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.·'t ~ $"'~ -.. 

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84nr CONGRESS 

lsT SEssw:r.-. H .. R~"639 . :_ .. (._; 

IN THE HOUSE_ OF REPRESENTATIVES ,-, 

{.; 

JANUARY 5, 1955 • • < • • • • ' - ~ ' • • • ~ 

1\fr: GELLER introduced the following bill; wlμch vrns referred to the Committe~ on the J ud,i.ci!}ry ,_ l 

A BILL 

'l1o authorize the establishment of an Inventionsr A wards Board • • ~ . ' . • • \ • I ·' • I ' 

within the Dep~rtment of Defense, and for other purposes. "" . ., rr ·- - ~' . - '7 ~ t . ' ~ - !.. - .: 

Be it enacted by the Senate and !louse of Representa- . -. ,,;·· :- 7:· . . . . . -__ - ,-~ : -:··,··'· -~ .... 'i ,~~:- ·:. ~~ 

2 tives of the United States of Ame1'ica in Congress assembled, 

1 

3 · T~~t·_ t~is' Xct may be ~it~~ as tl~e "In~rentio~~ 1 A~~rds Act . . ,., ;· ' - •••• ' : < ._,. •• -.; t , 1"' 

4 of 1955". 

5 DECLARATION OF POLICY 

' . ! . \ \~: 

- - ~ .. :·J t - . - -, ·' • -~- :- ,..~.· • ·-· :;·~ ''. \~-- : • '..\ ~-·~-~ 

6 SEC. 2. It is the purpose of this Act to foster inventio~ • ' • • ,. - ... ' • l ... ' - .• ,, 

•·: I ' 

7 for national defense through the establishment within the De- -- I 'JO\ • : ., 1· .• ,. · ~ ,".·.-:.I ; •:·• ' ·:" "',. ~·:.>·\. ::~;~~ 

8 partment 'of Defense of an Inventions A wards Board which "')l .{1 - ·- • - ' ~-.! ·.I i' • ·~ .- .,· ~'. '' '1,t' ~-,-·.r,-•· ."'.') .'.:~:·~ 

9 shall he authorized to recommend to the Secretary the making 

,.:' . · ,. - . ·_ .- ·. - ~ -. , . ·:-- -~ - ~ --,.-~ ·.:· 'iL'·Y.~~ S~ ;.t'~~ 

10 of such awards, to be known as N ationarDefense Awards, as 

I 

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REF ID:A4161580 

2 

1. it shall consider just for meritorious inventions contributing 

2 to the national defense. 

3 DEFINITIONS 

4 SEC. 3. As used in this Act5 ·(a) The term "invention" means any art, machine, 

6 manufacture, comp_ositiQn_of_m_a:tter, ,or any new and useful 

7 improvement thereof which is useful, or susceptible of use, 

s for' af>I>licati~n: ·in the ·national 'defense of the united states, 

9 a11:d which is not -~ubject to the provisions of the Atomic 

10 Energy Act· of i 946, wheth~r o~ not such invention is 

11 patented, unpatented, or· patentable. 

12 (b) The term '~invel).tor" means any person who hil$: 

13 made an invention. 

·14 : ( c). The term "pers.on" shall ~elude any nat~1ral person, 

15 and his heirs. 

16 ( d) · The term "the Department" shall mean the De17 :Rartment of Defense, and the term "Secretary" shall mean ... 

18 the Secretary of Defense.· 

19 ( e) The term "defense agency" means the Department, . ' . -

20 or apy _ot~er d_ep~-rt~ent, agency, or in_dependent establish- -· ~ ' ., - • ' r I 

21 . ~ent_ in. the execu~ive branch of the_- Government (except the 

22 _ At_omi~ Energy Co~ission) , _and any wholly owned Gov-

., ;J '' 'i 

23 ernment corporation, designated by the President as a defense • 1, ' I 

. ' 

24 agency for the purp~ses of this Act. '1: 

.. · 
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3 

1 (f) The term :"Board" means the- Inventions -Awards 

2 - Board ·established pursuant to section 5 of this Act. 

