[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2196 Enrolled Bill (ENR)]
H.R.2196
One Hundred Fourth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Wednesday,
the third day of January, one thousand nine hundred and ninety-six
An Act
To amend the Stevenson-Wydler Technology Innovation Act of 1980 with
respect to inventions made under cooperative research and development
agreements, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``National Technology Transfer and
Advancement Act of 1995''.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) Bringing technology and industrial innovation to the
marketplace is central to the economic, environmental, and social
well-being of the people of the United States.
(2) The Federal Government can help United States business to
speed the development of new products and processes by entering
into cooperative research and development agreements which make
available the assistance of Federal laboratories to the private
sector, but the commercialization of technology and industrial
innovation in the United States depends upon actions by business.
(3) The commercialization of technology and industrial
innovation in the United States will be enhanced if companies, in
return for reasonable compensation to the Federal Government, can
more easily obtain exclusive licenses to inventions which develop
as a result of cooperative research with scientists employed by
Federal laboratories.
SEC. 3. USE OF FEDERAL TECHNOLOGY.
Subparagraph (B) of section 11(e)(7) of the Stevenson-Wydler
Technology Innovation Act of 1980 (15 U.S.C. 3710(e)(7)(B)) is amended
to read as follows:
``(B) A transfer shall be made by any Federal agency under
subparagraph (A), for any fiscal year, only if the amount so
transferred by that agency (as determined under such subparagraph)
would exceed $10,000.''.
SEC. 4. TITLE TO INTELLECTUAL PROPERTY ARISING FROM COOPERATIVE
RESEARCH AND DEVELOPMENT AGREEMENTS.
Subsection (b) of section 12 of the Stevenson-Wydler Technology
Innovation Act of 1980 (15 U.S.C. 3710a(b)) is amended to read as
follows:
``(b) Enumerated Authority.--(1) Under an agreement entered into
pursuant to subsection (a)(1), the laboratory may grant, or agree to
grant in advance, to a collaborating party patent licenses or
assignments, or options thereto, in any invention made in whole or in
part by a laboratory employee under the agreement, for reasonable
compensation when appropriate. The laboratory shall ensure, through
such agreement, that the collaborating party has the option to choose
an exclusive license for a pre-negotiated field of use for any such
invention under the agreement or, if there is more than one
collaborating party, that the collaborating parties are offered the
option to hold licensing rights that collectively encompass the rights
that would be held under such an exclusive license by one party. In
consideration for the Government's contribution under the agreement,
grants under this paragraph shall be subject to the following explicit
conditions:
``(A) A nonexclusive, nontransferable, irrevocable, paid-up
license from the collaborating party to the laboratory to practice
the invention or have the invention practiced throughout the world
by or on behalf of the Government. In the exercise of such license,
the Government shall not publicly disclose trade secrets or
commercial or financial information that is privileged or
confidential within the meaning of section 552(b)(4) of title 5,
United States Code, or which would be considered as such if it had
been obtained from a non-Federal party.
``(B) If a laboratory assigns title or grants an exclusive
license to such an invention, the Government shall retain the
right--
``(i) to require the collaborating party to grant to a
responsible applicant a nonexclusive, partially exclusive, or
exclusive license to use the invention in the applicant's
licensed field of use, on terms that are reasonable under the
circumstances; or
``(ii) if the collaborating party fails to grant such a
license, to grant the license itself.
``(C) The Government may exercise its right retained under
subparagraph (B) only in exceptional circumstances and only if the
Government determines that--
``(i) the action is necessary to meet health or safety
needs that are not reasonably satisfied by the collaborating
party;
``(ii) the action is necessary to meet requirements for
public use specified by Federal regulations, and such
requirements are not reasonably satisfied by the collaborating
party; or
``(iii) the collaborating party has failed to comply with
an agreement containing provisions described in subsection
(c)(4)(B).
This determination is subject to administrative appeal and judicial
review under section 203(2) of title 35, United States Code.
``(2) Under agreements entered into pursuant to subsection (a)(1),
the laboratory shall ensure that a collaborating party may retain title
to any invention made solely by its employee in exchange for normally
granting the Government a nonexclusive, nontransferable, irrevocable,
paid-up license to practice the invention or have the invention
practiced throughout the world by or on behalf of the Government for
research or other Government purposes.
