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Appendix A

Government Patent Policy, 1969

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Memoran~u~ of Oc~oE~r 1"0, 1
_Over ~o y~, t~ough Ez~utive,~nd ~]~ve ~io~,. o~ p~ti~, h~ developed witch th~ EX~u'tiv~ B~nch ~e ~t~n o~ .~gh~ ~ inv~tio~ ~de under ~ntr~ ~t~ o~ pr~ti~ ~ughoutthe Gove~ent ~ view of the differ~g mi~io~ ~nd statu~ ~onsibiliti~ of ~e ~ver~l depa~men~ ¯ genci~ eng~ in ~a~h and development..~eve~hel~s, is n~ for ~ter ~ns~ncy in a~ncy p~tic~ ~ order ~ ~her the gove~en~l ~d public ~r~ in promoting the utilization o~ f~er~lly ~c~ inventions and ~ avoid difficulti~ cau~d by different appm~h~ by the a~nci~ when d~l~g wi~ the ~ame cl~ of org~n~tions in ~mp~able patent situ~o~. . From the ex~ive and ~uit~l nati~ndl ~u~io~ of gove~m~nt p~nt p~ti~, si~ificant ~on ~und h~ ~me in~ view. ~im~ a s~le pr~ption of ownemlfip do~ not provide .a sa~ fac~ b~is ~or gove~ment-wide ~ficy on th~ aH~tion of righ~ to inv~tio~ ~other ~mmon ~dund of undemanding is that the Gove~ent ~ a ~po~ibiH~to foster thefull~t exploitation of ~e inventi0~ for th~ pubic ~nefi~ . - " At~h~ for your ~id~ce is ~ sta~ment of gove~ment pa~t policy, which I h~ve approved, identifying common objectiv~ ~nd cri~ri~ ~d ~tting fo~h the minimum rights that government agenci~ should ~uim with ~rd ~ inventions made ~der their ~ts and ~nt~ ~is ~a~ment of ~licy ~ to ~t~t the public in~mst by encou~g ~e Government ~ a~m the p~cip~l righ~ ~ inventions m situatio~ where the nature of the work unde~aken or [~e Gove~ment's p~t hv~ent in the field of work favom ~ll pubhc ~s ~ ~t~g inventions. _ On ~e ~er ~nd, the policy ~z~ that the public h~t might a~ ~ ~M by a~rding ~cl~ive ~mmerc~l ~gh~ ~ the ~ntr~r in si~a~o~ ¯ wh~m ~e contour h~ an.~b]~ non-~ve~fal ~ercial ~ition and where them is ~r likeHh~ ~at the hvention wouId ~ work~ and put in~ c[~H~ u~ ~an would ~ the ~ if th~ ~nv~tion we~ ~de.more ~]y available. ~emver. ~e ~nt~ctor re~ins morn than a non-exclusive li~ thd policy wo~d ~ard a~t failure ~ p~cti~ ~e inv~tion by r~ui~ that ~e ~n~r ~e eff~ve ~ps ~ t~ y~ ¯ ~r ~e pa~t ~ ~ b~g~e ~#enfion ~ ~e ~t o~ p~ti~ application or ~ m~e it available for li~s~g on ~nable ~e Gov~m~t would a~ h~ve ~e ~ght ~ ~ on the ~ti~ o~ a li~m~ ~ othe~ ~ ~e e~t that ~e inv~on public ~ by gove~m~l m~lutio~ or ~ fulfill a health n~, ]r~ve of ~e pu~ of ~e ~n~ able ~ o~ ~1 ~ ~e light o~ ~ f~ and ~~ a~umula~. A~o~gly, t~em shoed ~ ~ntinu~g effo~ ~ monitor, ~rd, ~d e~lus~ the p~i~ of ~e a~nci~ pu~ant ~ the ~is m~o~d~ and ~e s~ent o~ ~licy ~a~ ~ publ~h~ ~ the ~~

A. The government expends large sums for the conduct of research aad dsvelopmea~ wMch r~ul~ in a oconsidsr~ble number o~ inventions and discoveries.

B. The inventions in ecientific ~md tec~ologlcM fields resulti.ng
from work performed under government contracts constitute a valuable national r~eource.

