Technology Transfer: Number and Characteristics of Inventions Licensed by
Six Federal Agencies (Letter Report, 06/18/1999, GAO/RCED-99-173).

The federal government provided about $70 billion for research and
development in fiscal year 1998. Federal funds are used to support both
"intramural" programs that involve government employees working in
government facilities and "extramural" programs that are carried out by
nonfederal organizations through contracts and grants. This report
provides information on (1) government-owned inventions licensed by six
federal agencies during fiscal years 1996 through 1998; (2) whether the
licenses were exclusive on nonexclusive; (3) whether the licensees were
small businesses, individuals, large businesses, or nonprofit
organizations; and (4) whether the licensees were foreign or domestic.
The six agencies GAO reviewed are the National Institutes of Health, the
Army, the Navy, the Air Force, the Department of Energy, and NASA. The
six agencies reported that they granted a total of 866 licenses and
received $107.5 million in royalties during fiscal years 1996 through
1998. Most of the licenses were nonexclusive, most went to small
businesses or individuals, and most went to domestic entities.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  RCED-99-173
     TITLE:  Technology Transfer: Number and Characteristics of
	     Inventions Licensed by Six Federal Agencies
      DATE:  06/18/1999
   SUBJECT:  Federal grants
	     Statistical data
	     License agreements
	     Patents
	     Royalty payments
	     Technology transfer
	     Intellectual property
	     Research and development

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    United States General Accounting Office GAO                Report
    to the Honorable Duncan L. Hunter, House of Representatives June
    1999          TECHNOLOGY TRANSFER Number and Characteristics of
    Inventions Licensed by Six Federal Agencies GAO/RCED-99-173 GAO
    United States General Accounting Office Washington, D.C. 20548
    Resources, Community, and Economic Development Division B-281432
    June 18, 1999 The Honorable Duncan L. Hunter House of
    Representatives Dear Mr. Hunter: The federal government, a major
    sponsor of research and development, provided about $70 billion in
    funding for this purpose in fiscal year 1998. Federal funds are
    used to support both "intramural" programs that involve government
    employees working in government facilities and "extramural"
    programs that are carried out by nonfederal organizations through
    contracts and grants.1 In some cases, federally sponsored research
    leads to the creation of new products and processes that can be
    patented and commercialized. Generally, when a federal employee
    creates an invention within the scope of his or her employment,
    the applicable agency retains title, may license the invention to
    third parties, and may receive royalties under the license. When a
    contractor or grantee creates the invention, however, the
    contractor or grantee generally is allowed to take title to,
    license, and receive royalties on the invention. You requested
    that we provide statistical information on the licensing of
    government-owned inventions created under federally funded
    research projects. This report provides information on (1)
    government-owned inventions licensed by six federal agencies
    during fiscal years 1996 through 1998, including the royalties
    received during that period, and the total number of active
    licenses these agencies had as of October 1, 1998; (2) whether the
    licenses were exclusive or nonexclusive; (3) whether the licensees
    were small businesses, individuals, large businesses, or nonprofit
    organizations; and (4) whether the licensees were foreign or
    domestic. Generally, an "exclusive license" conveys the right to
    make, use, or sell the invention to only one licensee, while a
    "nonexclusive license" can convey all or a portion of these rights
    to multiple licensees. A "small business" is a for-profit entity
    with 500 or fewer employees; a "large business" is a for-profit
    entity with more than 500 employees; and a "nonprofit" is any
    other organization. A "domestic" licensee is one incorporated or
    headquartered in the United States, while all other licensees are
    considered "foreign." The six agencies are the National Institutes
    of Health, within the Department of Health and Human Services;
    1Some agencies, such as the Department of Energy, use contractors
    to operate federally owned facilities. This report concerns only
    government-owned inventions and thus does not include any
    statistics for contractor-owned inventions created in federally
    owned laboratories. Page 1
    GAO/RCED-99-173 Federal Licensing Statistics B-281432 the
    departments of the Army, the Navy, and the Air Force; the
    Department of Energy; and the National Aeronautics and Space
    Administration. Results in Brief    The six agencies reported that
    they granted a total of 866 licenses and received $107.5 million
    in royalties during fiscal years 1996 through 1998. As shown in
    figure 1, most of the licenses were nonexclusive, most went to
    small businesses or individuals, and most went to domestic
    entities. Page 2                                GAO/RCED-99-173
    Federal Licensing Statistics B-281432 Figure 1: Characteristics of
    Licenses and Licensees Unknown 2%
    1% Other                                      6% Nonprofit 25%
    Exclusive Large business 33% 60%
    Small/Individual business 73%
    Nonexclusive 11%                      Foreign 89%
    Domestic Source: GAO's presentation of data from the National
    Institutes of Health (NIH); the departments of the Army, the Navy,
    and the Air Force (USAF); the Department of Energy (DOE); and the
    National Aeronautics and Space Administration (NASA). As of
    October 1, 1998, the six agencies had a total of 1,391 active
    licenses. The license types, licensee types, and licensee
    locations occurred in Page 3
    GAO/RCED-99-173 Federal Licensing Statistics B-281432 proportions
    similar to those licenses granted during fiscal years 1996 through
    1998. Background            For multiple and diverse reasons, the
    U.S. government encourages the licensing and commercialization of
    inventions created under federally sponsored research. These
    reasons include assisting small businesses, promoting
    collaboration between commercial enterprises and nonprofit
    organizations, and encouraging the use of new technology by U.S.
