[Federal Register Volume 81, Number 51 (Wednesday, March 16, 2016)]
[Proposed Rules]
[Pages 14021-14022]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-05838]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1250

[Doc. No. AMS-LPS-15-0042]


Egg Research and Promotion: Updates to Patents, Copyrights, 
Trademarks, and Information Provisions

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would update the Patents, Copyrights, 
Trademarks, and Information Language (IP) of the Egg Research and 
Promotion Rules and Regulations (Regulations). The proposed amendment 
would model current commodity research and promotion program orders 
created under the Commodity Promotion, Research, and Information Act of 
1996.

DATES: Comments must be received by May 16, 2016.

FOR FURTHER INFORMATION CONTACT: Kenneth R. Payne, Research and 
Promotion Division; Livestock, Poultry, and Seed Program; AMS, USDA; 
1400 Independence Avenue SW., Room 2096-S; Washington, DC 20250; 
telephone: (202) 720-5705; fax (202) 720-1125; or email: 
[email protected].

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    The Office of Management and Budget (OMB) has waived the review 
process required by Executive Order 12866 for this action.

Executive Order 12988

    This proposed rule was reviewed under Executive Order 12988, Civil 
Justice Reform. It is not intended to have a retroactive effect. This 
action would not preempt any State or local laws, regulations, or 
policies unless they present an irreconcilable conflict with this 
proposed rule. The Egg Research and Consumer Information Act (Act), 7 
U.S.C. 2701 et seq., provides that administrative proceedings be filed 
before parties may consider suit in court. Under section 14 of the Act, 
7 U.S.C. 2713, a person subject to the Egg Promotion and Research Order 
(Order) may file a petition with the U.S. Department of Agriculture 
(USDA) stating that the Order, any provision of the Order, or any 
obligation imposed in connection with the Order, is not in accordance 
with the law and request a modification of the Order or an exemption 
from the Order. The petitioner is afforded the opportunity for a 
hearing on the petition. After a hearing, USDA would rule on the 
petition. The Act provides that district courts of the United States in 
any district in which such person is an inhabitant, or has their 
principal place of business, has jurisdiction to review USDA's ruling 
on the petition, if a complaint for this purpose is filed within 20 
days after the date of the entry of the ruling.

Regulatory Flexibility Act

    In accordance with the Regulatory Flexibility Act (RFA) [5 U.S.C. 
601-612], the Agricultural Marketing Service (AMS) has determined that 
this rule will not have a significant economic impact on a substantial 
number of small entities as defined by RFA. The purpose of RFA is to 
fit regulatory action to scale on businesses subject to such action so 
that small businesses will not be disproportionately burdened. As such, 
these changes will not impose a significant impact on persons subject 
to the program.
    According to the American Egg Board (Board), around 181 producers 
are subject to the provisions of the Order, including paying 
assessments. Under the current Order, producers in the 48 contiguous 
United States and the District of Columbia who own more than 75,000 
laying hens each currently pay a mandatory assessment of 10 cents per 
30-dozen case of eggs. Handlers are

[[Page 14022]]

responsible for collecting and remitting assessments to the Board. 
There are approximately 138 egg handlers who collect assessments. 
Assessments under the program are used by the Board to finance 
promotion, research, and consumer information programs designed to 
increase consumer demand for eggs in domestic and international 
markets.
    In 13 CFR part 121, the Small Business Administration (SBA) defines 
small agricultural producers as those having annual receipts of no more 
than $750,000 and small agricultural service firms as those having 
annual receipts of no more than $7 million. Under this definition, the 
vast majority of the egg producers that would be affected by this 
rulemaking would not be considered small entities. Producers owning 
75,000 or fewer laying hens are eligible to be exempt from this 
program. This rulemaking does not impose additional recordkeeping 
requirements on egg producers or collecting handlers. There are no 
federal rules that duplicate, overlap, or conflict with this proposed 
rule.

Paperwork Reduction Act

    In accordance with OMB regulation 5 CFR part 1320, which implements 
the Paperwork Reduction Act of 1995 [44 U.S.C. Chapter 35], the 
information collection and recordkeeping requirements that are imposed 
by the Order and Rules and Regulations have been approved previously 
under OMB control number 0581-0093. This proposed rule does not result 
in a change to those information collection and recordkeeping 
requirements.

