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820 CONGRESS 

2o8ESSION 

REF 

IN THE HOUSE OF REPRESENTATIVES 

·"'.-' .. . ,., ., ., 

MARCH 31, Hl52 

·Mr. CELLER- ii{troduced 'the :following bill; which \vas referred to the Com-

:r_nitt~e on ~he Judiciar~ 

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To authorize the establishment of an Inventions Awards Board 

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~-- ''"' witlim_.,the- Depaitment 'of Defense; and for other purposes. 

1 Be it enacted by the Senate and II ouse of Repre8enta-

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·2" ..:tives-of the United States of America iri ·congress assembled, •: •r-, 

~·3i· '.That-';hi~; A'ct··~a~y:--l;e,.cit~d as th~·.-''Inverition~- Awards 

4 Act of 1952". 

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DECLARATION OF POI,ICY 

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-:g::: -.· ~s~o:-2.'"lt is" the 'purpose of this Act" to fost~r in~enti~~ 

- : !f ~;·f~~ rtati6'nal -defense· through the establishment within, th~ •· r. •· - • • r <> r • ( •. ' 

: ·s :·:.Departni~~t of -Defense . of ·an Inventions· A wards" Bo~1:ci 

9 which shall be authorized to recomme~d to the Secretary the 

10 ·making of such awards, to be known as National Defense 

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i A wards, as it shall consider just for meritorious mven2 tions contributing to the national defense. 

3 DEFINITIONS · 

4 SEC. 3 . .As used in this Act..:....:.. -.- : ~ T'.·. ~----" 

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5 (a) The tei·m "inv~ntion" means· any art, machine, · · 

6 manufacture, .. composition .. of matter_,--Or- any new and use7 ful _improveme~t thereof w~ich is usef?l, or sus.ceptible of 

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8 use, for application)n the national defense of the United 

. 9 ·. States, and which is not· ·subject: to. the ·provisions of the 

10 Atomic Energy Act of 1946, whether or· not such inven11 tion is patentea~·u.ilpatehted, :or patentable·. 

12 (b) The term "inventor" means any person who has 

13 made an invention. - . ' . . . . . 

14 'Cc) . The t_erm "person~' shall include any natural pe~son, - -

15 d h" h . . . an, is . errs~ I '-- . 

•, '• '"'" ; i'>-. 

i6, ·. (d) . The term "the Dep.artment". shall mean ... *~ Pepart- _,. ' . . . . . .. ··-

17 meJ)t of. Defense. aJ)d tP,e term . ';S~cre,tary',' shall II1:ean the . . ' . . ' . . . ~ , 

18 Secretary of Defense. • ". ~- ·; • • ' ! I. 

" 19 ( e) The. term "defense agency" i;neans the DepartmeP; t, 

20 or any other department, agency, or indep~:Q.~en~ ,establi~!i--

21 ment in the -executive branch of the G~vernment. ( exce;i>t 

22 the .Atomic Energy Commission) , .. and any wholly o~ed 

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, .J., .. ; Governmei:JJ corporation, :designated by· the. President as JL ' . 

·P defense· agency _for the purpos¢s''of this Act. : · 

:~.: . (f)" The term.,,"Boar4"~.means the .Inventions_ Awards . , . 

·/L ·Board es.tii.blishe~ · pu~:suant:·to section .5: o'f this .Act. . . . ;_. 