    industry and labor. Under 35 U.S.C. 207, federal agencies are
    authorized to apply for patents and to grant licenses for
    federally owned patent applications and patents. There is no
    comprehensive national database on the licensing of federally
    funded inventions. Recording licenses to third parties is
    permitted at the Patent and Trademark Office, within the
    Department of Commerce, but is not required for either the public
    or government patent holders. When licenses are submitted for
    recording, they are included in an "assignment" database that
    primarily provides a record of patent ownership. However,
    according to Patent and Trademark Office officials, few licenses
    are recorded at their office for inclusion in this database. The
    Government Register, established by executive order in 1944, is a
    subset of the assignment database and is the official record of
    all rights and interests of the U.S. government in and under
    patents. The Government Register is not used to record licenses to
    third parties. Data concerning agency licensing is also published
    by the Department of Commerce as part of its biennial reporting of
    agencies' implementation of the Stevenson-Wydler Technology
    Innovation Act and related legislation.2 Annual Licenses       The
    number of new licenses granted annually by the six federal
    agencies Granted Have          remained relatively constant for
    the 3 fiscal years, with 279 in fiscal year 1996, 292 in fiscal
    year 1997, and 295 in fiscal year 1998. As shown in figure
    Remained Constant,    2, royalty revenues increased from $28.3
    million in fiscal year 1996 to but Royalties Have    $41.9 million
    in fiscal year 1998, an increase of 48.1 percent (see app. I).
    Increased 2Under the Stevenson-Wydler Technology Innovation Act of
    1980, as amended, it is the policy of the federal government,
    where appropriate, to transfer federally owned or originated
    technology to state and local governments and to the private
    sector (15 U.S.C. 3710(a)). As part of its responsibility under
    this act, the Secretary of Commerce is required to submit biennial
    reports to the President and the Congress on agencies' use of the
    act's authorities (15 U.S.C. 3710(g)(2)). Page 4
    GAO/RCED-99-173 Federal Licensing Statistics B-281432 Figure 2:
    Royalties Received by Six Federal Agencies, Fiscal Years 1996
    50    Dollars in Millions Through 1998 40 30 20 10 0 1996
    1997    1998 Fiscal Year Source: GAO's presentation of data from
    NIH, the Army, the Navy, the USAF, DOE, and NASA. As shown in
    figure 3, NIH was by far the largest licensor among the six
    agencies, accounting for 607, or 70.1 percent, of the total
    licenses granted over the 3 fiscal years. NIH also had the
    majority of active licenses, with 990, or 71.1 percent, of the
    1,391 licenses active as of October 1, 1998. Page 5
    GAO/RCED-99-173 Federal Licensing Statistics B-281432 Figure 3:
    Licenses Granted by Six Federal Agencies, Fiscal Years 1996
    1200 Number of licenses Through 1998 and Active as of October 1,
    1998 1000 800 600 120 100 80 60 40 20 0 NIH               Army
    Navy        USAF         DOE          NASA Agency Fiscal years
    1996 through 1998 Active as of October 1, 1998 Source: GAO's
    presentation of data from the agencies cited. As shown in table 1,
    NIH also had the largest share of total royalty payments received
    during fiscal years 1996 through 1998, accounting for $102.2
    million, or 95.1 percent, of the $107.5 million received by the
    six agencies. Page 6
    GAO/RCED-99-173 Federal Licensing Statistics B-281432 Table 1:
    Royalties Received by Six Federal Agencies, Fiscal Years 1996
    Percentage of total Through 1998                           Agency
    Royalties received                      royalties NIH
    $102,200,000                         95.1 The Army
    1,030,537                         1.0 The Navy
    1,765,006                         1.6 The USAF
    560,000                         0.5 DOE
    435,175                         0.4 NASA
    1,470,280                         1.4 Total
    $107,460,998                          100 Source: GAO's
    presentation of data from the agencies cited. Most Licenses Were
    Most of the licenses reported by the six agencies were
    nonexclusive. Nonexclusive                           Nonexclusive
    licenses accounted for 634, or 73.2 percent, of the licenses
    granted during fiscal years 1996 through 1998 and for 963, or 69.2
    percent, of the licenses active as of October 1, 1998. As shown in
    figures 4 and 5, the individual agencies varied widely by the type
    of license granted. NIH reported that 514, or 84.7 percent, of its
    licenses granted during the 3 fiscal years and 769, or 77.7
    percent, of its active licenses were nonexclusive. NIH granted
    more licenses than the other five agencies combined, and because
    of the amounts for NIH, the percentage of nonexclusive licenses
    for these five agencies was much smaller than for all six agencies
    combined. While DOE also had a high proportion of nonexclusive
    licenses, the other four agencies had far smaller proportions and,
    in some cases, had more exclusive than nonexclusive licenses (see
    apps. III and IV). Page 7
    GAO/RCED-99-173 Federal Licensing Statistics B-281432 Figure 4:
    Types of Licenses Granted by Six Federal Agencies, Fiscal Years
    600    Number of licenses 1996 Through 1998 500 400 100 80 60 40
    20 0 NIH                    Army    Navy          USAF         DOE
    NASA Agency Exclusive Nonexclusive Other Source: GAO's
    presentation of data from the agencies cited. Page 8
    GAO/RCED-99-173 Federal Licensing Statistics B-281432 Figure 5:
    Types of Licenses Granted by Six Federal Agencies, Active as of
    900    Number of licenses October 1, 1998 800 700 200 150 80 70 60
    50 40 30 20 10 0 NIH                Army      Navy           USAF
    DOE          NASA Agency Exclusive Nonexclusive Other Source:
    GAO's presentation of data from the agencies cited. Most Licensees
    Were                      Small businesses and individuals