Background

    The Act established a national egg research and promotion program--
administered by the Board--that is financed through industry 
assessments and subject to oversight by USDA's Agricultural Marketing 
Service. This program of promotion, research, and consumer information 
is designed to strengthen the position of eggs in the marketplace and 
to establish, maintain, and expand markets for eggs.
    Under the current Regulations initially established in 1976, any IP 
financed by assessment funds or other revenues of the Board shall 
become property of the U.S. Government as represented by the Board. The 
language does not allow for alternative ownership arrangements. In 
addition, there is no explicit allowance for alternative ownership 
arrangements in cases where the Board is not providing all of the 
funding for a project. The current language in the Regulation has made 
negotiating contracts for shared ownership of IP rights with research 
entities difficult and in some cases impossible. Specifically, a 
majority of university policies typically reflect a requirement for the 
university to own any IP created under research projects they conduct, 
even if the project is funded with outside money. These university 
policies have made it difficult for the Board to contract with 
universities for research due to the IP ownership requirements 
contained in the Regulation. As a result, USDA is proposing to amend 
Sec.  1250.542 of the Regulations to incorporate language utilized by 
research and promotion boards created under the Commodity Promotion, 
Research, and Information Act of 1996, 7 U.S.C. 7411 et seq., that 
would provide the Board with some flexibility in negotiating the 
ownership of IP rights.
    The research and promotion boards created under the Commodity 
Promotion, Research and Information Act of 1996 have utilized the 
language proposed herein to negotiate IP ownership rights to 
effectively expend assessment funds to promote agricultural 
commodities. Currently, the Regulations state that IP accruing from 
work funded by the Board shall become property of the U.S Government as 
represented by the Board and that IP may be licensed subject to 
approval by the Secretary of Agriculture (Secretary). This proposed 
rule would change the language to allow that ownership of any IP 
developed during a project funded by the Board to be determined by 
agreement between the Board and another party, which will provide the 
Board with the flexibility it needs to negotiate contracts for projects 
that may involve IP rights.

List of Subjects in 7 CFR Part 1250

    Administrative practice and procedure, Advertising, Agricultural 
research, Eggs and egg products, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, it is proposed that 7 
CFR part 1250 be amended as follows:

PART 1250--EGG RESEARCH AND PROMOTION

0
1. The authority citation of 7 CFR part 1250 continues to read as 
follows:

    Authority:  7 U.S.C. 2701-2718 and 7 U.S.C. 7401.

0
2. Revise Sec.  1250.542 to read as follows:


Sec.  1250.542  Patents, copyrights, inventions, trademarks, 
information, publications, and product formulations.

    (a) Any patents, copyrights, inventions, trademarks, information, 
publications, or product formulations developed through the use of 
funds collected by the Board under the provisions of this subpart shall 
be the property of the U.S. Government, as represented by the Board, 
and shall, along with any rents, royalties, residual payments, or other 
income from the rental, sales, leasing, franchising, or other uses of 
such patents, copyrights, inventions, trademarks, information, 
publications, or product formulations, inure to the benefit of the 
Board; shall be considered income subject to the same fiscal, budget, 
and audit controls as other funds of the Board; and may be licensed 
subject to approval by the Secretary. Upon termination of this subpart, 
Sec.  1250.358 shall apply to determine disposition of all such 
property.
    (b) Should patents, copyrights, inventions, trademarks, 
information, publications, or product formulations be developed through 
the use of funds collected by the Board under this subpart and funds 
contributed by another organization or person, ownership and related 
rights to such patents, copyrights, inventions, trademarks, 
information, publications, or product formulations shall be determined 
by agreement between the Board and the party contributing funds towards 
the development of such patents, copyrights, inventions, trademarks, 
information, publications, or product formulations in a manner 
consistent with paragraph (a) of this section.

    Dated: March 10, 2016.
Elanor Starmer,
Acting Administrator.
[FR Doc. 2016-05838 Filed 3-15-16; 8:45 am]
 BILLING CODE 3410-02-P