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C.. Th~use.:and practice'o~ fh~. ~yenHo~. end d~i~ should . D. The, public ~ ~ a d~amie, and ~ci~t ~nomy r~ui~ tha~' effo~. ~ ~de ~ .~~ t~ exp~itious .development. and ¯ civ~ian u~ of th~ ~entions, B0~the n~d for incentiv~ to fo~h. priva~ ~t~tiv~ to ~ end~ ~d the ~n~d ~ promo~ ~ealthy competition ~. ~dust~ m~ ~ weig~ ~ the d~ition of paint Egh~ under ~ve~ent contact. ~ere exclusive r~ ar~ ~c¯ quir~ by ~e .~ntmctor~ he ~mains ~ubj~ to the provisions of the ¯ E. ~e public ~terestis al~ served by sharing of benefi~ e~men~an~ ~a~h and development wi~h ~orei~ ~untries to a d~ consist with our intern~onal programs and with the objectiv~ of U.S. fo~i~ policy. : . F. There is ~ow~ng importance ~ttaqhing to the acquisition fo~i~ paint ~gh~ in fu~herance d~ the intere~s of U~. industry ~ndthe go~e~ent. G.. The Prudent administration of government r~arch and development calls for a ~ve~ment-wide policy on the dis~siti0n of invent~on~ made under gove~ment ~ntrac~ reflecting common p~nciples ~nd objectiv~ ~ theex~nt ~nsistent ~ith the missions o~ ~he t~ve agenci~. ~e ~licymus~ reco~ze Hm need for flexibility to ~ccommodate special situations.
POLICY

1o The .following basic policy is establishe.d for _all. go.vernment agencies with respect to inveutions or discoveries mado 1.n.the Course of. or under any contra~t 'of any government agency; subject to specific statutes governing.the disposition of patent rights of certain,government .agencies. -' (a) ~rhere ~1) a principal°purpose of the con~.ract is to create, develop or improve produc.~ processes, or methods which are intended for commercial use (or which are Otherwise intended to be made available for use) by the general public at home or abroad, or which ~vill be required for such use by governmental regulations; or (2)._a princlpalpurpo~ of the contract is for exploration into fields Which directly concern the public heal.th or public welfare; or (3) the contract is in a field of science or technology in which there has been little significant experience outside of work funded by the government, or where the governn~ent has been the principal developer of the field, and the acquisition of exclusive rights at the time of con- " tracting might' confer on the contractor a preferred or dominant
' SECTIOI~"

position i or

facility; or .. (ii) 1or .c~ordinating and directing the .work. of others,

(4) the services of the contractor are (i) for the operation of a government-owned research or production

the government shall normally acquire or rese.rve the.right to_acquire the principal or exclusive right~ through~.ut the worla_m and ~ any. inventions made in the course qfor under.the contract. In e.xceptlonai circumstances the contractor n~_y acquir~ great.~r "~g.hte .than, a ~n.o,nexclusive license .at the time. of contr~ting, w department or agency certifies that. such action will best serve the pu~blic interest. Greater rights may also be acquir~t_ b~ the .c~. ntrac, tor after the invention has. l~en identified, where the invention when made in the course o~ or under the contract is not a primary object of the contrach pro~. d the acquisitig.n .of such greater rlgh.ts is .c?nsistent with the intent o~ this Section 1 (a) ana is a necessary ~ncen~ve ~ call forth private risk capital and expense to bring the invention t ¯ the point oI practical applibation.