5 · .. ._Jg) The· term -.'·'award"~ means. a . .,Natio:hal .-D~fense 

6 A w&.rd authorized by section. 4. bf this .Act. . · 

.7 NATIONAL, _DJi)FENSE AW.4.RDS 

.,8: .. ·. . SEC. 4. Whenever any ·mvent?i has: disclose"d to any 

--~- defei;ise agenoy- any ·iri:vention. :which .contributes. or has: con19 ... tribut~d ·substantially to. the. n&.tio11aL defense,_ and· any suck 

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agency in consequence of .such disclosute has. used such in~~ 

.vention·, the. Sec)·etary;-.u_pon: ~the teconimendati~n of tlie~ 

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- : ~ . · Bo~td,·_may ip.a:ke a -;N f,Lt_ional Defense A ward to_ such' inven-:: 

~~: , tor_ih suoh am,ount; ·and ~ul>j~ct~ to such.terms -and ,c01idition_s,~ 

. ~5 :_ ~s th_e Board shall. det~rmine in ··conformity, with 't~e :prOi 

19 .. ,visiorn~. of.thi_s.Act tQ.b¢just.c,ompensation fotsuch;invention. 

- ... - ..... ' . ..: 

18. l~~~IONS AWARI>S' BOARD .. : .. , _ - >' . 

~~t~:-~:-.:~1~ ·· SE_C. ~ ~5.': JaJ .• Xhe__,~ Secrett1ry. j_s . authorized __ to~ establish: 

2? :< wi.thin,,thet '.Q~p~ttμi~11t _an· Inveriti<?ns . .A'.wp,rds Boa.rd which· 

~~-·_s4.~JJ;- b.e c;;omp:osed ot noLmore than fifteeif. :rri~filbers ap-:~ 

~?;f~'.PPi»~te.d.:.bt ,th~- Sft¢r~_ta~y,. for:such· 1~erm _oi· te~il ·as :·he· may . 

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'1 specify, ~rom persoris in ci\rif life· ,:Vho are·eminent.in one~·or 

2 more of the. following ·fields of activitj': ·Invention,- 'sdence 

3 research, development, ancl patent· law. ·. The Board sha11 

4 meet at such fones as the Secretary may specify. to consider 

.5 applications ma~e pursuant t'o secpion 6 of this Act fdr awards .. 

5· Five members ;s1:rnU constitlite a qonun of the Board. .. 

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. 7 (b) Each inember shall rec~ive compensation at the rate 

· 8 · of· $.7 5 for· each da.y of his attendance:. at rneetings of th'e 

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· 9 · Board, and shall be reimbursed for all travel expenses a'c110 tually' incmTed by him in the performa11Ce of his- duti.es~as·a· 

11 member of the Boai·d; 

12 ·_ . · ( c) The B0ard shall perforni the duties· required of it by 

13· .. se~tion 6 of this Act. The Secr~tary. shall provide·. the Board 

14 with such personnel and facilities as he may determine to be 

15· -~required by .the Board for the perfo:rmaiice of i"ts:.fiinction.s.· 

16' '( d) ·The Board may promi1lgate such::fules ·and 'regula- . . 

17 tions, not inconsistent 'Yith this Act, as ma3; ·be req1iire~. foi· 

18 the performance of its duties. he:reilnde1~ .. 

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19- APPLICATIONS FOR . A WARDS :A.N.D PROCEEpINGS THEREON 

20: SEc. 6. (a) Any inventor 11iay file with- the··Secretarf 

21:. an application. for. ari award · u~der. secti01i 4 of this .. :Act.: 

2? .. Such application may be filed.11pon inforrtiation .. ancf:.belief~· 

23 and sha11 contain a statement concerning- . 

/ 24 ( 1) the nature of such invention; 

( 2) the ownership thereof; 
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. ( 3) the time and manner of its disclosure to any 

defense agency; 

( 4) _ the, natui·e and extent .of its .use by. any defense 

agency; 

( 5) the utility of such invention to the United 

States in the interest of national defense; 

( 6) the nature_ and extent of the compensation re-

. ceived by such inventor from the United States under 

any other provision of law, for or on. account .of the 

development or use of such invention; 

(7) the nature and extent of the .compensation .for 

which application is made pursuant to this Act; and.- : · 

( 8) such other facts, as the Board shall deem 

pertinent. 

