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(2) reserve to the United States at least an irrevo

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cable, nonexclusive, paid-up license to make, use, and sell the invention throughout the world by or on behalf

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of the United States and States and domestic municipal

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governments, unless the agency determines that it

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would not be in the public interest to acquire the license for the States and domestic municipal govern

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ments;

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(3) require the prompt disclosure by the contractor or inventor to that agency of any invention made under the contract: Provided, That Federal agencies are authorized to withhold from disclosure to the public, information disclosing any invention made under the con

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tract of an agency for a reasonable time in order for a

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United States or foreign patent application to be filed;

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1 extent necessary for the Government to grant an exclusive

2 license.

3 SEC. 303. WAIVER.

4 A Federal agency may at any time waive all or any part 5 of the rights of the United States under this title to any in

6 vention or class of inventions made or which may be made by 7 any person or class of persons under the contract of the 8

agency if the agency determines that the condition justifying 9 acquisition of title by the Government under section 301 no 10 longer exists or the interests of the United States and the 11 general public will be best served thereby. The agency shall 12 maintain a record, which shall be made public and periodical13 ly updated, of determinations made under this section. In

14 making such determinations, the agency shall consider the

15 following objectives: 16

(1) encouraging the wide availability to the public 17 of the benefits of the experimental, developmental, or 18 research programs in the shortest practicable time;

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(a) Where a contractor has retained title to an invention

6 under section 302 or 303, the Federal agency shall have the 7 right, pursuant to regulations and subject to the provisions of

8 subsection (b), to

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(1) require the contractor to grant a nonexclusive, partially exclusive, or exclusive license to a responsible

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applicant or applicants, upon terms reasonable under

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the circumstances, or to require an assignment of title

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to the Government if the agency determines such action is necessary because the contractor has not filed

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a patent application on the invention within a reason

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able period of time or has not taken, or is not expected

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to take within a reasonable time, effective steps to

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achieve practical application of the invention; or

(2) require the contractor to grant a nonexclusive, partially exclusive, or exclusive license to a responsible

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applicant or applicants, upon terms reasonable under

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the circumstances, if the agency determines such action

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is necessary

(i) to alleviate a serious threat to the public

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health, safety, or welfare needs which is not rea

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(b) Where the interest of the Government is insufficient

2 to require acquisition of title by the Government but the in

3 vention bears an indirect relation to the duties of the Federal

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4 employee-inventor, the employee shall have the option of ac5 quiring title to such invention, subject, however, to the reser6 vation by the Government of a nonexclusive, irrevocable, 7 royalty-free license in the invention with the power to grant 8 licenses for all governmental purposes. The Government 9 shall obtain title to any invention for which this option is not

10 exercised.

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(c) In all situations not falling within subsections (a) and

12 (b), a Federal employee shall be entitled to retain the entire 13 right, title, and interest in and to any invention made by the

14 employee.

15 SEC. 402. PRESUMPTION OF OWNERSHIP.

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(a) In applying the criteria of section 401 to the facts

17 and circumstances relating to the making of any particular

18 invention, it shall be presumed that an invention falls within

19 the criteria of section 401(a) when made by a Federal em-
20 ployee who is employed or assigned to-
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(1) invent, improve, or perfect any article, ma22 chine, manufacture process, or composition of matter; 23

(2) conduct or perform research or development

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