is considered second to Honeywell in fluidics dollar investment. Other companies, such as Bowles Engineering Corp., General Electric, International Business Machines, Kollsman, and Emerson Electric, are also actively engaged in the research and development, manufacture, and sale of products in this field. In the national market for fiscal year 1965, industry in-house funding and industrial sales in the fluidics field have been estimated at $5-6 million, against Government funding of $8 million. Several basic United States patents have been issued that relate to the phenomena of wall attachment and sidewall control effect. A large number of patent applications relating to fluidics are pending in the United States Patent Office, many of which are involved in patent interference. Bowles Engineering Corp., the owner of several basic fluidics patents, has more than 25 of its fluidics patent applications pending, and Sperry Rand Corp. has filed nearly 150 fluidics patent patent applications. Honeywell, Bendix, General Electric, International Business Machines, and Kollsman also hold important fluidics patents. In view of the current activity in fluidics technology, and the private ownership of basic patents in this field, the acquisition of exclusive rights to this invention would not confer a preferred or dominant position on the contractor.

The Board further expressly finds that the contract meets the criteria of Section 1245. 106(c)(1), (which is hereby expressly incorporated by reference), which Section. encompasses the criteria of Section 1245. 104(a), subsections (1) through (4), (which are also hereby expressly incorporated by reference). The reasons for the Board's findings are stated below, corresponding in each case to the respective criterion set forth in each subsection.

SECTION 1245.104(a)(1). A principal purpose of the contract is to conduct a study for the establishment of logic rules and the feasibility of construction of fluid logic elements having three or more stable states. Fluidics systems, such as those under study in this contract, are of interest to NASA because of their reliability feature, since components that are reliable under varying conditions are highly desirable for

applications. Although inventions likely to arise out of the contract may have commercial utility in adding machines or computers, such utility is incidental to the

work to be performed under the contract. The study of fluid systems under the contract therefore has no application to the needs of the general public, and inventions likely to arise out of the contract will for this reason not be required for such use by governmental regulations.

SECTION 1245.104(a)(2). The contractor's main effort will be directed toward the establishment of logic rules and the development of fluid logic elements having three or more stable states; it is therefore clear that the work to be performed under the contract has no impact on the public health or the public welfare.

SECTION 1245.104(a)(3). Although the Government has contributed significantly toward advancing the technology of fluidics, and may have been the principal developer of the field, private industry has nevertheless acquired considerable experience in the field outside of work funded by the Government. In the past five years, private industry has performed extensive research and development of fluidics systems and components, and the technology has advanced so rapidly, that there are at present about 50 corporations actively engaged in work in this field. Among the companies that have acquired significant privatelyfunded experience are the contractor, UNIVAC, Division of Sperry Rand Corp., which has expended over $700,000 since 1960 for the research and development of fluid amplifiers; Honeywell, Inc., which since 1961 has invested company funds estimated at $1.5 million to build a fluidics capacity; and Bendix Corp., which is considered second to Honeywell in fluidics dollar investment. Other companies, such as Bowles Engineering Corp., General Electric, International Business Machines, Kollsman, and Emerson Electric, are also actively engaged in the research and development, manufacture, and sale of products in this field. In the national market for fiscal year 1965, industry in-house funding and industrial sales in the fluidics field have been estimated at $5-6 million, against Government funding of $8 million. Several basic United States patents have been issued that relate to the phenomena of wall attachment and sidewall control effect. A large number of patent applications relating to fluidics are pending in the United States Patent Office, many of which are involved in patent interference. Bowles Engineering Corp., the owner of several basic fluidics

patents, has more than 25 of its fluidics patent applications pending, and Sperry Rand Corp. has filed nearly 150 fluidics patent applications, more than half prior to the time of this contract. Honeywell, Inc., Bendix, General Electric, International Business Machines, and Kollsman also hold important fluidics patents. In view of the past and current activity in fluidics technology, and the private ownership of basic patents in the field, the acquisition of exclusive rights would not confer a preferred or dominant position on the contractor.

SECTION 1245.104(a)(4). The contractor is required to furnish all management, labor, facilities, equipment, tools, materials, and transportation in the performance of work under the contract.