(b") Each application so filed shall be . transmitted ·to 

the Board which, subject to the ·provisions of' this Act and 

of .the Administrative Procedure Act, Bhall .hear and deter-

. mine the questions presented by such application; and shall 

make and transmit to the Secretary a report :thereon in which 

20 the· Board shall. set forth15 

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21 ( 1) its findings· of fact and c(wclusions of faw.; : 

22 . ( 2) its recommendation on the' qnestiori ·whether 

23 . the· applicant is entitled 'to an award under this Act; 

24 and 

H. R. 7316---2 
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(3) the terms and conditions upon which any st\ch 

award should be made. 

(°' 3 ·_ ~ ~- . DETERJ\HN ATION OF ELIGIBILITY FOR A WARDS AND 

4 . QUANTUM THEREOF. 

,_. 5: SEC. 7. (a) In any proceeding under this Act, the ap- . . . . 6 plicant shall bear the bui·den of establishing by probative 

-· 7 '. pi'oof · the diselosure. of the -invention in question by the 

-. : 8 _·inventor_ directly or indirectly to a defense agency and the 

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·' · 9 ·:. usi:L .of such invention by a defense age:qcy m _consequence 

lo of such disclostire, except that-· 

· ll , . ( 1) .in tho case of a patented invention, proof ·of 

12> : ~the issuance of a patent. "thereon shall c"onstitute proof 

i3:. ·-. -' of disclosure "of such invention to" a defense agency; and 

J4 ( 2) in the case of an invention cfoscribed in a 

rJ5.. . -patent application which has been duly filed and has 

~lfr.:. . .been placed' under secrecy ptli'suant to any provision of 

: 1:7: .:· ' :1aw, p1;oof of access to such applicatfon by any officer 

~ls:- _- -~--- or empfoyee of any· defense ag~ncy shaH constitute proof 

_·J9_- . - : _of_ disdosu~e of such inv'ention to such agency ... 

20 (b) In any proqeeding--under this~Act, ·the i~espondeiit 

21- .. d_efense . agency·_ or agencies sh_all be. entitled to assert any 

:;~2 : legal ot. equ~ta ble defense- which could . be asserted by the 

~ ~:r Uriited ·states in ·any suit bi·ougbt by the ~pplicant ·against 

·2.1 the United States for judicial relief on account.of the use 

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1 of the invei1tion m question hy the_ United States, except 

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( 1) the woith of .such invention shall be. meastll"ed 

by its contribution to the needs of the. national defense, 

and not by the advance i,t makes in the field 'to which it 

pertains; 

( 2) the validity of ·any patent issued to_ the inventor 

for such invention shall be presumed in the ·absence: of 

competent ;p1;oof of the invalidity of sl.10h patent;. and .. 

( 3) proof that the disclosure made· by the inventor 

to any defense agency was sufficiently specific to perrrilt 

the making or practicing of such· invention· shall constitute proof of the actual reduction of such invention to 

practice. 

( c) Payment by the United States of the cost, in whole 

or in part, of developing an invention shall not bar the making of an award· under this Act to' the inve'nt?r tl~ereof, but 

in determining the ammmt of any such ·awanl consideration 

19 . shall he given to- ,. '-··-· 

20 ( 1) . the. extent· to which ·such "develop:tnent was 

21 made at the expen.se ·of tlie inventor, and the ext~nt. to 

22 which such developnient was made at the expense· of the· 

· 23 · United States; 

24 · _ ( 2·) .. ~the~ ex~ent. ·to_ which. the inventor has ·b~nefit~d 
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- and will benefit_ through the commercial exploitation. of 

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such invention in consequence of development made at 

the expense of the United States; and 

(3) the extent to which the-inventor has been denied the benefits of, commercial exploitation of. such 

invention in consequence of any secrecy _ restrictions 

_imposed by the United States . 

( d) · If, in any proceeding under this Act, it shall appear 

the Board that more than one inventor is entitled ·to 

10 compensation with respect to the same invention, the Board 

11 shall ascertain· and determine the interests. of each such -in12 ventor, and shall recommend the division of the award, in 

13 - such proportions as it shall deem -equitable, - among all 

14 persons whom it shall find to be entitled to share therein.. 

