[104th Congress Public Law 113]
[From the U.S. Government Printing Office]
<DOC>
[DOCID: f:publ113.104]
[[Page 110 STAT. 775]]
Public Law 104-113
104th Congress
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. <<NOTE: Mar. 7, 1996 - [H.R.
2196]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: National
Technology Transfer and Advancement Act of 1995.>>
SECTION 1. <<NOTE: 15 USC 3701 note.>> SHORT TITLE.
This Act may be cited as the ``National Technology Transfer and
Advancement Act of 1995''.
SEC. 2. <<NOTE: 15 USC 3701 note.>> 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
[[Page 110 STAT. 776]]
agree to grant in advance, to a collaborating party patent licenses or
assignments, or options thereto, in any invention made in whole or in
part by a laboratory employee under the agreement, for reasonable
compensation when appropriate. The laboratory shall ensure, through such
agreement, that the collaborating party has the option to choose an
exclusive license for a pre-negotiated field of use for any such
invention under the agreement or, if there is more than one
collaborating party, that the collaborating parties are offered the
option to hold licensing rights that collectively encompass the rights
that would be held under such an exclusive license by one party. In
consideration for the Government's contribution under the agreement,
grants under this paragraph shall be subject to the following explicit
conditions:
``(A) A nonexclusive, nontransferable, irrevocable, paid-up
license from the collaborating party to the laboratory to
practice the invention or have the invention practiced
throughout the world by or on behalf of the
Government. <<NOTE: Confidential information.>> In the exercise
of such license, the Government shall not publicly disclose
trade secrets or commercial or financial information that is
privileged or confidential within the meaning of section
552(b)(4) of title 5, United States Code, or which would be
considered as such if it had been obtained from a non-Federal
party.
``(B) If a laboratory assigns title or grants an exclusive
license to such an invention, the Government shall retain the
right--
``(i) to require the collaborating party to grant to
a responsible applicant a nonexclusive, partially
exclusive, or exclusive license to use the invention in
the applicant's licensed field of use, on terms that are
reasonable under the circumstances; or
``(ii) if the collaborating party fails to grant
such a license, to grant the license itself.
``(C) The Government may exercise its right retained under
subparagraph (B) only in exceptional circumstances and only if
the Government determines that--
``(i) the action is necessary to meet health or
safety needs that are not reasonably satisfied by the
collaborating party;
``(ii) the action is necessary to meet requirements
for public use specified by Federal regulations, and
such requirements are not reasonably satisfied by the
collaborating party; or
``(iii) the collaborating party has failed to comply
with an agreement containing provisions described in
subsection (c)(4)(B).
This determination is subject to administrative appeal and
judicial review under section 203(2) of title 35, United States
Code.
``(2) Under agreements entered into pursuant to subsection (a)(1),
the laboratory shall ensure that a collaborating party may retain title
to any invention made solely by its employee in exchange for normally
granting the Government a nonexclusive, nontransferable, irrevocable,
paid-up license to practice the invention or have the invention
practiced throughout the world by or on behalf of the Government for
research or other Government purposes.
[[Page 110 STAT. 777]]
``(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 <<NOTE: Royalties.>> . 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
[[Page 110 STAT. 778]]
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'';
[[Page 110 STAT. 779]]
(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) <<NOTE: 15 USC 278.>> 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) <<NOTE: 15 USC 278e.>> 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) <<NOTE: 15 USC 278g-2.>> in section 19--
(A) by inserting ``, subject to the availability of
appropriations,'' after ``post-doctoral fellowship
program''; and
(B) by striking ``nor more than forty'' and
inserting in lieu thereof ``nor more than 60''.
SEC. 9. RESEARCH EQUIPMENT.
Section 11(i) of the Stevenson-Wydler Technology Innovation Act of
1980 (15 U.S.C. 3710(i)) is amended by inserting ``loan, lease, or''
before ``give''.
SEC. 10 <<NOTE: 15 USC 275 note.>> . 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.
[[Page 110 STAT. 780]]
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
[[Page 110 STAT. 781]]
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) <<NOTE: Reports. Regulations.>> 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
[[Page 110 STAT. 782]]
fasteners from two lots shall be conspicuously marked with the lot
identification numbers of both lots.
``(f) Subsequent Purchaser.--If a person who purchases fasteners for
any purpose so requests either prior to the sale or at the time of sale,
the seller shall conspicuously mark the container of the fasteners with
the lot number from which such fasteners were taken.''.
(g) Section 9 Amendment.--Section 9 of the Fastener Quality Act (15
U.S.C. 5408) is amended by adding at the end the following new
subsection:
``(d) Enforcement.--The Secretary may designate officers or
employees of the Department of Commerce to conduct investigations
pursuant to this Act. In conducting such investigations, those officers
or employees may, to the extent necessary or appropriate to the
enforcement of this Act, exercise such authorities as are conferred upon
them by other laws of the United States, subject to policies and
procedures approved by the Attorney General.''.
