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~F ID:A41484BO 

0 i5 fi>Un: L4w 1!86.1 

·section 7 as may be .Iiecessary to effectuate tho purposes of this· 

Act; · · · 

" (2) authorized and directed by regulation or order to require 

regular reports .and records with respe_ct to, and to provide. for fro" 

queiit inspections of, the proi;Iuction of fissionable material in 

the condu~t of research and development activities. 

I 

PATENTS AND INVENTIONS 

' .· S1w. 11. (a) PnooucTION AND MrLITARY Urrrr.rzATIQN .. 

( 1) No patent shall hereaf~ei· be granted for any invention or 

discoveu which is useful solely 'in. t}le f>roducqon of fissionable inate-. 

rial or in the utilization of fissionable material or atom\c energy for 

a ~ilitary weapon. Any patei1t granted for uny such invention or 

discovery is hereby revoked; and just ~?~p~ns:1fio11 shall be made therefor~ - - -- .- - · 

-(2) No patent hereafter granted shall confer any riglits·with r:espect 

to any inve11tion Ol" ~liscovery to the extent that such invention or 

discovery is used in the production of fissionable material or in th~ 

utilization of fissionable matel'ial ()r atpmic energy for a military 

weapon. Any rights cqnforred by ~.ny patent heretofore granted for 

any i1u:ention or discovery are hereby revoked to the extent that such 

frwention or discovery is so used, and. just conil)ensation sb:all. be \ 

made therefor. 

(3) Any person whi;> has made or hereaf.ter makes any invention 

or discovery usefql in the production of fissionable material or in the 

utiJizati'C)n of fissicmn:ble. materi:Ll or atomic energy for a military· 

_wMpon ·sh::lll file. 'vith the Commission ~report containing- a 'complete 

description ther.eof, unless such i1we11.tion 01· discovery is dc·~ribcd in 

i:tn a-pplication for a pa:fent filed in the Patent Offic.c by such person 

within the time required" for the filing of such report. The report 

covering any ~pch ipvenJion or discovery .shall be filed on or befqre 

whichever of the fo11owing is the latest: (A) The sixtieth day a'fter 

the date of enactment of this Act; (B) the sixtieth day after the c0mple_tion of such invention or .discovery; 01• { C) the sixtieth day afte.r 

such person first discovers or first hns reason. to: believe that such 

.invention or discovery is useful in such p1~ocluction or uti1liz:1tion. 

(b) U~E·OF lNVE"NTIONS Fon RESEAnpH.-No patent.hereafter granted 

shall confer any r.ights with rcspe'ct to :;iny invention or discove1:y to 

the :extent that such invention O!' cliscqvery is used in the conduct. of 

reseal'.ch or devei'opment activities in the fields specified in section 3. 

·Any· rights conferred by a_ny patent heretofore'gt:antGd for any invenc 

ti'on or discovery are heteby rev.okecl to the. extent th.at such invention 

or discovery is so used, and just.comp~rtsation shall be made thqrefor. 

(c') 'NoN~HLlTAHY. UTILIZAT-ION..-

( 1) It shali be the du,ty of the Commission to declare any patent to 

be affected with the publie< interest if (A} th(\ invention or discovery 

covered by·the patent.utilizes or is es!')e11t.jal in the utiliz:Lfioo.of fiss1on~ 

able material or atomic energy; 'and (13) the li'censi1)g pf suth invention or discovery llnder tJ:1:j5 Subsection is Iiecessar.y to effectuate' th() 

policies and purposes of this Act. 

(2). Whcnever .. an:y pafont·liaf'l. b?en declared, pursuant to paragraph (.1), to be affected with the public rnterest-
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.') ·U ' 

16 REF ID: A4148480i 0 

[P\'.ID. LAW 1186.) 

(A) The Commission is hereby licensed to use the invention or 

discovery covered by such patent in performing any of its powers 

wider this .A,ct; and 

(B) Any _person fu whom a license has been issued under section 

7 is hereby licensed to use the invention or discovery covered by 

such patent to the extent such inven'tion or discovery is used by him 

in carrying on the activities authorized by his license under 

section 7. ' 

The owner of the I?at.ent shall be entitled to !t reasonable royalty fee 

for any use of an mvention or discovery licensed by this subsoction. 

Such royalty fee may be agreed upon by such owner and_ the licensee, 

or in the absence of such agreement shall be determmed by the 

Commission. 

(3) No court shall have jurisdiction or power to stay, restrain, 

or otherwise enjoin the use of any invention or discovery by a licensee, 

to the extent that such use is licensed by paragraph (2) above, on 

the ground of infringeli1ent of any patent. If in any action for 

infringement against .such licensee the court .shall determine that the 

defendant is exercising such license, the measure of damages shall 

be the royalty fee determined pursuant to this section, together with 

such costs, interest, and reasonable attorney's fees as may be fixed 

by the court. If no royalty fee has been determi nee!, the court shall 

stay the prnceeding until the royalty fee is determined pursuant to 

this section. If nny such licensee shall fail to pay such roya.lty fee, 

the patentee may bring an action in any court of competent jurisdiction 

for such royalty fee, together with such costs, interest, and reasonable 

attorney's fees as may be fixed by the court. . (cl) AcQmscTION OF PATENTs.-The Commission is aut.J1orizecl to 

purchase, or to takC, .. Tellifisiti0:11, 01-:-cci11Clernn, and make just compen-

-sation .. ioi\ T1) a11y inyenl!g1~ or discovery which is useful in the 

p1:0cllfcfion ·orfissfoilrLole mttterial or in the utilization of fissionable 

··mnfoi'iwt or atomic energy :for a. rnilita.ry weapon, or which utilizes 

or is essential in the utifomtion of fissionable material or atomic energy, or (2) ll,.!!Y _patept or_ pa_ten_t npplication covering any such invention 

or cli_scovQ.J:y. The Commissioner of Patents shall notify the Cpmmission of all applications for patents heretofore or hereafter filed 

which in his opinion disclose such inventions or discoveries and shall 

prqvido the Commission access to all snch applications. 

