[Federal Register Volume 66, Number 126 (Friday, June 29, 2001)]
[Rules and Regulations]
[Pages 34545-34546]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-16137]


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DEPARTMENT OF COMMERCE

Technology Administration

37 CFR Part 404

[Docket No. 010111012-1012-01]
RIN 0692-AA17


Licensing of Government Owned Inventions

AGENCY: Technology Administration, Commerce.

ACTION: Final rule.

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SUMMARY: This final rule incorporates a recently enacted change to 35 
U.S.C. 209 with respect to the granting of exclusive patent licenses by 
Federal agencies. Federal agencies are now authorized to provide the 
public no less than 15 days to file an objection to the proposed 
license. Under the present regulation in 37 CFR part 404, the notice 
period is 60 days although no specific time period was required by 
statute. This statutory change is being implemented to address the 
concern that the granting of exclusive licenses was being unnecessarily 
delayed by the 60-day notice period.

DATES: This rule is effective June 29, 2001.

FOR FURTHER INFORMATION CONTACT: Mr. John Raubitschek, Patent Counsel, 
at telephone: (202) 482-8010.

SUPPLEMENTARY INFORMATION: In section 4(e) of Public Law 106-404, the 
Technology Transfer Commercialization Act of 2000, signed by the 
President on November 1, 2000, agencies are now required to give the 
public notice of at least 15 days before granting an exclusive or 
partially exclusive license on a federally owned invention. This is 
reflected in revisions to 37 CFR 404.7(a)(1)(i) and (b)(1)(i). One of 
the reasons for the minimum notice was a concern that the granting of 
exclusive licenses was being unnecessarily delayed by the 60 day notice 
period prescribed by the current regulations. Although agencies may now 
issue shorter notices, they are expected to balance the need for 
promptness against the statutory purpose of ensuring that Government 
inventions are used to benefit the public.
    Public Law 106-404 makes other changes to 35 U.S.C. 209 which will 
be separately addressed in a proposed rule.
    In addition, the rule now cites 35 U.S.C. 208, instead of 35 U.S.C. 
206, as the correct authority for the Department of Commerce over the 
patent licensing regulation. The rule also cites section 3(d)(3) of DOO 
10-18, instead of section

[[Page 34546]]

3(g), for the specific delegation to the Assistant Secretary of 
Commerce for Technology Policy. Under the authority of 35 U.S.C. 208 
and the delegation by the Secretary of Commerce in section 3(d)(3) of 
DOO 10-18, the Assistant Secretary of Commerce for Technology Policy 
may issue revisions to 37 CFR Part 404.

Classification

    Administrative Procedure Act: Pursuant to 5 U.S.C. 553(b)(B), the 
Assistant Secretary of Commerce for Technology Policy finds good cause 
to waive the requirement to provide prior notice and an opportunity for 
public comment as being unnecessary. This regulation incorporates the 
language of the statue, verbatim. The Technology Administration is 
exercising no discretion for which public comment would serve a useful 
purpose and has no authority to change the statutory requirement.

Executive Order 12866

    This rule has been determined not to be significant for purposes of 
Executive Order 12866 (58 FR 51735, October 4, 1993).

Executive Order 13132

    This rule does not contain policies with Federalism implications as 
that term is defined in Executive Order 13132.

Regulatory Flexibility Act

    Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for this rule by 5 U.S.C. 
553, or by any other law, this rule not subject to the analytical 
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.).

Paperwork Reduction Act

    This rule does not impose any collection of information 
requirements under the Paperwork Reduction Act (44 U.S.C. 3501 et 
seq.). However, OMB approval was recently obtained for the application 
for a license and the utilization reports. The number is 0692-0006 an 
expires on June 30, 2003.

List of Subjects in 37 CFR Part 404

    Inventions, Patents, Licenses.

    For the reasons set forth in the preamble, 37 CFR Part 404 is 
amended as follows:

PART 404--LICENSING OF GOVERNMENT OWNED INVENTIONS

    1. The authority citation for 37 CFR Part 404 is revised to read as 
follows:

    Authority: 35 U.S.C. 208 and the delegation of authority by the 
Secretary of Commerce to the Assistant Secretary of Commerce for 
Technology Policy at sec. 3(d)(3) of DOO 10-18.


    2. Section 404.7 is amended by revising paragraphs (a)1)(i) and 
(b)(1)(i)


Sec. 404.7  Exclusive and partially exclusive licenses.

* * * * *
    (a)(1) * * *
    (i) Notice of a prospective license, identifying the invention and 
the prospective licensee, has been published in the Federal Register, 
providing opportunity for written objections within at least a 15-day 
period;
* * * * *
    (b)(1) * * *
    (i) Notice of a prospective license, identifying the invention and 
the prospective licensee, has been published in the Federal Register, 
providing opportunity for written objections within at least a 15-day 
period and following consideration of such written objections received 
during the period.
* * * * *

    Dated: June 21, 2001.
Bruce P. Mehlman,
Assistant Secretary of Commerce for Technology Policy.
[FR Doc. 01-16137 Filed 6-28-01; 8:45 am]
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