    represented the largest segment of Small Businesses and
    licensees for government-owned inventions. Small businesses and
    individuals accounted for 518, or 59.8 percent, of all licenses
    granted Individuals                              during fiscal
    years 1996 through 1998 and for 744, or 53.5 percent, of the
    licenses active as of October 1, 1998. Large businesses accounted
    for more than a third of licenses granted over the 3-year period
    as well as for active licenses. Nonprofit organizations accounted
    for only 54, or 6.2 percent, of the licenses granted during the 3
    fiscal years and 40, or 2.9 percent, of the active licenses. Page
    9                                          GAO/RCED-99-173 Federal
    Licensing Statistics B-281432 As shown in figures 6 and 7, the
    individual agencies were consistent in granting a majority of
    their licenses to small businesses and individuals. The only
    exception was the Army, which reported that small businesses and
    individuals accounted for 9, or 19.1 percent, of the licenses it
    granted in fiscal years 1996 through 1998 and for 20, or 21.5
    percent, of active licenses (see apps. V and VI). Figure 6:
    Licenses Granted by Six Federal Agencies, by Licensee Type and
    Agency, Fiscal Years 1996 Through 1998 400 Number of licenses 350
    300 250 200 100 80 60 40 20 0 NIH                Army
    Navy                         USAF               DOE
    NASA Agency Large Small/Individual Nonprofit Unknown Source: GAO's
    presentation of data from the agencies cited. Page 10
    GAO/RCED-99-173 Federal Licensing Statistics B-281432 Figure 7:
    Licenses by Licensee Type and Agency, Active as of October 1, 1998
    600    Number of licenses 500 400 100 80 60 40 20 0 NIH
    Army            Navy                          USAF             DOE
    NASA Agency Large Small/Individual Nonprofit Unknown Source: GAO's
    presentation of data from the agencies cited. Most Licensees Were
    The majority of licenses went to domestic entities. Of the
    licenses granted Located in the United                     in
    fiscal years 1996 through 1998, 767, or 88.6 percent, went to
    domestic entities, as did 1,177 or 84.6 percent of the licenses
    active as of October 1, States
    1998. Figures 8 and 9 show that the individual agencies generally
    were consistent in granting a majority of their licenses to
    domestic entities, with Page 11
    GAO/RCED-99-173 Federal Licensing Statistics B-281432 all six
    agencies reporting at least 80 percent of their licenses as
    domestic. Most of the licenses that went to foreign entities had
    been granted by NIH (see apps. VII and VIII). Figure 8: Licenses
    Granted by Licensee's Location and Agency,    600    Number of
    licenses Fiscal Years 1996 Through 1998 500 120 100 80 60 40 20 0
    NIH                   Army    Navy            USAF         DOE
    NASA Agency Domestic Foreign Source: GAO's presentation of data
    from the agencies cited. Page 12
    GAO/RCED-99-173 Federal Licensing Statistics B-281432 Figure 9:
    Licenses by Licensee's Location and Agency, Active as of    900
    Number of licenses October 1, 1998 800 700 200 150 100 50 0 NIH
    Army    Navy          USAF        DOE          NASA Agency
    Domestic Foreign Source: GAO's presentation of data from the
    agencies cited. Agency Comments                      We provided
    copies of a draft of this report to the National Aeronautics and
    Our Evaluation                   and Space Administration, the
    Department of Commerce, the Department of Energy, the Department
    of Defense, and the National Institutes of Health for review and
    comment. The National Aeronautics and Space Administration
    responded that it had no comments. Each of the other Page 13
    GAO/RCED-99-173 Federal Licensing Statistics B-281432 agencies
    recommended various changes and clarifications to the report, and
    we made changes as appropriate. The Department of Commerce
    suggested that we acknowledge, in our introduction, that there are
    government-owned facilities operated by contractors where the
    inventions are not government-owned, and, consequently, statistics
    on these inventions are not included in our report. We revised the
    report in response. Commerce also suggested that we explain that
    some of the agencies are parts of departments where there are also
    other agencies conducting research and that our report does not
    provide statistics on these other agencies. While we agree that
    these other agencies conduct research, we did not make changes in
    this regard because the report already explains that the
    statistics included were limited to the six specific agencies
    named and that the six agencies are among the largest in terms of
    research funding and patents. In addition, Commerce suggested that
    we add information to the background section of the report to
    provide a better characterization of certain databases maintained
    by the Patent and Trademark Office and to note that Commerce
    provides a biennial report on agency licensing. We added these
    clarifications. The Department of Defense, commenting for the
    departments of the Army, the Navy, and the Air Force, suggested a
    number of changes, such as adding footnotes to some of the data in
    the appendixes and making some revisions to license categories. We
    made each of these as appropriate to the statistics presented in
    appendixes in XI through XVI. The Department of Energy requested
    that we include a statement in the report to show that the
    Department receives much of its royalty income from inventions
    created in its laboratories by contractors, even though the
    inventions themselves are not government-owned. We added this
    information as a note to the statistics presented in appendixes
    XVII and XVIII. The National Institutes of Health suggested that
    we restate our definition of "nonexclusive" licenses to note that
    these licenses can convey the same rights as "exclusive" licenses
    but to multiple licensees. We changed the definition as suggested.