3 (g) The term "award" means a National Defense 

4 A \va.rcl authorized by section 4 of this Act. 

5 . NATION AL DEFENSE AW ARDS 

6 SEC. 4. \Vhenever any inventor -has -disclosed to any 

7 defense agency any invention which. contributes or has con8 tributed substantially to the national defense, and any such 

~ '·,agency in consequence of such .disclosure has used· such iri: 

10 verition, the S~cretary, _upon the tecommendation of' th'.e ~ 

11 . Board; may rriake a National Defense Award to such inven:· 

. 12 · tor in such ~\mount; and' subject to such terms· and conditions, r. 

13 as the Board shall determine in confom1ity with ·the' pro.:.·· 

14 visions of this Act to be ]ust compensation for such inventioh' 

15 'or the use thereof. ., ' ,_ .• l 

16 .. INVENTIONS A W.AIWS BOARD (." .. 

• ., 1-

17 SEC.· 5 .. (a) The Secretary is authorized to .establish, 

18 ·within tlie Department an -inventions' A wards Board whicl{ 

19 'shall be "composed" of not more. than . fifteen". me:n:ibers ' a~J 

20 poii1tcd by the Secretary, ·for sticll.term or terms' as· he· ma9< 

21 specify, from persons in civil life wh<r are ·eininenf in . on~~: 

22 ·or more of the following· fields of a.ctivity: inyention, sciencJ:~('. 

23 research, development,· an'd ·patent· law.: The' Board shall~~ 

24 -meet· ·at sucli-tiliies as· the· Secretary:ri:iay 'sp~cify to considei::: 

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REF ID:A4161580 

4 

1 applications made pursuant to section 6 of this· Act for 

2 awards.· Five· members shall constitute a quonun .of the 

-3~ ···Board·. 

4 (b) Each member· shall receive compensation at the 

5 rate of $7 5 ·for each day of his attendance at meetings of the 

f~ ;Bo·ai:d; · and shall be. teimbur~ed for all travel expenses ac-

.7_ ·, tuaUy.incui:red by hini in the ·performance of his duties as 

,~,·--a mem her of the Board.' , . " . .l 

~,~ . > · ; (c) .. ·.The Board shaU_perform the duties required of it 

Ht: by. section· .6 of this Act .. · r:rhe. Secretary. shall provide the· 

11~. Boa.i·d ·with 'such personnel aucl facilities as. he may determine 

1~ : :to'' be·· required·_· by-.. the, .Board for the performance of its 

13r ··functions. · ·" : · · · : '\. • • .... • I ' ~ I•; 

~~ ::·;, · :· ''(cl) . The· Board may prtnn.ulgate .such 'rules and regu> 

15 

lations, not inconsistent with this Act,'- as may be required 

16 for the performance: of its. duties hereunder. 

1_~ (:· kPPI,J0A'l_'IQNS. ·FOR AWAJWS AND PROCEEDINGS THEREON 

,~, .. ~·-- :· ~-SEC. 6: (:a)· Any inventor may file with the Secretary 

1.~ s an~ applica,tion for an awa.rd under section 4 of this Act. Such 

2£:;· application may .'be filed upon. information and belief, and· 

2r.I) Sball ·COlltain a: Sta'.temerit COnCerning-. 

2~;"'/r;; "·:·: . (. ,; . (1); ·the nature of ·su:ch invention; . 

2_~" ,_r:~ ''i!o': ;' c2r the.- ownership thereof.; 

2.~:~>~,;~!-'./1 (_~: -{3.)" tlrn·tim~ and mamier ·of its'.dfaclosure to .any. 

25 defense agency; 
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REF ID:A4161580 

1 ·:~: · ~~::·. '(4}- the:nature arid extent of its use by any defense 

2 agency; 

-3.r: ·J<! '· . (5) the ·utility ·'of such invention- ·to 'the Unit~d 

. '.4-'.:. ,;,/ ··States·-~m'the interest"of national defense;' 

· 5~ ~ · ~ ·.~-,. ~ :. °(6) the: nature a~d ~extent of· the compensation 

6-'. : "';received by such i'nventor from .the: United. States undkr 

·.7 "'·': _: · any other pro'vision ·of. lawdor o'i· on· ~ccount of the de8 velopment or use of such. invention; ' '' 

