Page:United States Statutes at Large Volume 114 Part 3.djvu/645

 PUBLIC LAW 106-404—NOV. 1, 2000 114 STAT. 1743 a license to an invention which is federally owned, for which a patent application was filed before the signing of the agreement, and directly within the scope of the work under the agreement," after "under the agreement,". SEC. 4. LICENSING FEDERALLY OWNED INVENTIONS. (a) AMENDMENT.— Section 209 of title 35, United States Code, is amended to read as follows: "§ 209. Licensing federally owned inventions " (a) AUTHORITY.— A Federal agency may grant an exclusive or partially exclusive license on a federally owned invention under section 207(a)(2) only if— "(1) granting the license is a reasonable and necessary incentive to— "(A) call forth the investment capital and expenditures needed to bring the invention to practical application; or "(B) otherwise promote the invention's utilization by the public; "(2) the Federal agency finds that the public will be served by the granting of the license, as indicated by the applicant's intentions, plans, and ability to bring the invention to practical application or otherwise promote the invention's utilization by the public, and that the proposed scope of exclusivity is not greater than reasonably necessary to provide the incentive for bringing the invention to practical application, as proposed by the applicant, or otherwise to promote the invention's utilization by the public; "(3) the applicant makes a commitment to achieve practical application of the invention within a reasonable time, which time may be extended by the agency upon the applicant's request and the applicant's demonstration that the refusal of such extension would be unreasonable; "(4) granting the license will not tend to substantially lessen competition or create or maintain a violation of the Federal antitrust laws; and "(5) in the case of an invention covered by a foreign patent application or patent, the interests of the Federal Government or United States industry in foreign commerce will be enhanced. "(b) MANUFACTURE IN UNITED STATES.—^A Federal agency shall normally grant a license under section 207(a)(2) to use or sell any federally owned invention in the United States only to a licensee who agrees that any products embodying the invention or produced through the use of the invention will be manufactured substantially in the United States. "(c) SMALL BUSINESS. —First preference for the granting of any exclusive or partially exclusive licenses under section 207(a)(2) shall be given to small business firms having equal or greater likelihood as other applicants to bring the invention to practical application within a reasonable time. "(d) TERMS AND CONDITIONS.— ^Any licenses granted under section 207(a)(2) shall contain such terms and conditions as the granting agency considers appropriate, and shall include provisions— "(1) retaining a nontransferrable, irrevocable, paid-up license for any Federal agency to practice the invention or

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