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(1) require periodic written reports at reasonable intervals in the commercial utilization or efforts at ob

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taining commercial utilization that are being made by the inventor or contractor or their licensees or assignees: Provided, That any such information shall be treated by the Federal agency as commercial or financial information obtained from a person and privileged or confidential and not subject to disclosure under the

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Freedom of Information Act;

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(2) reserve to the United States at least an irrevocable, 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 li

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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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(4) require an election by the contractor within a

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reasonable time after disclosure as to whether the con

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tractor intends to file a patent application on any in

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(5) require a declaration by the contractor within

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a reasonable time after disclosure of the contractors

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intent to commercialize or otherwise achieve the wide

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spread utilization of the invention by the public; and

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(6) reserve to the United States and the contrac

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tor or inventor rights in each such invention in con-
formity with the provisions of this title.
(b) Agency determinations as to the rights to inventions

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13 under this title shall be made in an expeditious manner with

14 out unnecessary delay.

15 SEC. 306. BACKGROUND RIGHTS.

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Nothing contained in this Act shall be construed to de

17 prive the owner of any background patent or to such rights

18 as the owner may have thereunder.

19 SEC. 307. GOVERNMENT LICENSING AUTHORITY.

20 (a) A Federal agency may grant exclusive or partially 21 exclusive licenses in any invention to which the Government 22 has acquired title if the agency determines that, 23

(1) the desired practical application has not been 24 achieved, or is not likely to be achieved within a rea

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1 tion among such applicants in such proportions as it shall

2 determine to be equitable.

3 (e) No award may be made under subsection (a) with 4 respect to any invention unless the applicant surrenders, by 5 such means as the agency shall determine to be effective, all 6 claims which such applicant may have to receive any com7 pensation (other than the award made under this section) for 8 the use of such invention or any element thereof at any time 9 by or on behalf of the United States or by or on behalf of any 10 foreign government pursuant to any treaty or agreement with 11 the United States, within the United States or at any other

12 place.

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(1) No award may be made under subsection (a) in any

14 amount exceeding $100,000, unless the agency has transmit

15 ted to the appropriate committees of the Congress a full and 16 complete report concerning the amount and terms of, and the 17 basis for, such proposed award, and 30 calendar days of reg18 ular session of the Congress have expired after receipt of 19 such report by such committees.

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(g) A cash award and expense for honorary recognition

21 of a Federal employee-inventor shall be paid from the funds 22 appropriated for the sponsoring Federal agency.

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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

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.

16 (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 to21

(1) invent, improve, or perfect any article, ma

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chine, manufacture process, or composition of matter;

(2) conduct or perform research or development

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work, or both;

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(3) supervise, direct, coordinate, or review federal

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ly financed or conducted research or development

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work, or both; or

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(4) act in a liaison capacity among Federal or

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non-Federal agencies or individuals engaged in such

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work.

7 (b) The presumption established by subsection (a) may 8 be rebutted by the facts or circumstances of the conditions 9 under which any particular invention is made.

10 SEC. 403. REVIEW.

11 Federal agency determinations regarding the respective 12 rights of the Government and the Federal employee-inventor 13 are to be reviewed by the Secretary in accordance with rules,

14 regulations, and procedures adopted by the Secretary when

15 ever

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(1) the Federal agency fails to obtain title under the provisions of section 401(a); or

(2) the Federal employee-inventor who claims to be aggrieved by the determination requests such a

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review.

21 SEC. 404. INCENTIVES AWARDS PROGRAM.

22 (a) Subject to the provisions of this section, the agency 23 is authorized, upon its own initiative or upon application of 24 any person, to make a monetary award or otherwise offer 25 recognition, in such amount and upon such terms as it shall

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