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' (b) Inother simafion%.wh4re~e p _urp6seo~ the cont~i~tis to ~ild ~n ~ .~~~ ~1~ ~ d~ ~fo~ti~, p~u~ p~; ~m~ ~ ~ ~e ~~ and the the ~n~r ~ ~ ~1 ~m~ .(d~o~ ~a~ ~ ~ a~ m w~ t~ ~t~ ~ ~ ~b~h~ non~v~~ ~e~ ~i~ ~e ~br ~ ~~ ~ul~ ~e p~ei. ~ ~.~d~ve. ~@~. ~ougho~.. ~e w~ld.. ~ ~d W ~y ~g.mv~ ~b~ ~ ~ ~v~t ~g ~ 1~ an ~v~bl~ no~~ve ~yMty ~ ~se.~u~out ~e w~ld for ~ve~l pu~. (~) ~ ~ ~e~l:~ o£ ~~ ~re not. ~ (b), ~ ~e de~ti~ of ~gh~ ~ ~ ~e by the ~cy a~r the inv~ti~ ~ ~n iden~ ~ a ma~e~ d~ m~ l~y pa~arly ~ ~t ~e ~tio~ of the cont~c~r ~ br~g ~ven~on m ~e ~tOf ~~ial appli~tion and ~e of s~tion l(a) he~f~ ~ t~t ~e a~ ~y p~ by i~ ~ ~e ~v~fi~ ~d ~ ~ ~ by pe~~ ~e ~n~r ~ ~ at ~e time of ~nt~ ~ea~r ~gh~ t~ ¯ non-~ve ~. ~ ~y ~ ~ ~ve~t ~H ~ui~ at 1~ a non~d~ve ~yM~ ~ ~ ~ougho~t ~e ~orld for ~v~l (d) ~ ~e situa~on ~~ ~ ~io~ l(b) ~d 1(c), ~ two of ~v~t m~ih ~~ ~ ~t ~e ~ve~t p~p~ or (e) ~e ~e pr~cipal or ~cl~ve ~p~ ~ a~ ~ ~m~t) ~gh~ ~ ~ ~v~ion ~ ~ ~e ~n~r, ~e shoed ~ " ~ p~de ~t~ ~ affable ~~ wh~ ~u~ by the ~ve~ on ~e ~e~i~ ~~t ~ ~~de o~ ~~ m ~ made of ~V~fio~ ~e ~d~ ~ve~t ~n~. ' m~t) ~gh~ ~ ~ ~v~on ~ ~ ~ ~~r,'~ ~

~r~ ~ H~ or ~ ~ ~ ~k~ ~ve ~ ~
ci~~ or ~ ~ ~ why he ~d ~. ~e n~~ve ~ ~ ~' .

(g) ~ ~ p~ ~ ~ve (~pt ~ a~ ~

n~, or ~or o~ pub~ 9~~ ~ ~ ~ " (h) ~ ~ ~~t ~ ~ ~ p~l rlgh~ ~y ~e and. ~ ~e p~ci~ ~ ~ve zo~ righ~ ~ve~l pu~ ~d ~ ~al~ o~ ~y ~o~i~ ~v~t pur~ ~snt ~ any ~g or ~tu~ t~ty or s~t ~ ~e S~. ~. ~v~t-o~ ps~ ~sH ~ ~e ~vsilsble ~d ~olo~l ~v~ ~v~~y b~ught m~ ~g in ~e ~o~o~cial ~ve~ment publicatio~ or o~e~ A4

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.. THE PR~.SIDENT

- repo~' conce~rnin~.~t, he~ei~t~v'eness of.~;tt~s ~cy, ~u~g r~mm~o~ for ~on~or, m~on ~ n~ ~ ~ght of the

