[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2196 Reported in House (RH)]

                                                 Union Calendar No. 197

104th CONGRESS

  1st Session

                               H. R. 2196

                          [Report No. 104-390]

_______________________________________________________________________

                                 A BILL

 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.

_______________________________________________________________________

                            December 7, 1995

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
                                                 Union Calendar No. 197
104th CONGRESS
  1st Session
                                H. R. 2196

                          [Report No. 104-390]

 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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 4, 1995

Mrs. Morella (for herself, Mr. Walker, Mr. Brown of California, and Mr. 
   Tanner) introduced the following bill; which was referred to the 
                          Committee on Science

                            December 7, 1995

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
[For text of introduced bill, see copy of bill as introduced on August 
                                4, 1995]

_______________________________________________________________________

                                 A BILL


 
 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 
        subparagraphs (B) (ii) and (iii) 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 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, 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'' and 
        inserting in lieu thereof ``having a minimum Rockwell C 
        hardness of 40 or above'';
            (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 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 use, for 
procurement or regulatory applications, standards that are not 
developed or adopted by voluntary consensus standards bodies, the head 
of such agency or department shall transmit to the Office of Management 
and Budget an explanation of the reasons for adopting such standards. 
The Office of Management and Budget shall annually transmit to the 
Congress all explanations received by it 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.
HR 2196 RH----2