    Scope and      Because there is no comprehensive database on the
    licensing of Methodology    government inventions, we obtained our
    statistics directly from selected Page 14
    GAO/RCED-99-173 Federal Licensing Statistics B-281432 funding
    agencies. We asked for information from six agencies-the National
    Institutes of Health; the departments of the Army, the Navy, and
    the Air Force; the Department of Energy; and the National
    Aeronautics and Space Administration. We chose these six agencies
    because they were among the largest agencies in terms of funding
    for research and development during fiscal year 1998, accounting
    for about $54 billion, or 77.4 percent, of the $69.8 billion in
    funding for all federal agencies. Also, they were the six largest
    agencies in terms of patents granted by the Patent and Trademark
    Office to federal agencies during fiscal years 1988 through 1997
    and, according to federal officials knowledgeable with technology
    transfer, among the largest in invention-licensing activities.
    From each agency selected, we requested information for licenses
    granted during fiscal years 1996 through 1998 as well as for
    licenses in effect as of October 1, 1998. We asked the agencies to
    provide statistics regarding (1) license type, or whether the
    licenses were exclusive or nonexclusive; (2) licensee type, or
    whether the inventions were licensed to individuals/small
    businesses, large businesses, or nonprofit organizations; and (3)
    licensee location, or whether the licensees were foreign or
    domestic. We asked the agencies to provide information for both
    government-owned inventions and federally supported inventions
    owned by federal contractors and grantees. However, the agencies
    generally did not collect or maintain information on licenses
    granted to third parties by contractors and grantees. Thus, the
    licensing statistics in this report are limited to government-
    owned inventions. We did not validate or verify the data provided
    by the agencies. However, we contacted agency officials to discuss
    their programs and to obtain answers to any questions we had
    regarding the statistics they had provided. We conducted our work
    from September 1998 through May 1999 in accordance with generally
    accepted government auditing standards. We will send copies of
    this report to the appropriate House and Senate committees;
    interested Members of Congress; the agencies discussed in this
    report; the Honorable Jacob J. Lew, Director, Office of Management
    and Budget; and other interested parties. We will make copies
    available to Page 15                                GAO/RCED-99-
    173 Federal Licensing Statistics B-281432 others upon request. If
    you or your staff have any questions or need additional
    information, please call me at (202) 512-3841. Major contributors
    to this report are listed in appendix XXI. Sincerely yours, Susan
    Kladiva Associate Director, Energy, Resources, and Science Issues
    Page 16                               GAO/RCED-99-173 Federal
    Licensing Statistics Page 17      GAO/RCED-99-173 Federal
    Licensing Statistics Contents Letter
    1 Appendix I
    26 Characteristics of the Licenses Granted and the Royalties
    Received by Six Federal Agencies, Fiscal Years 1996 Through 1998
    Appendix II
    27 Characteristics of the Licenses Granted by Six Federal
    Agencies, Active as of October 1, 1998 Appendix III
    28 Licenses Granted by Six Federal Agencies by License Type,
    Fiscal Years 1996 Through 1998 Appendix IV
    29 Licenses Granted by Six Federal Agencies by License Type,
    Active as of October 1, 1998 Page 18      GAO/RCED-99-173 Federal
    Licensing Statistics Contents Appendix V
    30 Licenses Granted by Six Federal Agencies by Licensee Type,
    Fiscal Years 1996 Through 1998 Appendix VI
    31 Licenses Granted by Six Federal Agencies by Licensee Type,
    Active as of October 1, 1998 Appendix VII
    32 Licenses Granted by Six Federal Agencies by Licensee's
    Location, Fiscal Years 1996 Through 1998 Appendix VIII
    33 Licenses Granted by Six Federal Agencies by Licensee's
    Location, Active as of October 1, 1998 Page 19      GAO/RCED-99-
    173 Federal Licensing Statistics Contents Appendix IX
    34 Characteristics of the Licenses Granted and the Royalties
    Received by the National Institutes of Health, Fiscal Years 1996
    Through 1998 Appendix X
    35 Characteristics of the Licenses Granted by the National
    Institutes of Health, Active as of October 1, 1998 Appendix XI
    36 Characteristics of the Licenses Granted and the Royalties
    Received by the Department of the Army, Fiscal Years 1996 Through
    1998 Page 20      GAO/RCED-99-173 Federal Licensing Statistics
    Contents Appendix XII
    37 Characteristics of the Licenses Granted by the Department of
    the Army, Active as of October 1, 1998 Appendix XIII
    38 Characteristics of the Licenses Granted and the Royalties
    Received by the Department of the Navy, Fiscal Years 1996 Through
    1998 Appendix XIV
    39 Characteristics of the Licenses Granted by the Department of
    the Navy, Active as of October 1, 1998 Page 21      GAO/RCED-99-
    173 Federal Licensing Statistics Contents Appendix XV
    40 Characteristics of the Licenses Granted and the Royalties
    Received by the Department of the Air Force, Fiscal Years 1996
    Through 1998 Appendix XVI
    41 Characteristics of the Licenses Granted by the Department of
    the Air Force, Active as of October 1, 1998 Appendix XVII
    42 Characteristics of the Licenses Granted and the Royalties