Moreover, the Board expressly finds, as required by by Section 1245.106(c)(1), that

waiver of title would be an effective incentive for the contractor to pursue promptly further development and commercialization of the invention, since the contractor has stated that without title commercial exploitation would be long delayed, if undertaken at all, because of the risk of loss of capital investment, without some assurance of receiving a fair return for its capital outlay. Private ownership of exclusive rights to the invention would to a large extent provide this assurance.

On the basis of all the above-enumerated findings, the Inventions and Contributions Board concludes that the interests of the United States would best be served by waiving title under Section 1245.106 of the NASA Patent Waiver Regulations of August 27, 1964, and therefore RECOMMENDS THE GRANT OF THE PETITION.

Bendix Corp., which is considered second to Honeywell in fluidics dollar investment. Other companies, such as Bowles Engineering Corp., General Electric, International Business Machines, Kollsman, and Emerson Electric, are also actively engaged in the research and development, manufacture, and sale of products in this field. In the national market for fiscal year 1965, industry in-house funding and industrial sales in the fluidics field have been estimated at $5-6 million, against Government funding of $8 million. Several basic United States patents have been issued that relate to the phenomena of wall attachment and side wall control effect. A large number of patent applications relating to fluidics are pending in the United States Patent Office, many of which are involved in patent interference. Bowles Engineering Corp., the owner of several basic fluidics patents, has more than 25 of its fluidics patent applications pending, and Sperry Rand Corp. has filed nearly 150 fluidics patent patent applications. Honeywell, Bendix, General Electric, International Business Machines, and Kollsman also hold important fluidics patents. In view of the current activity in fluidics technology, and the private ownership of basic patents in this field, the acquisition of exclusive rights to the invention would not confer a preferred or dominant position on the contractor.

The Board further expressly finds that the contract meets the criteria of Section 1245.106(c)(1), (which is hereby expressly incorporated by reference), which Section encompasses the criteria of Section 1245. 104(a), subsections (1) through (4), (which are also hereby expressly incorporated by reference). The reasons for the Board's findings are stated below, corresponding in each case to the respective criterion set forth in each subsection.

SECTION 1245.104(a)(1). A principal purpose of the contract is to conduct a study for the establishment of logic rules and the feasibility of construction of fluid logic elements having three or more stable states. Fluidics systems, such as those under study in this contract, are of interest to NASA because of their reliability feature, since components that are reliable under varying conditions are highly desirable for space applications. Although inventions likely to arise out of the contract may have commercial utility in adding machines

or computers, such utility is incidental to the work to be performed under the contract. The study of fluid systems under the contract therefore has no application to the needs of the general public, and inventions likely to arise out of the contract will for this reason not be required for such use by governmental regulations.

SECTION 1245,104(a)(2). The contractor's main effort will be directed toward the establishment of logic rules and the development of fluid logic elements having three or more stable states; it is the refore clear that the work to be performed under the contract has no impact on the public health or public welfare.

SECTION 1245.104(a)(3). Although the Government has contributed significantly toward advancing the technology of fluidics, and may have been the principal developer of the field, private industry has nevertheless acquired considerable experience in the field outside of work funded by the Government. In the past five years, private industry has performed extensive research and development of fluidics systems and components, and the technology has advanced so rapidly, that there are at present about 50 corporations actively engaged in work in this field. Among the companies that have acquired significant privately-funded experience are the contractor, UNIVAC, Division of Sperry Rand Corp., which has expended over $700,000 since 1960 for the research and development of fluid amplifiers; Honeywell, Inc., which since 1961 has invested company funds estimated at $1.5 million to build a fluidics capacity; and Bendix Corp., which is considered second to Honeywell in fluidics dollar investment. Other companies, such as Bowles Engineering Corp., General Electric, International Business Machines, Kollsman, and Emerson Electric, are also actively engaged in the research and development, manufacture, and sale of products in this field. In the national market for fiscal year 1965, industry in-house funding and industrial sales in the fluidics field have been estimated at $5-6 million, against Government funding of $8 million. Several basic United States patents have been issued that relate to the phenomena of wall attachment and sidewall control effect. A large number of patent applications relating to fluidics are pending in the United States Patent Office, many of which are involved in patent interference. Bowles Engineering Corp., the owner of several basic fluidics patents,