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1 SEC. 103. DEFINITIONS.

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As used in this Act the term

(1) "contract" means any contract, grant, agreement, commitment, understanding, or other arrangement entered into between any Federal agency and

any person where a purpose of the contract is the conduct of experimental, developmental, or research work. Such term includes any assignment, substitution of parties, or subcontract of any type entered into or executed for the conduct of experimental, developmental, or research work in connection with the performance of

that contract;

(2) "contractor" means any person or other entity

that is a party to the contract;

(3) "disclosure" means a written statement sufficiently complete as to technical detail to convey to one skilled in the art to which the invention pertains a

clear understanding of the nature, purpose, operation,

and as the case may be, physical, chemical, or electrical characteristics of the invention;

(4) "Federal agency" means an "executive agency" as defined by section 105 of title 5, United

States Code, and the military departments as defined

by section 102 of title 5, United States Code;

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(5) "Federal employees" means all employees as defined in section 2105 of title 5, United States Code,

and members of the uniformed services;

(6) "Government" means the Government of the United States of America;

(7) "invention" means any invention, discovery, innovation, or improvement which is or may reasonably be patentable subject matter as defined in title 35, United States Code;

(8) "inventor" means any person, other than a contractor, who has made an invention under a contract but who has not agreed to assign his rights in such invention to the contractor;

(9) "made under the contract" or "made under a

contract" when used in relation to any invention

means the conception or first actual reduction to prac

tice of such invention in the course of any work under the contract or under a contract, respectively;

(10) "nonprofit organization" means universities and other institutions of higher education or an organi

zation of the type described in section 501(c)(3) of the Internal Revenue Code of 1954 (26 U.S.C. 501(c)) and

exempt from taxation under section 501(a) of the Inter

nal Revenue Code (26 U.S.C. 501(a));

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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 reasonable 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;

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(iii) procedures for prompt invention identification and timely disclosure to the officer or entity administering the patent policy of the nonprofit organization;

(iv) procedures for invention evaluation; and

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

TITLE II-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 re17 sults of federally sponsored research and development.

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

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(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 Federal Procurement Policy, to formulate and recommend to

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the President such proposed rules, regulations, and procedures necessary and desirable to assure the consistent application of the provisions of this Act;

(3) to accumulate, analyze, and disseminate data necessary to evaluate the administration and effectiveness 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 invention; 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

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20 thorized and directed to

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

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

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