(h) Section 10 Amendments.--Section 10 of the Fastener Quality Act
(15 U.S.C. 5409) is amended--
(1) in subsections (a) and (b), by striking ``10 years'' and
inserting in lieu thereof ``5 years''; and
(2) in subsection (b), by striking ``any subsequent'' and
inserting in lieu thereof ``the subsequent''.
(i) Section 13 Amendment.--Section 13 of the Fastener Quality Act
(15 U.S.C. 5412) is amended by striking ``within 180 days after the date
of enactment of this Act''.
(j) Section 14 Repeal.--Section 14 of the Fastener Quality Act (15
U.S.C. 5413) is repealed.
SEC. 12. STANDARDS CONFORMITY.
(a) Use of Standards.--Section 2(b) of the National Institute of
Standards and Technology Act (15 U.S.C. 272(b)) is amended--
(1) in paragraph (2), by striking ``, including comparing
standards'' and all that follows through ``Federal Government'';
(2) by redesignating paragraphs (3) through (11) as
paragraphs (4) through (12), respectively; and
(3) by inserting after paragraph (2) the following new
paragraph:
``(3) to compare standards used in scientific
investigations, engineering, manufacturing, commerce, industry,
and educational institutions with the standards adopted or
recognized by the Federal Government and to coordinate the use
by Federal agencies of private sector standards, emphasizing
where possible the use of standards developed by private,
consensus organizations;''.
(b) Conformity Assessment Activities.--Section 2(b) of the National
Institute of Standards and Technology Act (15 U.S.C. 272(b)) is
amended--
(1) by striking ``and'' at the end of paragraph (11), as so
redesignated by subsection (a)(2) of this section;
(2) by striking the period at the end of paragraph (12), as
so redesignated by subsection (a)(2) of this section, and
inserting in lieu thereof ``; and''; and
(3) by adding at the end the following new paragraph:
``(13) to coordinate Federal, State, and local technical
standards activities and conformity assessment activities, with
private sector technical standards activities and conformity
assess
[[Page 110 STAT. 783]]
ment activities, with the goal of eliminating unnecessary
duplication and complexity in the development and promulgation
of conformity assessment requirements and measures.''.
(c) <<NOTE: 15 USC 272 note.>> Transmittal of Plan to Congress.--
The National Institute of Standards and Technology shall, within 90 days
after the date of enactment of this Act, transmit to the Congress a plan
for implementing the amendments made by this section.
(d) <<NOTE: 15 USC 272 note.>> Utilization of Consensus Technical
Standards by Federal Agencies; Reports.--
(1) In general.--Except as provided in paragraph (3) of this
subsection, all Federal agencies and departments shall use
technical standards that are developed or adopted by voluntary
consensus standards bodies, using such technical standards as a
means to carry out policy objectives or activities determined by
the agencies and departments.
(2) Consultation; participation.--In carrying out paragraph
(1) of this subsection, Federal agencies and departments shall
consult with voluntary, private sector, consensus standards
bodies and shall, when such participation is in the public
interest and is compatible with agency and departmental
missions, authorities, priorities, and budget resources,
participate with such bodies in the development of technical
standards.
(3) Exception.--If compliance with paragraph (1) of this
subsection is inconsistent with applicable law or otherwise
impractical, a Federal agency or department may elect to use
technical standards that are not developed or adopted by
voluntary consensus standards bodies if the head of each such
agency or department transmits to the Office of Management and
Budget an explanation of the reasons for using such standards.
Each year, beginning with fiscal year 1997, the Office of
Management and Budget shall transmit to Congress and its
committees a report summarizing all explanations received in the
preceding year under this paragraph.
(4) Definition of technical standards.--As used in this
subsection, the term ``technical standards'' means performance-
based or design-specific technical specifications and related
management systems practices.
SEC. 13. SENSE OF CONGRESS.
It is the sense of the Congress that the Malcolm Baldrige National
Quality Award program offers substantial benefits to
[[Page 110 STAT. 784]]
United States industry, and that all funds appropriated for such program
should be spent in support of the goals of the program.
Approved March 7, 1996.
LEGISLATIVE HISTORY--H.R. 2196:
---------------------------------------------------------------------------
HOUSE REPORTS: No. 104-390 (Comm. on Science).
CONGRESSIONAL RECORD:
Vol. 141 (1995):
Dec. 12, considered and passed
House.
Vol. 142 (1996):
Feb. 7, considered and passed
Senate, amended.
Feb. 27, House concurred in Senate
amendments.
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