[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2196 Referred in Senate (RFS)]
1st Session
H. R. 2196
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 13, 1995
Received; read twice and referred to the Committee on Commerce,
Science, and Transportation
_______________________________________________________________________
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 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 if the Government finds 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).
``(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 a 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--
(1) by inserting ``loan, lease,'' after ``department,
may''; and
(2) by inserting ``Actions taken under this subsection
shall not be subject to Federal requirements on the disposal of
property.'' after ``education and research activities.''.
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, local, and private
sector standards 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, by January 1, 1996, transmit to the
Congress a plan for implementing the amendments made by this section.
(d) Utilization of Consensus Standards by Federal Agencies;
Reports.--(1) To the extent practicable, all Federal agencies and
departments shall use, for procurement and regulatory applications,
standards that are developed or adopted by voluntary, private sector,
consensus standards bodies.
(2) Federal agencies and departments shall consult with voluntary,
private sector, consensus standards bodies, and shall participate with
such bodies in the development of standards, as appropriate in carrying
out paragraph (1).
(3) If a Federal agency or department elects to develop, for
procurement or regulatory applications, standards that are not
developed or adopted by voluntary, private sector, consensus standards
bodies, the head of such agency or department shall transmit to the
Office of Management and Budget, via the National Institute of
Standards and Technology, an explanation of the reasons for developing
such standards. The Office of Management and Budget, with the
assistance of the National Institute of Standards and Technology, shall
annually transmit to the Congress explanations concerning exceptions
made under this subsection.
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.
Passed the House of Representatives December 12, 1995.
Attest:
ROBIN H. CARLE,
Clerk.