._ 9 ... :. c.. . '.( 7-)- ·-th~- nature and :ex.tent 'of. the compensation fbr 

10:; .!. ,;>W-hich"application. is~·rriade pursuant to thi~ ·Act; ant 

.11 .... ,:-; ,_,_, ··(s) :such other· :facts- as the :Board:_shall deem 

12 pertinent. :. '' -' 

13 i ·,.·(b) Each:-application so filed shall·b~·.,transmitted to 

14 ·' the: Bo~1 d which';· s:ubject t'o . the provisi'ons : of: this.- Act and: 

1~ ~iof.:the· Administl-Eitive Procedure A~t, shall:hear D:~d deter~ 

lq. '!nine th'e fquestion~ pres~nted by such appliCation~'-knd shali17.:--make ·arid'transinit to the(Sec~etary a I'eport· thereon :in whi~h 

18 · the Bo aid· shall set" fo'rth-' · · · : .. · c; • - : : 1 

: . 

l~L :· · "· . 

20-' 

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. {1 )~ its findings of fact arid conclusions of law; 

~<. - ,. :(2J,;its-· -rec~min~ndation on. the':ql.1'estion"~liether 

22 , a"· •. -. T' ._;..· • ,. I ;:';;;·an·· : . . ~~ , 

23 . ., ·:.. -· ( 3):: the; tenr~~ arid. c~nditions 11pon ~hid~ ariy such 

24 award should be made. 

H.R.639-2 11 

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REF ID:A4161580 

.1 .. DETER.MIN ATION O;F ~LIGIBILITY FOR A WARDS AND __ 

2 

3 

4 

,5 

6 

QUANTUM THEREOF · ·. ·· , 

SEC •. 7 .. (a)· Iu·any proced~:q.g~under *is A.ct, the applicant shall~ ,hear .tP.e. hurden.:ot ,~esta:blishing. _hy· :probative 

proof the disclosure. of.. the:: ~l!ve.1~tjon in ·ques~ion by the inventor direc~ly or _indire.ctly ·to· a __ d€fen~e _age:q.qyT and the 

7, vse ~<?.f :sucl;i .4ivention- .l?Y:;~ defe~1~·e:.agency in c?:ri,sequence 

8 of such disclosur~, e;cept-that-· ..'.:·:· ~- - . 

.. Q· . ~ ... ( 1) il1- the ·case ~of_ a: patentec1. jμvention, proof Of 

10 :·: .. ·; : : tl?:~ is.sun:p.ce ·of .a ~at~i;it ·thereon shaJl_ constitute proOf 

Jl= _· · ··of:. disclosure of sncl?: ~j1went~o;n ~to_; ~ ~~f,ense agency; 

12, and <l_ •• 

13 . {2) r in the c.a.~e:-: -of .. an- invention ·describ€d in .':a 

· _pat~nt, . applicatiqn ,:w~ich ~ha~ ; been , duly _fi.leP. apd has: 

been p~acecl under §e~re_cy p~lr~W!llt~ to ·any, provisiQn ofla_w, ·p~·9q~ of acc~s~ to such .applicatioI!. hy ··any _"otfice1F 

. ·or e_mployee of ~ny .def<::J?.Se _qgen~y, spall cionstitnt~. proof: 

of disclosure of such invention to.,su_ch agency_. · ::: · .. · ~ ·.~ ~: 

-(-b) In any p:-oce~ding ·tmder;this Act~ the respondenf 

20 . ._ d~fense ·agency. or .agencies_ shaH ,_l?e-rent~tle_d'.to assert aiiy'. 

21 .. ·legal· or _e,quitab~e def_en~~ which_'. could b~; ~s~~rt~~ by the'. 

22 United States in any suit brought by the appli1:mnt again~t'. 

23. the. United. States for ·judicial relief., qn_. acc~n~nt of the use'. 