``(3) Under an agreement entered into pursuant to subsection
(a)(1), a laboratory may--
``(A) accept, retain, and use funds, personnel, services, and
property from a collaborating party and provide personnel,
services, and property to a collaborating party;
``(B) use funds received from a collaborating party in
accordance with subparagraph (A) to hire personnel to carry out the
agreement who will not be subject to full-time-equivalent
restrictions of the agency;
``(C) to the extent consistent with any applicable agency
requirements or standards of conduct, permit an employee or former
employee of the laboratory to participate in an effort to
commercialize an invention made by the employee or former employee
while in the employment or service of the Government; and
``(D) waive, subject to reservation by the Government of a
nonexclusive, irrevocable, paid-up license to practice the
invention or have the invention practiced throughout the world by
or on behalf of the Government, in advance, in whole or in part,
any right of ownership which the Federal Government may have to any
subject invention made under the agreement by a collaborating party
or employee of a collaborating party.
``(4) A collaborating party in an exclusive license in any
invention made under an agreement entered into pursuant to subsection
(a)(1) shall have the right of enforcement under chapter 29 of title
35, United States Code.
``(5) A Government-owned, contractor-operated laboratory that
enters into a cooperative research and development agreement pursuant
to subsection (a)(1) may use or obligate royalties or other income
accruing to the laboratory under such agreement with respect to any
invention only--
``(A) for payments to inventors;
``(B) for purposes described in clauses (i), (ii), (iii), and
(iv) of section 14(a)(1)(B); and
``(C) for scientific research and development consistent with
the research and development missions and objectives of the
laboratory.''.
SEC. 5. DISTRIBUTION OF INCOME FROM INTELLECTUAL PROPERTY RECEIVED BY
FEDERAL LABORATORIES.
Section 14 of the Stevenson-Wydler Technology Innovation Act of
1980 (15 U.S.C. 3710c) is amended--
(1) by amending subsection (a)(1) to read as follows:
``(1) Except as provided in paragraphs (2) and (4), any royalties or
other payments received by a Federal agency from the licensing and
assignment of inventions under agreements entered into by Federal
laboratories under section 12, and from the licensing of inventions of
Federal laboratories under section 207 of title 35, United States Code,
or under any other provision of law, shall be retained by the
laboratory which produced the invention and shall be disposed of as
follows:
``(A)(i) The head of the agency or laboratory, or such
individual's designee, shall pay each year the first $2,000, and
thereafter at least 15 percent, of the royalties or other payments
to the inventor or coinventors.
``(ii) An agency or laboratory may provide appropriate
incentives, from royalties, or other payments, to laboratory
employees who are not an inventor of such inventions but who
substantially increased the technical value of such inventions.
``(iii) The agency or laboratory shall retain the royalties and
other payments received from an invention until the agency or
laboratory makes payments to employees of a laboratory under clause
(i) or (ii).
``(B) The balance of the royalties or other payments shall be
transferred by the agency to its laboratories, with the majority
share of the royalties or other payments from any invention going
to the laboratory where the invention occurred. The royalties or
other payments so transferred to any laboratory may be used or
obligated by that laboratory during the fiscal year in which they
are received or during the succeeding fiscal year--
``(i) to reward scientific, engineering, and technical
employees of the laboratory, including developers of sensitive
or classified technology, regardless of whether the technology
has commercial applications;
``(ii) to further scientific exchange among the
laboratories of the agency;
``(iii) for education and training of employees consistent
with the research and development missions and objectives of
the agency or laboratory, and for other activities that
increase the potential for transfer of the technology of the
laboratories of the agency;
``(iv) for payment of expenses incidental to the
administration and licensing of intellectual property by the
agency or laboratory with respect to inventions made at that
laboratory, including the fees or other costs for the services
of other agencies, persons, or organizations for intellectual
property management and licensing services; or
``(v) for scientific research and development consistent
with the research and development missions and objectives of
the laboratory.