(a). devel~p.~by mutual consul~ti~n~ and ~rd~atlon with the ¯ ag~cies ~on. ~de~ .for ~ ~pIemen~ion o~ t~s policy, ~ ~ ~i~ o~ inv~tions and paints in which the ~ove~men~ ~ (b) ~ura~ ~e a~u~on of data by government a~nci~ on ~e ~p~tion of paint ~gh~ ~.~ventions ~ulting ~om ~erMly~a~ ~a~ ~d development and on the u~ and pr~ti~ o~ sach inven~ions~ ~ ~e ~ b~is for ~licy review and development; (c) .~ ~~d~io~ for adv~cing the" u~ and exploi~tion of ~ve~ent-o~ domestic ~d fomi~ pa~n~. S~. ~ Deflate. As ~ m thin ~hcy s~ment, the s~ated ~ ~ s~lar and plural ~ defin~ ~ follows for the purp~ " (a) ~ve~t ~ncy--~cludes any Executive depa~men~, independer ~~ion~ ~ard~ o~ agency~ a~istration~ authority, or other.gove~ent ,~blis~ent o~.. the Ex~utive Br~ch of the Gove~ent of ~e Uni~ Sta~ of ~eri~. (b) U~vention" or ~vention or ~~ve~'~clud~ any a~ m~e~.m~nu~acm~ d~i~ or comp~ition, of mat~r~ or an~ ne~ and ~ ~pmvement the~f~ or ~y variety of p]ant~ which ~s or may' ~ pa~le ~der the Patent Laws of the U~t~ Sta~ of (c) Cont~.a~r--m~ns any ~di~dual~ pa~nemhip~ public or pri-. v~ ~tion~ ~iation~ ~stituti6n~ or other entity which ~s a (d) ~n~m~ ~y acthal or. propo~ ~n~, ~men~ ~ or ~r a~n~ or su~nt~t en~ '~ w~ or for ~e ~fit o~ ~e ~v~t whe~ a'~ of ~e ~nt~ is the ~ndu~ of ~~~, develO~~ or ~arch work. ' . (e) ~e'~wh~ u~ ~ ~]atlon ~ any in~tion or ~ve~ ~ ~e ~n~ or ~t ~tu~ ~uction ~ pr~ti~ of such ~v~tlon ~ ~e ~ of o~ ~d~r the ~n~t. . (f) ~ve~en~l p~m~ns ~e ~ght o~ ~e Gov~ent of ~e U~i~ S~ (~clud~g any a~ncy their, ~, or dom~tic mu~cipa] ~~t)' ~ p~ and have p~ (m~e or have m~ ~ or .~ve ~ ~ld. or have ~ld) ~ughout the world by or on ~f of ~e Gove~en~ of ~e Uni~ S~. (g) '~o ~e ~t of p~l appli~on'~m~ns ~'m~ufactu~ ~ ~ ~ of a ~m~ion or p~ue~ ~ pmc~ in ~e ~ of a p~ or ~ o~m~ ~ ~ ~'of ~ m~h~e and ~der ~ch ~nditio~ ~ ~ ~b~ ~t ~e ~v~on is ~g work~ and that i~ ~nefi~ a~ ~ably ~ble ~ ~e public.

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Appendix B

Government Patent Policy, 1971

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Presidential Documents
Title 3--The President
MEMORANDUM OF AUGUST 23, 1971

Government Patent Policy
Memorondum for Heads of ExeCutive Departments and Agencies "FIIE XtVHrrE HOUSE, IVashington, August 23, 1971. On October 10, 1963, President Kennedy forwarded to the Heads of Executive Departments and Agencies a Memorandum and Statement o[ Govermnent Patent Policy for flmlr guidance h~ determhfing the d~sposilion of fights to hwenfions made under Government-sponsored gran~ and contracts. On the bas~s of the knowledge and experience then available, tlds Statement fi~t eslablM~ed Government-wide objectives and criteria, witlfin existing leglslatlve constnfints, for tim allocation of fights to inventions between the Government and its contractor. It was recognized that adtual experience ulldcr the Policy could indicate the need for revision or modification. Accordingly, a Patent Advisory Panel was established under the Federal Council for Science and Technology for the purpose of assisting the agencies in implementing the Policy, acquiring data on the agencies' operations under the Policy, and making reconmlendatlons regarding the utilization of Govermncntowned patents. In December 1965, tile Federal Council established the Committee on Governmet~.t Patcnt Policy to a.,sess how this Policy was working in practice, and to acquire and analyze additlomd information that could contribute to tile reaffirmation or modification of tim Policy. The efforts of both tile Conlmittcc and tile Panel have provided incmtscd knowlcdgo of the effects of Govcrn,ncnt patent policy on the public interest. More specifically, the studies and experience o\'er tile past 7 .vcm.'s have indicated that:

(a) A single prcsunlptlon of ownership of patent rights to Govcrument-sponsored ~nventions either in the Government or in ils contractors not a satMactory bas~s for Governnlent patent policy, and that a flexihle, Government-wkle policy best serves the public ]mere.st;
(h) The commercial utilization of Governnlcnt-sponsorcd inventions, the partMpatlon of industry in Government research and dcvclopmcnt programs, and comnlcrcial competition call 1)c influenced by the followh~g factors: the mimion of tile contracting agency; tile purpose and nature of the contract; tile commercial applicability and nlarket potential of the invention; tile extent to which the invention is developed by tixc contracting agency; tile promotional activities of the contracting agency; the commercial orientation of the contractor and the extent of his privately
FEDERAL REGISTER, VOL. 36, NO. 166~THURSDAY, AUGUST 26, 1971