' -. .. 'C' ,, 

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REF ID:A4161580 

7, 

1 · of ·tlie ·in~ ention ·in question· .bJ:. the United- ·States, except 

.. 2 · -that-. . . _ • :- • • '. ·' • j ~ •••• 

· 3 · ( 1) · the worth -of such_ inventioi1 ·shall be ·meastff~P 

4 · 1Qy :its contiibution ·t(), the needs of ~he national: defens,,~, 

.. 5- :and~110t by the. adyance,it makes in t]ie '.fi~ld to whichjt 

.6. pertains; . -.. ! ~ ' ,, 

'l · -~· · (2) the-~:validity.· of .. 8:ny: p!ltent issu~d to the 4i8 ventor for such invention· shall_ be: presumed in the aR9 ~gnce of Qon;ipe~ent_proof of the-invalidity of su9h paten_t; - - '.> • • ~:-

10. -and·. : .. " ( '.-

11: . · ·. ·: , (~) · prooJ .tha.t; the clisclo_s\.1l'e made by -thtj. -inv~nt~~~ 

12 . . t() any defense. agency: wa~ -sufficieptly. specific to .perll1-i_~ 

13- _the: ·nfaking or· practicing of such invention" shall- coA~ 

14 . stitute proof of. the ·actual reduction Of Su.ch. WV.e_:i;ttiQ_U: 

:J:5: ·, . , .. to p:1;actice.· : .. '. · · · · · .. ' ....... ;:·,, (;J: 

16 ( c) Payment by the United States of the cost, in whol~ 

1:7. ·_or in -part; pf qeveloping an invention '_sh~ll not bar the mak: 

H~: ing ~f an a ward. under this: Act -to -the inventor thereof; but 

19 in determining the amou:μt of any s~rnh award- consigeratiort 

20 _- ~b,all })e·-.given to·-. . 1 ·.· ; " • # ~ I •· 

~i.-: -<~ ~ (1)· the .e:x;teJl,t -to,,·.~4ich -su~h .d~vf:}~opnw:Q.t.~was . - . ---' -

22: made at the:_ ~xpense ·pt the inventor;_ and the . extent 

23 ·.,>:.to _whi~h- such dev~lopm¢nt was ·;1Ilade _a_t ,the ·eX:p~:m~e 'of 

24 · the United Sta;tes • ·. ~- · · .. ,. · · · - .· , - - .. ~ . . - •'' ... ,, . ... " -. . . . . ·- . , . - ,. 

- .. 
REF ID:A4161580 

8 

( 2) :the- extent, .to which the. inventor has .. bene2 fited and will benefit through the commercial -exploita-

' ·3 · · , . tion. 'of· ·such, invention in ·conseqtrnnce '.of development 

,4 made at th~, expense of the rUnited. States; "and 

-5 ; · ~- ·( 3')- the Bxtent tcr which the inv~ntor lias·:been de6 nied the benefits of commercial exploit~tion of subh 

··rr invention in·-· cQnsequence·. ·or any.: s·eci~ecy restrictions 

·s iinposed by the-LT nited States. -' 

~ 9 < .( d) . I(, iir. any · proceeding under this Act, it shall 

10 appear to the Board that more than one inventor is entitl~H: 

ilt: 1 to' 'b6mpensation. with . respect' to 'the 'same . invention, the' 

i2 ' Board shall · ascettain ·and determine the interests · of eaclf 

13 . such inventor, . and shall rec"ommend· th~ . division of the 

14 I.: award, in s1ich pr.6po~tions 'as it shall~ deem equitable, among < 

15 all persons whom it shall find to be entitled 'to .share therein.: 

16 - .. • ' ,t .. •, : • .- ·· .. - 7 

· ; ·PAYMENT OF- A WARDS - f ' ·,-,. t \' 

.. ' . \ . I 

11 · ·, · 'S:Ec'~ 8. ·(a) ·Anfaward made. pursu~ht'to'_this Act may 

18: ~ be ;pa!d in' a' single' payment oi·: by' su'Cli periodic 0pa:ymerits 

19. ";ris1 the Board may recommend.·. ; . r. 