``(C) All royalties or other payments retained by the agency or
laboratory after payments have been made pursuant to subparagraphs
(A) and (B) that is unobligated and unexpended at the end of the
second fiscal year succeeding the fiscal year in which the
royalties and other payments were received shall be paid into the
Treasury.'';
(2) in subsection (a)(2)--
(A) by inserting ``or other payments'' after ``royalties'';
and
(B) by striking ``for the purposes described in clauses (i)
through (iv) of paragraph (1)(B) during that fiscal year or the
succeeding fiscal year'' and inserting in lieu thereof ``under
paragraph (1)(B)'';
(3) in subsection (a)(3), by striking ``$100,000'' both places
it appears and inserting ``$150,000'';
(4) in subsection (a)(4)--
(A) by striking ``income'' each place it appears and
inserting in lieu thereof ``payments'';
(B) by striking ``the payment of royalties to inventors''
in the first sentence thereof and inserting in lieu thereof
``payments to inventors'';
(C) by striking ``clause (i) of paragraph (1)(B)'' and
inserting in lieu thereof ``clause (iv) of paragraph (1)(B)'';
(D) by striking ``payment of the royalties,'' in the second
sentence thereof and inserting in lieu thereof ``offsetting the
payments to inventors,''; and
(E) by striking ``clauses (i) through (iv) of''; and
(5) by amending paragraph (1) of subsection (b) to read as
follows:
``(1) by a contractor, grantee, or participant, or an employee
of a contractor, grantee, or participant, in an agreement or other
arrangement with the agency, or''.
SEC. 6. EMPLOYEE ACTIVITIES.
Section 15(a) of the Stevenson-Wydler Technology Innovation Act of
1980 (15 U.S.C. 3710d(a)) is amended--
(1) by striking ``the right of ownership to an invention under
this Act'' and inserting in lieu thereof ``ownership of or the
right of ownership to an invention made by a Federal employee'';
and
(2) by inserting ``obtain or'' after ``the Government, to''.
SEC. 7. AMENDMENT TO BAYH-DOLE ACT.
Section 210(e) of title 35, United States Code, is amended by
striking ``, as amended by the Federal Technology Transfer Act of
1986,''.
SEC. 8. NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY ACT AMENDMENTS.
The National Institute of Standards and Technology Act (15 U.S.C.
271 et seq.) is amended--
(1) in section 10(a)--
(A) by striking ``nine'' and inserting in lieu thereof
``15''; and
(B) by striking ``five'' and inserting in lieu thereof
``10'';
(2) in section 15--
(A) by striking ``Pay Act of 1945; and'' and inserting in
lieu thereof ``Pay Act of 1945;''; and
(B) by inserting ``; and (h) the provision of
transportation services for employees of the Institute between
the facilities of the Institute and nearby public
transportation, notwithstanding section 1344 of title 31,
United States Code'' after ``interests of the Government''; and
(3) in section 19--
(A) by inserting ``, subject to the availability of
appropriations,'' after ``post-doctoral fellowship program'';
and
(B) by striking ``nor more than forty'' and inserting in
lieu thereof ``nor more than 60''.
SEC. 9. RESEARCH EQUIPMENT.
Section 11(i) of the Stevenson-Wydler Technology Innovation Act of
1980 (15 U.S.C. 3710(i)) is amended by inserting ``loan, lease, or''
before ``give''.
SEC. 10. PERSONNEL.
The personnel management demonstration project established under
section 10 of the National Bureau of Standards Authorization Act for
Fiscal Year 1987 (15 U.S.C. 275 note) is extended indefinitely.
SEC. 11. FASTENER QUALITY ACT AMENDMENTS.
(a) Section 2 Amendments.--Section 2 of the Fastener Quality Act
(15 U.S.C. 5401) is amended--
(1) by striking subsection (a)(4), and redesignating paragraphs
(5) through (9) as paragraphs (4) through (8), respectively;
(2) in subsection (a)(7), as so redesignated by paragraph (1)
of this subsection, by striking ``by lot number''; and
(3) in subsection (b), by striking ``used in critical
applications'' and inserting in lieu thereof ``in commerce''.
(b) Section 3 Amendments.--Section 3 of the Fastener Quality Act
(15 U.S.C. 5402) is amended--
(1) in paragraph (1)(B) by striking ``having a minimum tensile
strength of 150,000 pounds per square inch'';
(2) in paragraph (2), by inserting ``consensus'' after ``or any
other'';
(3) in paragraph (5)--
(A) by inserting ``or'' after ``standard or
specification,'' in subparagraph (B);
(B) by striking ``or'' at the end of subparagraph (C);
(C) by striking subparagraph (D); and
(D) by inserting ``or produced in accordance with ASTM F
432'' after ``307 Grade A'';
(4) in paragraph (6) by striking ``other person'' and inserting
in lieu thereof ``government agency'';
(5) in paragraph (8) by striking ``Standard'' and inserting in
lieu thereof ``Standards'';
(6) by striking paragraph (11) and redesignating paragraphs
(12) through (15) as paragraphs (11) through (14), respectively;
(7) in paragraph (13), as so redesignated by paragraph (6) of
this subsection, by striking ``, a government agency'' and all that
follows through ``markings of any fastener'' and inserting in lieu
thereof ``or a government agency''; and
(8) in paragraph (14), as so redesignated by paragraph (6) of
this subsection, by inserting ``for the purpose of achieving a
uniform hardness'' after ``quenching and tempering''.