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1~88

THE PRESIDENT

financed research in the related tcclmology; and the size, nature and research orientation of the pertinent industry; (c) In general, the above factors are reflected in the b~ic principles of the 1 !)63 Prc's'idential Policy Statement. Based on the rcsuhs of the studies and experience gaiued under the 1963 Policy Statement certain inaprovcnlents in the Policy have bccn recommended which would provide (1) agency heads with additional authority to-permit contractors to obtain greater rights to inventions where necc~ary to achieve utilization or where equitahle circumstances wonkl justify such allocation o[ rights, (.9) additional guidance to the agcncics in promoting the utilization of Government-sponsored im'cntions: (3) clarification of the rights of States and municipal governments in inventions in which the Federal Government acquires a license, and (4) a more definitive data base for evaluating the administration and effectiveness of the Policy and the feasibility ,and desirability of further refinement or modification of the Policy. I have approved the above recommendations and have attached a revised Statement of Government Patent Policy for your guidance. As with the 1963 Policy Statement, the Federal Council shall make a continuing effort to record, monitor and evaluate the effects o~ this Policy Statement. A Conunlttce on Government Patent Policy, operating under the aegis of the Federal Council for Science and Technology, shall assist the Federal Council in these matters. This memorandum and statement of policy shall be published in the
FEDERAL REGISTER.

FEDERAL REGISTER, VOL. 36, NO. 166~THURSDAY, AUGUST 26, 1971

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THE PRESIDENT

Statement of Government Patent Policy
B,\sm (~ONSIDERATIONS

A. The Government expends large sums for the conduct of research and development which results in a considerahle number of in\'entbms and discoveries. B. The im'cutlons in scientific and tcchnologlc,'d ficlds rcsuhing from work ~rformcd uuder Government contracts consthute ;t yaluable national resource. C. The use and practice of these hwcntions and discoveries should stimulate inventors, meet the needs of the Government, rccognlzc the cquitics of the contractor, and serve the public interest. D. The public interest in a d)uaamlc and efficient economy rcqulrcs that cffons be nmdc to encourage the cxpcditious (Icvclopmcnt and ci\,iliau use of these ilwcntlons, Both thc need for inccnth'cs to draw forth private initiatives to this end, and the need to promote healthy competition in industry must be weighed in the disposition of patent righm under Government contracts. Where exduslve rights are acquired by dm contractor, he remains subject to the provisions of the antitrust laws. E. The public interest is also served by sharing of benefits of Government-financed research and development with foreign countries to a degree condstcnt with our international programs and with the ol~jcctlvcs of U.S. foreign policy. F. There is growing importance attaching to the acquisition of foreign patent rights in fttrtherance of the interests of U.S. industry and the Government.

G. The prudent administration of Government research and development calls for a Governmcnt-wlde policy on the dlspos~tlon of hwcntions made under Government contracts reflecting common principles and objectives, to the extent consistent with the missions of the respective agenclcs. The policy must recognize the need for flexibility to a.'.commodate special situations. Ponm~
SI'.;CTIO.~ 1. The following basic policy is established for all Govemme,~t agencies with respect to inventions or discoverlcs made in the course of or undcr any contract of any Government~agency, subject to specific statutes go\'crning the disposition of patent rights of certain Govcrmncnt agencies. (a) Where

( I ) a principal purpose of the contract is to create, devdop or huprove products, processes, or methods wldch are intended for commercial use (or which are otherwise intended to be made available for use) by the general' public at home or abroad, or which will be required for such use by governmental regulations; or (2) a principal purpose of the contract is for exploration into fields which directly concern the public health, public safety, or public welfare; or (3) the coutract is in a field of sdence or tcchnologT in which there has been little significant experience outside of work funded by the Government, or where the Government has been the principal developer of the field, and the acquisition of exclusive rights at the time of contracth~g might confer on the contractor a preferred or donain,'mt position; or
No. 166--P1:. ~2 FEDERAL REGISTER, VOL. 36# NO. 166~l'HURSOAY, AUGUST 26, 1971