    Received by the Department of Energy, Fiscal Years 1996 Through
    1998 Page 22      GAO/RCED-99-173 Federal Licensing Statistics
    Contents Appendix XVIII
    43 Characteristics of the Licenses Granted by the Department of
    Energy, Active as of October 1, 1998 Appendix XIX
    44 Characteristics of the Licenses Granted and the Royalties
    Received by the National Aeronautics and Space Administration,
    Fiscal Years 1996 Through 1998 Appendix XX
    45 Characteristics of the Licenses Granted by the National
    Aeronautics and Space Administration, Active of as October 1, 1998
    Page 23      GAO/RCED-99-173 Federal Licensing Statistics Contents
    Appendix XXI
    46 Major Contacts and Staff Acknowledgements Table
    Table 1: Royalties Received by Six Federal Agencies, Fiscal
    7 Years 1996 Through 1998 Figures               Figure 1:
    Characteristics of Licenses and Licensees
    3 Figure 2: Royalties Received by Six Federal Agencies, Fiscal
    5 Years 1996 Through 1998 Figure 3: Licenses Granted by Six
    Federal Agencies, Fiscal Years                  6 1996 Through
    1998 and Active as of October 1, 1998 Figure 4: Types of Licenses
    Granted by Six Federal Agencies,                      8 Fiscal
    Years 1996 Through 1998 Figure 5: Types of Licenses Granted by Six
    Federal Agencies,                      9 Active as of October 1,
    1998 Figure 6: Licenses Granted by Six Federal Agencies, by
    Licensee                  10 Type and Agency, Fiscal Years 1996
    Through 1998 Figure 7: Licenses by Licensee Type and Agency,
    Active as of                     11 October 1, 1998 Figure 8:
    Licenses Granted by Licensee's Location and Agency,
    12 Fiscal Years 1996 Through 1998 Figure 9: Licenses by Licensee's
    Location and Agency, Active as                  13 of October 1,
    1998 Abbreviations DOE          Department of Energy GAO
    General Accounting Office NASA         National Aeronautics and
    Space Administration NIH          National Institutes of Health
    USAF         United States Air Force Page 24
    GAO/RCED-99-173 Federal Licensing Statistics Page 25
    GAO/RCED-99-173 Federal Licensing Statistics Appendix I
    Characteristics of the Licenses Granted and the Royalties Received
    by Six Federal Agencies, Fiscal Years 1996 Through 1998 Fiscal
    year Description                        1996                1997
    1998                   Total Total licenses granted
    279                  292                 295
    866 License type Exclusive                             81
    70                  65                    216 Nonexclusive
    188                  218                 228
    634 Othera                                10                   4
    2                    16 Licensee type Large business
    100                   92                  96
    288 Small business/ individual                          153
    185                 180                    518 Nonprofit
    20                  15                  19                     54
    Unknown                                6                   0
    0                     6 Licensees' location Domestic
    243                  262                 262
    767 Foreign                               36                  30
    33                     99 Total royalties received
    $28,323,050          $37,270,104         $41,867,844
    $107,460,998 Note: The federal agencies are the National
    Institutes of Health (NIH) within the Department of Health and
    Human Services, the Department of the Army (Army), the Department
    of the Navy (Navy), the Department of the Air Force (Air Force),
    the Department of Energy (DOE); and the National Aeronautics and
    Space Administration (NASA). aIncludes agency responses "co-
    exclusive," "partially exclusive," "assignment," or "combination
    exclusive and nonexclusive." Source: GAO's presentation of data
    from NIH, the Army, the Navy, the Air Force, DOE, and NASA. Page
    26                                           GAO/RCED-99-173
    Federal Licensing Statistics Appendix II Characteristics of the
    Licenses Granted by Six Federal Agencies, Active as of October 1,
    1998 Description
    Number Total active licenses
    1,391 License typea Exclusive
    368 Nonexclusive
    963 Otherb
    60 Licensee type Large business
    555 Small business/individual
    744 Nonprofit
    40 Unknown
    52 Licensees' location Domestic
    1,177 Foreign
    214 aThe Navy's license total of 83 includes only licenses from
    which the Navy received royalties in fiscal years 1996, 1997,
    and/or 1998, except for assignments. bIncludes agency responses
    "co-exclusive," "partially exclusive," "assignment," or
    "combination exclusive and nonexclusive." Source: GAO's
    presentation of data from NIH, the Army, the Navy, the Air Force,
    DOE, and NASA. Page 27
    GAO/RCED-99-173 Federal Licensing Statistics Appendix III Licenses
    Granted by Six Federal Agencies by License Type, Fiscal Years 1996
    Through 1998 Funding agency Type             NIH    Army
    Navy           Air Force             DOE                NASA
    Total Exclusive         87       28               17
    9                3                 72          216 Nonexclusive
    514       19               24                  10               28
    39          634 Othera             6         0                4
    6                0                   0          16 Total
    607       47               45                  25               31
    111          866 aIncludes agency responses "co-exclusive,"
    "partially exclusive," "assignment," or "combination exclusive and
    nonexclusive." Source: GAO's presentation of data from the