15- PAYMENT OF AWARDS 

16 SEC. 8. (a) Any award made pursuant to this Act 

17 may be paid- in a single payment or by such periodic pay18 men ts as -the Board may recommend. 

19 (b) Awards so made shall be paid from fonds ·appro20 priated to -the -defense agency principally interested in the 

21 _invention· for which such award is made, as determined by 

22 _ the B<?ard, and may be paid frorri any funds appropriated to 

23 such agency which are available for the procurement of 

::2-4 . _equipment _or supplies incorporating. such invention or result-

-25 ing from the practice of st;ch invention. If the head of 
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·:1 ·the .. > defens_e_, 'agency concenied certifies· that funds. are not 

.2,: .. avillable·to such agency·for the payment of any su.ch aw1:1ird, 

3 the Secret::try shall includ~ in . his budget estimate for the 

4 Departnierit for t?e next·fiscal year an ~ppropriate item for 

0 5 the-:payme:rit of such award. . . . . ' ·, ' "· '. 

'ff; , ( c) No award made .under this Act shall be paid uptil 

7 ·each person; entitled to sh_are therein has· executed a releas·~, 

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

. 9 ':person surrenders,_ for himself arid all otJlers holding righ'ts 

10·. ·from -liim, :an ·further claims agamst the United States for11 : compensation with ·respect to the' invention for which such 

12 ·d" .- ; d " ' . awai. is ma e. · . . . . 

l3 .· ,, ~· ( d) . No. :award shall be paid linder this Act to any 

14 inventor: or . with:- respect to ariy· invention in ·any·, amou:Ilt. 

15-~~ exce_eding ·$75,QOO, until :such award-has bee:ri. transmitted iQ: 

1() ·and. approved~by. the~·congress. ·.The· app1:oval. of: the Con.:.~ 

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• gress. to .. apy :such. award~ shall he,.:dee;med to have beeif 

18 granted upon the expiration of the first:_.p.eriod::of one· hundred 

19:-:, and· twenty calendar. days of continuous session of the Con~ 

2Q '. gress (allowing· the date-on which. ;such . a ward is · trans~tted 

21 to'-it·for. approval; but:o:Illy ·if priOi~ .to,the ·expiration ·of such 

22 period there has not been passed a concurrent resolution 

23 disapproving such award or approving such award in a. 

24 reduced amount or subject to d.ifferent conditions. · If within 

25 such period any such resolution is passed authorizing payment 
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1 of such award in a reduced amount or subject to different 

2 conditions, payment of such award may be made in con3· formity with the terms· of such resohition. 

· 4 . PROCEEDINGS UNDER OTHER STATUTES 

5 SEC. 9. (a) Nothing contained in this Act shall6 ( 1) prevent any department or agency of the 

7 United States from making any payment to any inventOr 

8 pursuant to any other provision of law; or 

9 (2) bar any inventor from prosecuting any suit in 

10 the Court of Claims pursuant to section 1498 of title 28 

11 ·of the United States Code with respect to· any invention, 

12 or from recovering judgment in any such suit. 

13 (h) No inventor shall be entitled to receive any award 

14 pursuant to this Act with respect to any invention-

~~ ( 1) for which he has receive~ any compensation 

I 16. (other than salary received for ·services rendere.d as an 

l 7 officer or employee of the Governinent) under any other 

:l.8 provision of law; or 

19 ( 2) with respect to which he has instituted any 

20 suit in the Court of Claims for compensation pursuant to 

21 section 1498 of title 28 ·of ·the United States Code. 
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82D CONGRESS 

2D SESSION H. R. 7316 

To authorize the establishment of an Inventions 

A wards Board within the Department of 

Defense, and for other purposes. 

·By Mr. GELLER 

MARCH 31, 1952 

Referred to· the Committee on the Judiciary