( e) CoMmNSATCON A WA nos, AND ROYALTn:s.-

(1) PATENT <.:;011u•E:NSATION HOAHD.-The Commission shall desig• 

nate a Pate]lt Compens_nt.i_on Board, .consisting o~ two or more 

employees of the Comm1ss10n, to consider apphcat10ns under this· 

subsection. 

(2) Er.1onnuTY.-

(A) Any owner of a patent licensed under subsectioq (c) (2) 

or any licef1see thereunder m~t.y make application to the Commission for the cletcl'mination of a reasonable royalty fee in accordance with such procedures as it by regulation may establish. 

(B) Any person seeking to obtain the just compensation provided in sub.sections (a), (b), or (cl) shall make applie;tt;ion 

therefor to the Commission in accordtrnce with such procedures 

as it mn,y by regulation cstrtblish. 

( C) Any person 1na!':ing any invention or discovery useful in 

the production of fiss10nn.ble material· or in the utilization of 
REF ID-4148480 

17 (PUB. LAW MS. 

fissionable material or atomic energy for a military weapon wh9 

is not entitled to compensation therefor under subsection (a) and 

wh~ has complied '\V~tq sl!,_bsecti'on(a) (3) ab~w~ may make applicatrnn to the Comnuss1on for, and the Oomm1ss19n may :granh an 

award. · (D) Any person making application under this subsection. 

shall have the right to be represented by counsel. 

(3) STANDARDS.-

(A) lH determining such reasonable royalty fee, the Commis-·· 

sion shall take into consideration any defense,. general or spec;ial, 

that might be pleaded by a defenda,nt in an action for- infringement, t.he extent to whjch, if any, such pa.tent was elev.eloped ' 

through federally financed research, the degree of utility, no:\rclty, 

apcriihf>O'fl,ance ·of 'the i11vei1tion or disc0vc1'y, and may c011sidet 

the cost to the owner of the patent· of clevelo1:>i11g such i!i1vention 

or·discovery or acquiring.such patent. 

( B). In detem1ining what constitutes just compens::1J.ion under 

subsection (a), (b'), oi' (d) a~ove, the Commission shall take info 

account the considerat}ons set forth in paragraph (A) ab'ove,. and 

the adun:l use of such inv~ntion. or discovei;y, and may clctei:mine 

that such comp.ensat.ion be paid in periodic paymei1t.s or irt l1 

lump smiL · (Q) Il1 d~t.ermining t.he amount of any award under paragraph (2:) CC) of this subsectioN, th~ Commission shaJl take into 

account the considetati9ni;; set forth in paragraph (A,) :tbove, 

n:ncl the actual use: of si1ch :invention or clisc9ve1f Awards so 

made may be paid by the Commission in periodic payments or 

'in a ltimp stun:. 

( 4) JumcIAL nEvn~,w,-Any' person a'gguievecl by any determination 

of the Commissio_n of a.n awar.d qr· of ii reasoNable lioyalty fee may 

obtain a revie'.v of_ s11~h d~terminatioi1 in the Court of Appeals for the 

District· of Columbia by filing in such (!ourt, within tJ1:i.1:ty cl~ys -after 

notice of snch determination, a writ.ten petit;iqn. pr,aying that sucl;i ~letermin:ation be set aside. A copy of such petiti'on shall pe forthwith 

seryed upon the Commissio11 and there11pon the CornmissioH shall file 

with the court a certified trar\script of the cntiFc recor.cl in the pl;Oce~clin.g, inclmling the finclii1gs' aJ1~l coiiqlu_sions 11por~ which the cl'etermn1at10n was based. Upon tlie filmg of such tra1)scqpt the c.ourt shall 

have exclusive juriscliction upon the record certified to it to affirm :the 

(letermina6'on iit its· entirety or.set it aside and rcnmnd it. to the Commissio11 fot· further p1'oceedings. The find i1rgs of t.he Commission as 

to. the fact!?, if supported by ~1ibst::tntial eviclence, shall l:>e conclm,;ive. 

The court's juclgmet1t shall he final, subject, however, to seview by 

the Supmme Court of the United States upon wsit. ·of certiora:ri on 

petition therefot J.mcler section 24:0 of the Jucl'icial Code (U. S. C., 

title 28, sec, 34'7), by the Commission or any party to the court proceeding. , 

GENERAL AUTHORITY 

SEG. 12. (a) In the performance of its. funci'.ions the Commission 

is authorized to-

(I} establish advisory boards t.o advise with and make recom• 

me11dat:ions to the. Commission on legislation, policie~, aclmini~­

trat.ion, research, and other matwrs; I