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(4) the services of the contractor are (i) for the operation of a G0vernment-owned research or production facility; or (it) for coordinating and directing the work of others, the Government shall normally acquire or reserve the right to acquire the principal or exclusive rights throughout the world iu and to any inventions made in the course of or under the contract. In exceptional circumstances the contractor may acquire grcatcr'rlghts than a nonexcluslve license at the time of contracting where the head of the department or agency certifies" that such action will best serve the public interest. Greater rights may a~so be acquired by the contractor after the invention has been identified where the head of the department or age!lc.v determines that the acquisition of such greater rights is consistent with the intent of this Section 1 (a) and is either a necessary inccn~.i\'e to call forth private risk capital and expense to bring the invention to the point of practical application or that the Government's contrihution to the invention is small compared to that of the contractor. Where z, aa identified invention made in the course of or under the contract is not a primary object of the contract, greater rights may also be acquired by the contractor under the criteria of Section 1 (c). (b) In other situations, where the purpose of the contract is to build upon existing knowledge or technology, to develop information, products, processes, or methods for use by the Gov.ernment, and the work called for by the contract is in a field of technology in which the contractor has acqttired technical competence (demonstrated by factors such as know-how, experience, and patent position) directly related to an area in which the contractor has an established nongovernmental commerciM position, the contractor shall normally acquire the principal or exclusive Hghts throughont the world in and to any resulting inventions.

(c) Where the commercial intcrests of the contractor arc not sufficiently established to be covered by the criteria specified ii~ Section 1 (b) abo\'c, the dctcrntination of rights shall be made by the agency after the invention has been identified, in a manner deemed most likely to serve the public interest as expressed in this policy statement, taking partlculady into account tile intentions of the contractor to bring the invention . lo the point of commercial application and the guidelines of Section 1 (a) hereof, provided that the agency may pre..~rlbe by regulation special situations where the public h~tcrcst in the availabilityof the inventions would best be served by pcrmlttlilg the contractor to acquire at. the time of contracting greater rights than a noncx~lusivc license. (d) In the situations specified in Sections 1 (b) and 1 (c), when two or more potential contractors are judged to have presented proposals of equivalent merit, willingnem to grant the Government principal or exclusive rights in resulting inventions will be an additional factor in the evaluation of the proposals. (e) Where the principal or exclusive rights in an invention remain in the contractor, lie should agree to provide written reports at rc,xsonable intcr~'als, when requested by the Government, on the commercial use that is being made or is intended to be made of inventions made under Government contracts.
FEDERAL REGISTER, VOL. 36, NO. 166~THURSDAY, AUGUST 26, 1971

