the right to make the determination to sublicense foreign governments pursuant to any treaty or agreement until after the invention has been identified, a sentence shall be added to the end of paragraph (c)(4)(ii) of the Patent Rights clause in §9-9.107-5(a) as follows:

This license shall include the right of the Government to sublicense foreign governments pursuant to any treaty or agreement with such foreign governments if the head of the agency or designee determines after the invention has been identified that it would be in the national interest to

acquire this right.

(e) License rights (upon request) to contractor (revocable).

When the head of the agency or designee determines that the contractor may, subject to the provisions of $9-9.107-4(a)(7) involving access to Restricted Data, reserve a revocable, nonexclusive, paid-up license in subject inventions, only upon a request by the contractor for the retention of such a license, paragraph (c)(1) of this clause in $9-9.107-5(a) shall be replaced with the following paragraph (c)(1):

(c) (1) The contractor may reserve upon request a revocable, nonexclusive, paid-up license in each patent application filed in any country on a subject invention and any resulting patent in which the Government acquires the title. The license shall extend to the contractor's domestic subsidiaries and affiliates, if any, within the corporate structure of which the contractor is a part and shall include the right to grant sublicenses of the same scope to the extent the contractor was legally obligated to do so at the time the contract was awarded. The license shall be transferable only with approval of ERDA except when transferred to the successor of that part of the contractor's business to which the invention pertains.

(f) License rights to contractor (irrevocable).

When the head of the agency or designee determines that the contractor may reserve an irrevocable, nonexclusive, paid-up license in the inventions resulting from the contract, paragraph (c)(1) of the Patent Rights clause of $9-9.107-5(a) shall be replaced with the following paragraph (c)(1), and paragraphs (c) (2) and (c)(3) of $9-9.107-5(a) and references thereto shall be cancelled:

(c)(1) The contractor reserves a revocable, nonexclusive, paid-up license in each patent application filed in any country on a subject invention and any resulting patent in which the Government acquires the title. The license shall

extend to the contractor's domestic subsidiaries and affiliates, if any, within the corporate structure of which the contractor is a part and shall include the right to grant sublicenses of the same scope to the extent the contractor was legally obligated to do so at the time the contract was awarded. The license shall be transferable only with approval of ERDA except when transferred to the successor of that part of the contractor's business to which the invention pertains.

(g) Contractor sublicense (revocable).

(1) When the head of the agency or designee determines at the time of contracting that, as indicated in §9-9.107-4(f), it would be in the interests of the Government to permit a contractor having the right to retain a revocable nonexclusive license in a subject invention to have the further right to grant one or more sublicensees a revocable license of the same scope, the following paragraph may be substituted for pararaph (c)(1) of the Patent Rights clause in $9-9.107-5(a):

(c) (1) The contractor reserves a revocable, nonexclusive, paid-up license in each patent application filed in any country on a subject invention and any resulting patent in which the Government acquires the title. The license shall extend to the contractor's domestic subsidiaries and affiliates, if any, within the corporate structure of which the contractor is a part and shall include the right to grant revocable, nonexclusive sublicenses of the same scope. The license shall be transferable only with approval of ERDA except when transferred to the successor of that part of the contractor's business to which the invention pertains.

(2) Where the contractor has been granted the right to retain a nonexclusive, irrevocable license in a subject invention, and it is determined as in (g)(1) above to leave in the contractor the right to grant one or more revocable sublicenses thereunder, the following .three paragraphs will be substituted for paragraphs (c)(1), (c)(2), and (c)(3) of the Patent Rights clause in §9-9.107-5(a):

The contractor reserves an irrevocable, nonexclusive, paid-up license in each patent application filed in any country on a subject invention and any resulting patent in which the Government acquires title. The license shall extend to the contractor's domestic subsidiaries and affiliates, if any, within the corporate structure of which the

contractor is a part and shall include the right to grant revocable, nonexclusive sublicenses which are revocable under the same terms and conditions as set forth in paragraphs (c) (2) and (3) of this clause. The license shall be transferable only with approval of ERDA except when transferred to the successor of that part of the contractor's business to which the invention pertains.

(c) (2) Revocation limitations.

