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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2196 Enrolled Bill (ENR)]

        H.R.2196

                       One Hundred Fourth Congress

                                 of the

                        United States of America

                          AT THE SECOND SESSION

         Begun and held at the City of Washington on Wednesday,
   the third day of January, one thousand nine hundred and ninety-six

                                 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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Technology Transfer and 
Advancement Act of 1995''.

SEC. 2. 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 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. 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.
    ``(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. 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 
    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'';
            (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) 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) 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) 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. 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.

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 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) 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 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 
    assessment activities, with the goal of eliminating unnecessary 
    duplication and complexity in the development and promulgation of 
    conformity assessment requirements and measures.''.
    (c) 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) 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 United States 
industry, and that all funds appropriated for such program should be 
spent in support of the goals of the program.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
```