(c) Section 4 Repeal.--Section 4 of the Fastener Quality Act (15
U.S.C. 5403) is repealed.
(d) Section 5 Amendments.--Section 5 of the Fastener Quality Act
(15 U.S.C. 5404) is amended--
(1) in subsection (a)(1)(B) and (2)(A)(i) by striking
``subsections (b) and (c)'' and inserting in lieu thereof
``subsections (b), (c), and (d)'';
(2) in subsection (c)(2) by striking ``or, where applicable''
and all that follows through ``section 7(c)(1)'';
(3) in subsection (c)(3) by striking ``, such as the chemical,
dimensional, physical, mechanical, and any other'';
(4) in subsection (c)(4) by inserting ``except as provided in
subsection (d),'' before ``state whether''; and
(5) by adding at the end the following new subsection:
``(d) Alternative Procedure for Chemical Characteristics.--
Notwithstanding the requirements of subsections (b) and (c), a
manufacturer shall be deemed to have demonstrated, for purposes of
subsection (a)(1), that the chemical characteristics of a lot conform
to the standards and specifications to which the manufacturer
represents such lot has been manufactured if the following requirements
are met:
``(1) The coil or heat number of metal from which such lot was
fabricated has been inspected and tested with respect to its
chemical characteristics by a laboratory accredited in accordance
with the procedures and conditions specified by the Secretary under
section 6.
``(2) Such laboratory has provided to the manufacturer, either
directly or through the metal manufacturer, a written inspection
and testing report, which shall be in a form prescribed by the
Secretary by regulation, listing the chemical characteristics of
such coil or heat number.
``(3) The report described in paragraph (2) indicates that the
chemical characteristics of such coil or heat number conform to
those required by the standards and specifications to which the
manufacturer represents such lot has been manufactured.
``(4) The manufacturer demonstrates that such lot has been
fabricated from the coil or heat number of metal to which the
report described in paragraphs (2) and (3) relates.
In prescribing the form of report required by subsection (c), the
Secretary shall provide for an alternative to the statement required by
subsection (c)(4), insofar as such statement pertains to chemical
characteristics, for cases in which a manufacturer elects to use the
procedure permitted by this subsection.''.
(e) Section 6 Amendment.--Section 6(a)(1) of the Fastener Quality
Act (15 U.S.C. 5405(a)(1)) is amended by striking ``Within 180 days
after the date of enactment of this Act, the'' and inserting in lieu
thereof ``The''.
(f) Section 7 Amendments.--Section 7 of the Fastener Quality Act
(15 U.S.C. 5406) is amended--
(1) by amending subsection (a) to read as follows:
``(a) Domestically Produced Fasteners.--It shall be unlawful for a
manufacturer to sell any shipment of fasteners covered by this Act
which are manufactured in the United States unless the fasteners--
``(1) have been manufactured according to the requirements of
the applicable standards and specifications and have been inspected
and tested by a laboratory accredited in accordance with the
procedures and conditions specified by the Secretary under section
6; and
``(2) an original laboratory testing report described in
section 5(c) and a manufacturer's certificate of conformance are on
file with the manufacturer, or under such custody as may be
prescribed by the Secretary, and available for inspection.'';
(2) in subsection (c)(2) by inserting ``to the same'' after
``in the same manner and'';
(3) in subsection (d)(1) by striking ``certificate'' and
inserting in lieu thereof ``test report''; and
(4) by striking subsections (e), (f), and (g) and inserting in
lieu thereof the following:
``(e) Commingling.--It shall be unlawful for any manufacturer,
importer, or private label distributor to commingle like fasteners from
different lots in the same container, except that such manufacturer,
importer, or private label distributor may commingle like fasteners of
the same type, grade, and dimension from not more than two tested and
certified lots in the same container during repackaging and plating
operations. Any container which contains fasteners from two lots shall
be conspicuously marked with the lot identification numbers of both
lots.
``(f) Subsequent Purchaser.--If a person who purchases fasteners
for any purpose so requests either prior to the sale or at the time of
sale, the seller shall conspicuously mark the container of the
fasteners with the lot number from which such fasteners were taken.''.