Any sublicense granted by the contractor may be revoked or modified by ERDA, either in whole or in part, only to the extent necessary to achieve expeditious practical application of the subject invention under ERDA's published licensing regulations (10 CFR 781), and only to the extent an exclusive license is actually granted. This sublicense shall not be revoked in that field of use and/or geographicalareas in which the contractor, or its sublicensee, has brought the invention to the point of practical application and continues to make the benefits of the invention reasonably accessible to the public, or is expected to do so within a reasonable time.

(c)(3) Revocation procedures.

Before modification or revocation of any sublicense pursuant to paragraph (c)(2) of this clause, ERDA shall furnish the contractor and the sublicensee written notice of its intention to modify or revoke the sublicense, and the contractor and the sublicensee shall be allowed 30 days, or such longer period as may be allowed by the patent counsel (with notification by patent counsel to the contracting officer) for good cause shown in writing by the contractor or the sublicensee, after such notice to show cause why the sublicense should not be modified or revoked. The contractor or the sublicensee shall have the right to appeal in accordance with 10 CFR 781, any decision concerning the modification or revocation of the sublicense.

(h) Facilities license.

The following paragraph will be included as paragraph (n) of the Patent Rights (long form) clause in each contract having as purpose the design, construction, or operation of a Government-owned research, development, demonstration, or production facility. The scope of the license in the following paragraph may, in appropriate situations, be expanded to cover similar facilities.

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(n) Facilities license.

In addition to the rights of the parties with respect to inventions or discoveries conceived or first actually reduced to practice in the course of or under this contract, the contractor agrees to and does hereby grant to the Government an irrevocable, nonexclusive paid-up license in and to any inventions or discoveries regardless of when conceived or actually reduced to practice or acquired by the contractor, which are owned or controlled by the contractor at any time through completion of this contract and which are incorporated or embodied in the construction of the facility or which are utilized in the operation of the facility or which cover articles, materials, or products manufactured at the facility (1) to practice or to have practiced by or for the Government at the facility, and (2) to transfer such license with the transfer of that facility. The acceptance or exercise by the Government of the aforesaid rights and license shall not prevent the Government at any time from contesting the enforceability, validity or scope of, or title to, any rights or patents herein licensed.

$9-9.107-6 Clause for contracts (short form).

The following clause may be used instead of the clause of §9-9. 107-5(a) in contracts for basic or applied research where the contractor is a nonprofit or educational institution and in special situations including consultant contracts. This clause shall not be used in long term consultancy arrangements for work in ERDA programs covered by ERDA Manual Chapter 7604. In such instances the clauses in said chapter shall be used. Also this clause is not to be used in contracts calling for the operation of Government-owned facilities, or contracts in which an advance waiver has been granted, or other special contracts such as those for the conduct of major long-term continuing programs or basic agreements providing for the assignments of new tasks from time to time by mutual agreements.

(1) "Subject invention" means any invention or discovery of the contractor conceived or first actually reduced to practice in the course of or under this contract, and includes any art, method, process, machine, manufacture, design, or composition of matter, or any new and useful improvement thereof, or any variety of patents, whether patented or unpatented, under the patent laws of the United States of America or any foreign country.

(2) "Patent counsel" means the ERDA patent counsel assisting the procuring activity.

(b) Invention disclosures and reports.

(1) The contractor shall furnish the patent counsel (with notification by patent counsel to the contracting officer):

(i) A written report containing full and complete technical information concerning each subject invention within 6 months after conception or first actual reduction to practice but in any event prior to any on sale, public use, or public disclosure of such invention known to the contractor. The report shall identify the contract and inventor and shall be sufficiently complete in technical detail and appropriately illustrated by sketch or diagram to convey to one skilled in the art to which the invention pertains a clear understanding of the nature, purpose, operation, and to the extent known, the physical, chemical, biological, or electrical characteristics of the invention;

(ii) Upon request, but not more than annually, interim reports on an ERDA-approved form listing subject inventions for that period and certifying that all subject inventions have been disclosed or that there were inventions; and

no such

(iii) A final report on an ERDA-approved form within 3 months after completion of the contract work listing all subject inventions and certifying that all subject inventions have been disclosed or that there were no such inventions.

(2) The contractor agrees that the Government may duplicate and disclose subject invention disclosures and all other reports and papers furnished or required to be furnished pursuant to the contract.

(c) Allocation of principal rights.

(1) Assignment to the Government.

the

The contractor agrees to assign to the Government entire right, title, and interest throughout the world in and to each subject invention, except to the extent that rights are retained by the contractor under paragraphs (c) (2) and (d) of this clause.