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CONTENTS

4. Patent infringement and competition bidding..

C. Policy as to rights in data__

1. General policy.

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PRELIMINARY REPORT AS TO THE PATENT PRACTICES OF

THE DEPARTMENT OF DEFENSE

I. LEGAL AUTHORITY AS TO PATENTS

A. RESEARCH AND DEVELOPMENT-IN GENERAL

Subject to availability of appropriations, contracts of a military department for services and the use of facilities for research or development, or both, may be for a term of not more than 5 years, and may be extended for not more than 5 additional years.1

The military departments, together with other departments authorized to enter into contracts for basic research at nonprofit institutions, are authorized to make grants to such institutions for the support of basic research.2

Each military department may use funds appropriated for procurement purposes to acquire copyrights, patents, patent applications, licenses, designs, processes, manufacturing data, and releases (prior to suit) for past patent infringement, when such material is related to supplies or processes used by or for, or useful to, the department.3 The Secretary of Defense or his designee, subject to the approval of the President, is authorized to engage in basic and applied research projects essential to the responsibilities of the Department of Defense in the field of basic and applied research and development which pertain to weapons systems and other military requirements. Such projects may be performed under contract with private business entities, educational or research institutions, or other agencies of the Government, through one or more of the military departments, or by utilizing employees and consultants of the Department of Defense.*

The winner of design competitions conducted by the military departments pursuant to title 10, United States Code section 2271 for aircraft, aircraft parts, and aeronautical accessories may apply for patent on any feature of the design item originated by him, and if a patent issues he will have exclusive right under it against all persons except the United States or its vendee.

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B. RESEARCH AND DEVELOPMENT-DEPARTMENT OF THE AIR FORCE

The Department of the Air Force conducts and participates in research and development programs relating to the Air Force. It may procure or contract for the use of facilities, supplies, and services that are needed.

1 10 U.S.C. 2352. 242 U.S.C. 1891.

3 10 U.S.C. 2386.

45 U.S.C. 171c (b) (2).

5 10 U.S.C. 2273.

63 U.S.C. 9503.

The Air Force may buy ordnance, signal, and chemical warfare supplies, including parts and accessories, and designs that are considered necessary for experimental or test purposes in the development of the best supplies needed for the national defense."

The Air Force may make or procure gauges, dies, jigs, tools, fixtures, and other special aids and appliances, and specifications and drawings, necessary for the immediate manufacture of arms, ammunition, or special equipment that are necessary to equip the Air Force and are likely to be needed in time of war.

The Department of the Air Force may sell, lend, or give samples, drawings, manufacturing or other information to any contractor or Air Force supplier under approved production plans and to any person likely to manufacture or supply Air Force supplies."

C. RESEARCH AND DEVELOPMENT-DEPARTMENT OF THE ARMY

The Department of the Army conducts and participates in research and development programs relating to the Army. It may procure or contract for the use of facilities, supplies, and services that are needed.10

The Army may buy ordnance, signal, and chemical warfare supplies, including parts and accessories, and designs that are considered necessary for experimental or test purposes in the development of the best supplies needed for the national defense.11

The Army may also procure materials and facilities necessary to maintain and support it and its military organizations and installations including (1) guided missiles, (2) modern standard items of equipment, (3) equipment to replace obsolete or unserviceable equipment, (4) necessary spare equipment, materials, and parts and such reserve of supplies as is needed to the Army to perform its mission.12 The Department of the Army may sell, lend, or give samples, drawings, manufacturing or other information to any contractor for Army supply under approved production plans and to any person likely to manufacture or furnish Army supplies.13

The Army may authorize the use of its testing machine for iron, steel, and other materials by any person upon payment of a suitable fee.14

D. RESEARCH AND DEVELOPMENT-DEPARTMENT OF THE NAVY

The Department of the Navy procures naval stores and material. It directs the construction, armament, equipment, and employment of Navy vessels and all matters connected with the Navy.15

The Department of Navy may make expenditures as it considers appropriate for scientific investigations and research and the Secretary may delegate this authority to any person in the Department of the Navy.1

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710 U.S.C. 9504. 8 10 U.S.C. 9505. 910 U.S.C. 9506. 10 10 U.S.C. 4503. 11 10 U.S.C. 4504. 12 10 U.S.C. 4531.

13 10 U.S.C. 4506.

14 10 U.S.C. 4508.

15 10 U.S.C. 5031 (b).

16 10 U.S.C. 7203.

The Department may also conduct research and development relating to guided missiles and procure and construct guided missiles.17

The Navy may, without advertising, make contracts or amendments or modifications of contracts for services or materials necessary to conduct research and to make or secure reports, tests, models, or apparatus.18

Within the Navy Department there exists the Office of the Naval Research which performs the following duties: (1) The encouragement, promotion, planning, initiation, and coordination of naval research; (2) the conduct of naval research in augmentation of and in conjunction with the research and development conducted by the bureaus and other agencies and offices of the Department of Navy; and (3) supervises the administration and control of activities within or for the Department relating to patents, inventions, trademarks, copyrights, and royalties payments and any matters connected with these subjects. In the coordination of naval research, all estimates of appropriations for research by the various bureaus and offices are furnished to the Office of Naval Research.19

The sums appropriated for the Office of Naval Research may be used to carry out its duties including (1) administration, (2) conduct of research and development work in Government facilities, and (3) the conduct of research and development work under contracts with individuals, corporations, and educational or scientific institutions.20 The Bureau of Ships of the Department of Navy conducts at the David W. Taylor Model Basin, Carderock, Md., investigations to determine the most suitable shapes and forms for the U.S. vessels and aircraft and investigation of other problems of their design. The Navy may authorize experiments to be made at the Model Basin for private parties. Results of private experiments are confidential and may not be divulged without the consent of the persons for whom they are made. However, the data obtained from such experiments may be used by the Navy for governmental purposes subject to the patent laws of the United States.21

The Department of Navy may buy patents, applications for patents, and licenses under patents or applications for patents. These purchases are made from appropriations available for the purchase or manufacture of equipment or material to which the patents, applications for patents, or licenses pertain to.22

E. ARMED SERVICES PROCUREMENT REGULATION

The Armed Services Procurement Act of 1947,23 the basic legislative guidelines for military procurement, became effective on May 19, 1948. In implementation of that statute the Assistant Secretaries of the military departments for procurement issued the first armed services procurement regulation, usually abbreviated ASPR. In implementation of the ASPR each department issued a set of procedures: The Army Procurement Procedure (APP), the Navy Procurement Directive (NPD), and the Air Force Procurement Instructions (AFPI).

17 10 U.S.C. 7201. 18 10 U.S.C. 7522.

19 10 U.S.C. 5151.

20 10 U.S.C. 5152.

21 10 U.S.C. 7303.

22 10 U.S.C. 7210.

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