    agencies cited. Page 28
    GAO/RCED-99-173 Federal Licensing Statistics Appendix IV Licenses
    Granted by Six Federal Agencies by License Type, Active as of
    October 1, 1998 Funding agency Type            NIH    Army
    Navya            Air Force              DOE                NASA
    Total Exclusive       200        44               29
    13                11                  71                     368
    Nonexclusive    769        32               46                  17
    62                  37                     963 Otherb           21
    17                8                  14                 0
    0                     60 Total           990        93
    83                  44                73                 108
    1,391 aThe Navy's license total includes only licenses from which
    the Navy received royalties in fiscal years 1996, 1997, and/or
    1998, except for assignments. bIncludes agency responses "co-
    exclusive," "partially exclusive," "assignment," or "combination
    exclusive and nonexclusive." Source: GAO's presentation of data
    from the agencies cited. Page 29
    GAO/RCED-99-173 Federal Licensing Statistics Appendix V Licenses
    Granted by Six Federal Agencies by Licensee Type, Fiscal Years
    1996 Through 1998 Funding agency Type                   NIH
    Armya            Navy               Air Force           DOE
    NASA                 Total Large business         223        30
    12                    2                8                  13
    288 Small business/individual    346         9               30
    16              23                   94                     518
    Nonprofit               38         8                3
    1                0                    4                    54
    Unknown                  0         0                0
    6                0                    0                     6
    Total                  607        47               45
    25              31                  111                     866
    aThe Army reported a licensee as a large business unless expressly
    identified as a small business/individual or nonprofit
    organization either in the license agreement or by the laboratory
    that entered into the agreement. Source: GAO's presentation of
    data from the agencies cited. Page 30
    GAO/RCED-99-173 Federal Licensing Statistics Appendix VI Licenses
    Granted by Six Federal Agencies by Licensee Type, Active as of
    October 1, 1998 Funding agency Type                   NIH    Armya
    Navy               Air Force           DOE                NASA
    Total Large business         438        35               32
    4              29                   17                     555
    Small business/individual    521        20               45
    28              43                   87                     744
    Nonprofit               10         8                6
    12                1                    3                    40
    Unknown                 21        30                0
    0                0                    1                    52
    Total                  990        93               83
    44              73                  108               1,391 aThe
    Army reported a licensee as a large business unless expressly
    identified as a small business/individual or nonprofit
    organization either in the license agreement or by the laboratory
    that entered into the agreement. Source: GAO's presentation of
    data from the agencies cited, Page 31
    GAO/RCED-99-173 Federal Licensing Statistics Appendix VII Licenses
    Granted by Six Federal Agencies by Licensee's Location, Fiscal
    Years 1996 Through 1998 Funding agency Location         NIH
    Army             Navy          Air Force             DOE
    NASA              Total Domestic         520       40
    44                 24               28            111
    767 Foreign           87         7               1
    1               3               0               99 Total
    607       47               45                 25               31
    111               866 Source: GAO's presentation of data from the
    agencies cited. Page 32
    GAO/RCED-99-173 Federal Licensing Statistics Appendix VIII
    Licenses Granted by Six Federal Agencies by Licensee's Location,
    Active as of October 1, 1998 Funding agency Location          NIH
    Army             Navy          Air Force             DOE
    NASA              Total Domestic          792       86
    80                 43               69            107
    1,177 Foreign           198         7               3
    1               4               1              214 Total
    990       93               83                 44               73
    108             1,391 Source: GAO's presentation of data from the
    agencies cited. Page 33
    GAO/RCED-99-173 Federal Licensing Statistics Appendix IX
    Characteristics of the Licenses Granted and the Royalties Received
    by the National Institutes of Health, Fiscal Years 1996 Through
    1998 Fiscal year Description                       1996
    1997                1998               Total Total licenses
    granted                             184                 208
    215               607 License type Exclusive
    36                  28                  23                87
    Nonexclusive                        144                 179
    191               514 Othera                                4
    1                   1                6 Licensee type Large
    business                       79                  69
    75               223 Small business/ individual
    92                 127                 127               346
