The issue of a fair and equitable patent policy; the wisdom of a uniform, government-wide policy; the resultant licensing and procurement practices and other issues have been of continued importance and were evident again in the hearings held earlier this year.

It is to allow the Subcommittee members to conclude this legislative session with a careful scrutiny of this timely subject that the following 3 volume Committee Print was compiled. It contains official government documents, including summaries of individual Agency legislation which demonstrate the present official policies as well as Presidential messages and resultant regulations which Agencies adhere to in lieu of specific legislative mandates. How these relate to the success of the Nation's R. & D. effort will be the Subcommittee's focus during a forthcoming series of hearings. The second volume of these background papers includes portions of the texts of the important government patent policy studies done in the last 30 years, beginning with the 1947 Report of the Attorney General on Government Patent Practices and Policies. The third volume includes a selection of scholarly articles on this subject.

SECTION I-PATENT PROVISIONS OF THE CONSTITUTION OF THE UNITED STATES

We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.

ARTICLE I

Section 8

The Congress Shall Have Power...

To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries;

76-204 O-76-2

(3)

SECTION II-PATENT POLICY STATEMENTS AND EXECUTIVE ORDERS OF THE PRESIDENT

Part A-Presidential Statements

Government policy toward the patenting of inventions which result from Federally funded research and development relies heavily on Presidential statements and Executive Orders. In the many cases where a department or agency is not subject to a specific statutory patent policy, the Presidential policy statements apply. Some agencies have within their enabling legislation specific mandates, but even in these instances frequently reference is made to compliance with the most recent Presidential Statement promulgated in 1971. Prior to that statement one other Presidential Patent Policy Statement had been issued in 1963.

Based on the Patent Policy Statement of 1971, Title 41-Public Contracts and Property Management-was issued and published in the Federal Register in May 1975, to further guide agencies in their patenting and licensing procedures. In addition, three Executive Orders have been issued concerning government employee inventions. These official documents comprise the "Background Materials on Government Patent Policy-The Ownership of Inventions Resulting From Federally-Funded R. & D."

PRESIDENTIAL MEMORANDUM AND STATEMENT OF GOVERNMENT PATENT POLICY ISSUED OCTOBER 10, 1963

(Published Federal Register, Vol. 28, No. 200, October 12, 1963)

MEMORANDUM FOR THE HEADS OF

EXECUTIVE DEPARTMENTS AND AGENCIES

Over the years, through Executive and Legislative actions, a variety of practices has developed within the Executive Branch affecting the disposition of rights to inventions made under contracts. with outside organizations. It is not feasible to have complete uniformity of practice throughout the Government in view of the differing missions and statutory responsibilities of the several departments and agencies engaged in research and development. Nevertheless, there is need for greater consistency in agency practices in order to further the governmental and public interests in promoting the utilization of federally financed inventions and to avoid difficulties caused by different approaches by the agencies when dealing with the same class of organizations in comparable patent situations.

From the extensive and fruitful national discussions of government patent practices, significant common ground has come into view. First, a single presumption of ownership does not provide a satisfactory basis for government-wide policy on the allocation of rights to inventions. Another common ground of understanding is that the Government has a responsibility to foster the fullest exploitation of the inventions for the public benefit.

Attached for your guidance is a statement of government patent policy, which I have approved, identifying common objectives and criteria and setting forth the minimum rights that government agencies should acquire with regard to inventions made under their grants and contracts. This statement of policy seeks to protect the public interest by encouraging the Government to acquire the principal rights to inventions in situations where the nature of the work to be undertaken or the Government's past investment in the field of work favors full public access to resulting inventions. On the other hand, the policy recognizes that the public interest might also be served by according exclusive commercial rights to the contractor in situations where the contractor has an established nongovernmental commercial position and where there is greater likelihood that the invention would be worked and put into civilian use than would be the case if the invention were made more freely available.

Wherever the contractor retains more than a non-exclusive license, the policy would guard against failure to practice the invention by requiring that the contractor take effective steps within three years after the patent issues to bring the invention to the point of practical application or to make it available for licensing on reasonable terms. The Government would also have the right to insist on the granting of a license to others to the extent that the invention is required for public use by governmental regulations or to fulfill a health need, irrespective of the purpose of the contract.

The attached statement of policy will be reviewed after a reasonable period of trial in the light of the facts and experience accumulated. Accordingly, there should be continuing efforts to monitor, record, and evaluate the practices of the agencies pursuant to the policy guidelines. This memorandum and the statement of policy shall be published in the Federal Register.

JOHN F. KENNEDY.

STATEMENT OF GOVERNMENT PATENT POLICY

Basic Considerations

A. The government expends large sums for the conduct of research and development which results in a considerable number of inventions and discoveries.

B. The inventions in scientific and technological fields resulting from work performed under government contracts constitute a valuable national resource.

C. The use and practice of these inventions and discoveries should stimulate inventors, meet the needs of the government, recognize the equities of the contractor, and serve the public interest.