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16891

(f) \Vhere the principal or exclusive rights in an invention remain in the contractor, unless the contractor, his licertsee, or his ,xs.~i~we has taken effec ti\'e steps within three years after a patent imues on the invention to bring the invention to the point of practical application or has made the invention available for licensing royalty-free or on terms that are reasonM~le in the circumstances, or can show cause why he should retain the prlnclp:fl or exclusive rights for a further period of time, the Government shrill have the right to require the granting of a nonexcluslve or exclusive license to a responsible applicant (s) on terms that are ret~sonable nnder the circumstances. (g) Where the principal or exclusive rights to an invention are acquired l)y the contractor, the Government shall have the right to require the granting of a nonexcluslve or e.xclusiv~ license to a rcsponsil applicant(s) on terms that are reasonable in the circumstances (i) to the extent that the invention is required for public use by governmental rcgulatlon.% or (ii) a.s may be necessary to fulfill health or safety needs. or (iii) for other public purposes stipulated in the contract. (h) Whenever the principal or exclusive rights in an invention remain in the contractor, the Government shall normally acquire, in addition to the rights set forth in Section's 1 (e), 1 (f), and 1 (g), ( 1 ) at least a nonexcluslve, nontransferable, pald-up license to make, use, and sell the invention throughout the world by or ort behalf of the Government of the United States (including any Government agency) and States and domestic munlcipM governments, unless the agency head determines that it would not be in the public interest to acquire the license for the States and domestic municipal governments; and (2) the right to sublicense any foreign government pursuant to any existing or future treaty or agreement if the agency head determines it would be in the national interest to acquire this right; and (3) the prin~'ipal orexclusive rights to the invention in any country in which the contractor does not elect to secure a patent. (i) Whenever the principal or exclusive rights in an invention are acquired by the Government, there may be rese~,'ed to the contractor a revocable or irrevocable noncxclusive royalty-free license for the practice of the invention throughout the world; an agency may reserve the right to revoke such license so that it might grant an exclusive license when it determines that some degree of exclusivity may be ncce~ary to encourage further development and commercialization of the invention. Where the Government has a right to acquire the principal or exclusive rights to an invention and does not elect to secure a patent in a foreign country, the Govenmlent may permit the contractor to acquire such rights in any foreign country in which he elects to secure a patent, subject to the Government's rights set forth in Section 1 (h). SEe. 2. Under regulations prescribed by the Administrator of General Sere'ices, Government-owned patents shall be nlade availal)le and the technological advances covered thereby brought into being in the shortest time possible through dedication or licensing, either exclusive or nonexclusive, and shall be listed in olliclal Government puhlications or otherwise.

FEDERAL REGISTER~ VOL. 36~ NO. 166--THURSDAY, AUGUST 26, 1971

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16892

THE PRESIDENT

Sac. 3. The Federal Council for Science and Technology in consuhatlon with the Department of Jnstlce shall prepare at least annually a report concerning the effcctivene-vs of this policy, including recommendatlons for revision or modification as nccassary in light of the practices and determinations o[ the agencies in the disposition of patent right~ under their contracts. The Federal Council for Science and Technology shall coutinue to
(a) dcvclop b)" nmtual consuhation and coordination with the agencies COlnmon guidelines for the implementation of this policy, consistcnt with existing statutes, and to provide overall guidanceas to disposition of inventions and patents in which the Government has any right or interest; and (b) acquire data from the Government agencies on the disposition of patent rights to inventions resulting from federally financed research and development and on the use and practice of such in\'entions to serve as bases for policy review and development; and (c) m~tke recommendations for advancing the use and exploitation of Government-owned domestic and foreign patents. Each agency shall record the b~is for its actions with respect to iuveutions and appropriate contracts under this statement. See. 4. Definitions: As used in this policy statement, the stated terms in singular and plural are defined as follows for the purposes hereof: (a) Government agency~includes any executive department, independent commission, bo,-rrd, office, agency, admin~tration, authority, Government corporation, or other Government establishment of the executive branch of the Government of the United States .of Amerlca. (b) States--means the States of the United States, the District of Columbia, Puerto Rico, the Virgin Islands, American Samoa, Guam and the Trust Territory of the Pacific Islands. (c) Invention, or Invention or dlscovery~includes any art, machine, nmnufacture, design, or composition of matter, or any new and nseful improvement thereof, or any varlet}, of plant, which is or may be patentable under the Patent Laws of the United States of Ainerica or any foreign country. (d) Contractor--mcaus any lndlvidual, partnershlp, publlc or prlvatc corporation, association, institution, or other entity which is a party to the contract. (e) Contract~means any actu~d or proposed contract, agreement, grant, or other arrangement, or subcontract .e.ntcred into with or for the benefit of the Government where a purpose of the contract is the conduct of experhncntal, developmental, or research work. (f) Made--when used in relation to any invention or discovery means the conception or first actual reduction to practice of such in\'cution in the course of or under the contract. (g) To the point o[ practical applicatlon--means to manufacture in the case of a composition or product, to practice in the c~se of a procc.% or to operate in the case of a machine and under such conditions as to establish that the invention is belng worked and th,~t its benefits are rcasonalfl)' acce.~sible to the publ!c. [FK Doe.71-I 2623 Filed 8-25-71 ; I 0: 4,1 am]
FEDERAL REGISTER, VOt. 36, NO, 166--THURSDAY, AUGUST 26, 1971

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