    Nonprofit                            13                  12
    13                38 Licensees' location Domestic
    156                 180                 184               520
    Foreign                              28                  28
    31                87 Total royalties received
    $26,995,000           $35,692,000       $39,513,000
    $102,200,000 aIncludes agency responses "co-exclusive," "partially
    exclusive," "assignment," or "combination exclusive and
    nonexclusive." Source: GAO's presentation of data from NIH. Page
    34                                           GAO/RCED-99-173
    Federal Licensing Statistics Appendix X Characteristics of the
    Licenses Granted by the National Institutes of Health, Active as
    of October 1, 1998 Description
    Number Total active licenses
    990 License type Exclusive
    200 Nonexclusive
    769 Othera
    21 Licensee type Large business
    438 Small business/individual
    521 Nonprofit
    10 Other
    21 Licensees' location Domestic
    792 Foreign
    198 aIncludes agency responses "co-exclusive," "partially
    exclusive," "assignment," or "combination exclusive and
    nonexclusive." Source: GAO's presentation of data from NIH. Page
    35                                          GAO/RCED-99-173
    Federal Licensing Statistics Appendix XI Characteristics of the
    Licenses Granted and the Royalties Received by the Department of
    the Army, Fiscal Years 1996 Through 1998 Fiscal year Description
    1996                1997                1998                Total
    Total licenses granted                               18
    17                   12                     47 License type
    Exclusive                              8                  11
    9                    28 Nonexclusive                          10
    6                    3                    19 Licensee typea Large
    business                        11                  11
    8                    30 Small business/ individual
    2                    4                    3                     9
    Nonprofit                              5                    2
    1                     8 Licensees' location Domestic
    15                  15                   10                     40
    Foreign                                3                    2
    2                     7 Total royalties received
    $345,796             $255,496            $429,245
    $1,030,537 aThe Army reported a licensee as a large business
    unless expressly identified as a small business/individual or
    nonprofit organization either in the license agreement or by the
    laboratory that entered into the agreement. Source: GAO's
    presentation of data from the Army. Page 36
    GAO/RCED-99-173 Federal Licensing Statistics Appendix XII
    Characteristics of the Licenses Granted by the Department of the
    Army, Active as of October 1, 1998 Description
    Number Total active licenses
    93 License type Exclusive
    44 Nonexclusive
    32 Othera
    17 Licensee typeb Large business
    35 Small business/individual
    20 Nonprofit
    8 Unknown
    30 Licensees' location Domestic
    86 Foreign
    7 aIncludes agency responses "co-exclusive," "partially
    exclusive," "assignment," or "combination exclusive and
    nonexclusive." bThe Army reported licensee type if so identified
    in the license agreement or by the laboratory that entered into
    the agreement; otherwise, the type was reported as "unknown."
    Source: GAO's presentation of data from the Army. Page 37
    GAO/RCED-99-173 Federal Licensing Statistics Appendix XIII
    Characteristics of the Licenses Granted and the Royalties Received
    by the Department of the Navy, Fiscal Years 1996 Through 1998
    Description                       1996                1997
    1998              Total Total licenses granted
    16                  14                 15                45
    License type Exclusivea                            6
    6                   5               17 Nonexclusive
    10                   5                   9               24 Otherb
    0                   3                   1                4
    Licensee type Large business                        3
    4                   5               12 Small business/ individual
    12                  10                   8               30
    Nonprofit                             1                   0
    2                3 Licensees' location Domestic
    15                  14                 15                44
    Foreign                               1                   0
    0                1 Total royalties received
    $369,249            $477,970            $917,787
    $1,765,006 aIncludes agency responses "co-exclusive," "partially
    exclusive," and "assignment." bIncludes agency responses
    "combination exclusive and nonexclusive." Source: GAO's
    presentation of data from the Navy. Page 38
    GAO/RCED-99-173 Federal Licensing Statistics Appendix XIV
    Characteristics of the Licenses Granted by the Department of the
    Navy, Active as of October 1, 1998 Description
    Number Total active licensesa
    83 License type Exclusiveb
    29 Nonexclusive
    46 Otherc
    8 Licensee type Large business
    32 Small business/individual
    45 Nonprofit
    6 Licensees' location Domestic
    80 Foreign
    3 aThe Navy's license total includes only licenses from which the
    Navy received royalties in fiscal years 1996, 1997, and/or 1998,
    except for assignments. bIncludes agency responses "co-exclusive"
    and "partially exclusive." cIncludes agency responses
    "assignment," and "combination exclusive and nonexclusive."