20 (b) Awards so made shall be paid· from fu:rids"·ippro~ 

21·. priated to the defense ·agency ·principally interested in the 

22· • invention. for'' which such award 'is 'Iliad~,' as· dJtehilined by· 

23 the Board, ·and° may he 1paid from, any 'funds appropriated to 

24 such agency which are available~·for~ th.re'~ p'i·ocurement of 

25 equipment or ·supplies incorporating such invention or result-
REF ID:A4161580 

9 

1 'ing from the practice of such inven:tiort. : If the'. head of the 

2 . defense agency concerned certifies that' funds, are not avail3. able to such.agency for the payment 'of any·such ·~iward·;~ the 

4 Secretary shall include in his , budget estimate ,~for·, the ·De5 partment for the next fiscal year an appropiiate item for the 

6 payinent:of such award. ·. 

7 . ( 9) No a ward , nm de· 11nder this Act shalf be paid until 

8 each p,erson entitled to share' therein ·has eiecuted a release,. 

9 in such form ·as .the Secretary shall approve, by:,which such 

10: person ·sun;enders, for himself and all others ,holding rights-. 

11 from' him,, all forth er claims against 'the : U nitea States for 

12 , , compensation with respect: to the invention' ~for -which such' 

13 award is made. , , . 

14_, .,_; :(d) No award shall be paid· under this~ Act to any 

15 inventor or· with respect to any invention' in' any, amount 

16 , exceeding $7 5,000. imtil such award has. been -transmitted t~--

17, and approved by the Congress~ .The :approval o(the Con-

. 18 ,,-:gress· to ·any such '.award shaU-_,lie deemed to have beeri', 

19 granted upon the expiration of the first period:ofone ·hundre.d, 

· 20 ., and twenty .calendar days of continuous' 'session of the Corl~ 

21 · ·gress following the 'date on::which su'ch award is transmitted'. 

22 to it· for approval;'. but only· if prior· to' the '·e:Xpira'tion of such: 

23 period there has not been passed a concurrent resolution 

24 disapproving such award or approving such award in a 

25 reduced amount or subject to different conditions. If within 
-- REF ID:A4161580 

10 

1 · such period any such resolution is.passed authorizing payment 

·~ 0 -·of such- awaid··in-· a "reduced ,amount ror s~bject to -different 

3 ''·.conditions, ·payment of -s~ch award may· be "made iri ·con.:. 

4 . 'forrhity with the terms-of such resolution.· ~- - - · · · '' 

5 '. . " ·.PROCEEDINGS UNDER OTHER ·STATUTES 

6 SEC. 9. (a) Nothing contained in -this ·Act· shall-

'( l) prev·ent" ·any·· department· or ·agency of the 

8 - United States from making any·payn'ient to ·any inventor 

' 

~ · -: · 'pursu'.ln~ to any otlier pr<:> vision 'of law; or • 

10 · · · - · · ( 2) bar any inventor from :'prosecutii1g any ·suit in 

11 · · . the ·co:utt of Claims pursuant to_ section · 149ff of title 28 

12 ·. of the ·United States Code with respect to ·any invention; 

13 or from recovering judgment in any such· suit. · -. · 

1~ . ·. (b )_ No" inventor shall be entitled -to ·receive :at,iy award· 

1:?- .. pursua,,nt tQ:this"Act wit4-resp·ect to any·iiiventioll.-'. · 

16. ( ' ('l ).- for··which-- he ·has: received.'.~ny coriipensatioif 

l"i'.. · ·· . · -( other-1-than , salary received for· services ·rendered as 

1~, . ~ .anr o:fficet, or· emplby'ee "of "the ·Governm~nt), under"any 

~ -. ·- · ·other provisioff of'law; or · · · · · · / ·· - ,,. ' 

~q.,,;~' -': .. (-2) with ·respect· tO w~ch lie·· has ·instituted cany- ' 

~ · · · · -· · - suit in the-: Court of. Claims-for-' compensation· pursuant to · 

2? :; ~· ·_ ; section 1498 ·of title ·28 ·of the United States .Code:. ;·.-:· ' ·: 

r .l , - .-. - ... - -· r. j > •. ,• .- •, - • - ~ - J - ~ 
84TH CONGRESS H R 639 lsT SESSION G CD 

A BILL 

To authorize the establishment of an Inventions 

A wards Board within the Department of 

Defense, and for other purposes. 

By Mr. GELLER 

JANUARY 5, 1955 

Referred to the Committee on the Judiciary