(g) Section 9 Amendment.--Section 9 of the Fastener Quality Act (15
U.S.C. 5408) is amended by adding at the end the following new
subsection:
``(d) Enforcement.--The Secretary may designate officers or
employees of the Department of Commerce to conduct investigations
pursuant to this Act. In conducting such investigations, those officers
or employees may, to the extent necessary or appropriate to the
enforcement of this Act, exercise such authorities as are conferred
upon them by other laws of the United States, subject to policies and
procedures approved by the Attorney General.''.
(h) Section 10 Amendments.--Section 10 of the Fastener Quality Act
(15 U.S.C. 5409) is amended--
(1) in subsections (a) and (b), by striking ``10 years'' and
inserting in lieu thereof ``5 years''; and
(2) in subsection (b), by striking ``any subsequent'' and
inserting in lieu thereof ``the subsequent''.
(i) Section 13 Amendment.--Section 13 of the Fastener Quality Act
(15 U.S.C. 5412) is amended by striking ``within 180 days after the
date of enactment of this Act''.
(j) Section 14 Repeal.--Section 14 of the Fastener Quality Act (15
U.S.C. 5413) is repealed.
SEC. 12. STANDARDS CONFORMITY.
(a) Use of Standards.--Section 2(b) of the National Institute of
Standards and Technology Act (15 U.S.C. 272(b)) is amended--
(1) in paragraph (2), by striking ``, including comparing
standards'' and all that follows through ``Federal Government'';
(2) by redesignating paragraphs (3) through (11) as paragraphs
(4) through (12), respectively; and
(3) by inserting after paragraph (2) the following new
paragraph:
``(3) to compare standards used in scientific investigations,
engineering, manufacturing, commerce, industry, and educational
institutions with the standards adopted or recognized by the
Federal Government and to coordinate the use by Federal agencies of
private sector standards, emphasizing where possible the use of
standards developed by private, consensus organizations;''.
(b) Conformity Assessment Activities.--Section 2(b) of the National
Institute of Standards and Technology Act (15 U.S.C. 272(b)) is
amended--
(1) by striking ``and'' at the end of paragraph (11), as so
redesignated by subsection (a)(2) of this section;
(2) by striking the period at the end of paragraph (12), as so
redesignated by subsection (a)(2) of this section, and inserting in
lieu thereof ``; and''; and
(3) by adding at the end the following new paragraph:
``(13) to coordinate Federal, State, and local technical
standards activities and conformity assessment activities, with
private sector technical standards activities and conformity
assessment activities, with the goal of eliminating unnecessary
duplication and complexity in the development and promulgation of
conformity assessment requirements and measures.''.
(c) Transmittal of Plan to Congress.--The National Institute of
Standards and Technology shall, within 90 days after the date of
enactment of this Act, transmit to the Congress a plan for implementing
the amendments made by this section.
(d) Utilization of Consensus Technical Standards by Federal
Agencies; Reports.--
(1) In general.--Except as provided in paragraph (3) of this
subsection, all Federal agencies and departments shall use
technical standards that are developed or adopted by voluntary
consensus standards bodies, using such technical standards as a
means to carry out policy objectives or activities determined by
the agencies and departments.
(2) Consultation; participation.--In carrying out paragraph (1)
of this subsection, Federal agencies and departments shall consult
with voluntary, private sector, consensus standards bodies and
shall, when such participation is in the public interest and is
compatible with agency and departmental missions, authorities,
priorities, and budget resources, participate with such bodies in
the development of technical standards.
(3) Exception.--If compliance with paragraph (1) of this
subsection is inconsistent with applicable law or otherwise
impractical, a Federal agency or department may elect to use
technical standards that are not developed or adopted by voluntary
consensus standards bodies if the head of each such agency or
department transmits to the Office of Management and Budget an
explanation of the reasons for using such standards. Each year,
beginning with fiscal year 1997, the Office of Management and
Budget shall transmit to Congress and its committees a report
summarizing all explanations received in the preceding year under
this paragraph.
(4) Definition of technical standards.--As used in this
subsection, the term ``technical standards'' means performance-
based or design-specific technical specifications and related
management systems practices.
SEC. 13. SENSE OF CONGRESS.
It is the sense of the Congress that the Malcolm Baldrige National
Quality Award program offers substantial benefits to United States
industry, and that all funds appropriated for such program should be
spent in support of the goals of the program.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.