    Source: GAO's presentation of data from the Navy. Page 39
    GAO/RCED-99-173 Federal Licensing Statistics Appendix XV
    Characteristics of the Licenses Granted and the Royalties Received
    by the Department of the Air Force, Fiscal Years 1996 Through 1998
    Fiscal year Description                       1996
    1997            1998           Total Total licenses granted
    13                     5                  7           25 License
    type Exclusive                             4                     3
    2            9 Nonexclusive                          3
    2                  5           10 Othera
    6                     0                  0            6 Licensee
    type Large business                        0                     1
    1            2 Small business/ individual
    7                     4                  5           16 Nonprofit
    0                     0                  1            1 Unknown
    6                     0                  0            6 Licensees'
    location Domestic                             12
    5                  7           24 Foreign
    1                     0                  0            1 Total
    royalties received                     $158,000
    $190,000             $212,000        $560,000 aIncludes agency
    responses "co-exclusive," "partially exclusive," "assignment," or
    "combination exclusive and nonexclusive." Source: GAO's
    presentation of data from the Air Force. Page 40
    GAO/RCED-99-173 Federal Licensing Statistics Appendix XVI
    Characteristics of the Licenses Granted by the Department of the
    Air Force, Active as of October 1, 1998 Description
    Number Total active licenses
    44 License type Exclusive
    13 Nonexclusive
    17 Othera
    14 Licensee type Large business
    4 Small business/individual
    28 Nonprofit
    12 Licensees' location Domestic
    43 Foreign
    1 aIncludes agency responses "co-exclusive," "partially
    exclusive," "assignment," or "combination exclusive and
    nonexclusive." Source: GAO's presentation of data from the Air
    Force. Page 41                                          GAO/RCED-
    99-173 Federal Licensing Statistics Appendix XVII Characteristics
    of the Licenses Granted and the Royalties Received by the
    Department of Energy, Fiscal Years 1996 Through 1998 Fiscal year
    Description                        1996                1997
    1998              Total Total licenses granted
    12                  10                       9               31
    License type Exclusive                              1
    0                      2                3 Nonexclusive
    11                  10                       7               28
    Licensee type Large business                         3
    3                      2                8 Small business/
    individual                             9                    7
    7               23 Nonprofit                              0
    0                      0                0 Licensees' location
    Domestic                               9                  10
    9               28 Total royalties received
    $111,460            $128,446             $195,269
    $435,175 Note: A majority of the licensing activities resulting
    from DOE-sponsored research is conducted by its contractor-
    operated laboratories. These were not included in this study.
    Source: GAO's presentation of data from DOE. Page 42
    GAO/RCED-99-173 Federal Licensing Statistics Appendix XVIII
    Characteristics of the Licenses Granted by the Department of
    Energy, Active as of October 1, 1998 Description
    Number Total active licenses
    73 License type Exclusive
    11 Nonexclusive
    62 Licensee type Large business
    29 Small business/individual
    43 Nonprofit
    1 Licensees' location Domestic
    69 Foreign
    4 Note: A majority of the licensing activities resulting from DOE-
    sponsored research is conducted by its contractor-operated
    laboratories. These were not included in this study. Source: GAO's
    presentation of data from DOE. Page 43
    GAO/RCED-99-173 Federal Licensing Statistics Appendix XIX
    Characteristics of the Licenses Granted and the Royalties Received
    by the National Aeronautics and Space Administration, Fiscal Years
    1996 Through 1998 Fiscal year Description                     1996
    1997             1998             Total Total licenses granted
    36                  38                37              111 License
    type Exclusive                          26                  22
    24               72 Nonexclusive                       10
    16                13               39 Licensee type Large business
    4                   4                 5               13 Small
    business/ individual                         31
    33                30               94 Nonprofit
    1                   1                 2                4
    Licensees' location Domestic                           36
    38                37              111 Foreign
    0                   0                 0                0 Total
    royalties received                   $343,545
    $526,192          $600,543       $1,470,280 Source: GAO's
    presentation of data from NASA. Page 44
    GAO/RCED-99-173 Federal Licensing Statistics Appendix XX
    Characteristics of the Licenses Granted by the National
    Aeronautics and Space Administration, Active of as October 1, 1998
    Description
    Number Total active licenses
    108 License type Exclusive
    71 Nonexclusive
    37 Licensee type Large business
    17 Small business/individual
    87 Nonprofit
    3 Unknown
    1 Licensees' location Domestic
    107 Foreign
    1 Source: GAO's presentation of data from NASA. Page 45
    GAO/RCED-99-173 Federal Licensing Statistics Appendix XXI Major
    Contacts and Staff Acknowledgements GAO Contacts        Susan
    Kladiva (202) 512-3841 John P. Hunt, Jr. (404) 679-1822 Frankie
    Fulton (404) 679-1805 Acknowledgements    In addition to those
    named above, Mark Abraham, Deborah Ortega, Paul Rhodes, and Mindi
    Weisenbloom made key contributions to this report. (141249)
    Page 46                             GAO/RCED-99-173 Federal
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