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 
DEVELOP-
MENT 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 agree-
ment entered into pursuant to subsection (a)(1), the labora-
tory may grant, or agree to grant in advance, to a collabo-
rating 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 en-
sure, through such agreement, that the collaborating party
has the option to choose an exclusive license for a 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 ex-
plicit conditions:
‘‘(A) A nonexclusive, nontransferable, irrevocable,
paid-up license from the collaborating party to the
laboratory to practice the invention or have the in-
vention practiced throughout the world by or on be-
half of the Government. In the exercise of such license,
the Government shall not publicly disclose trade se-
crets or commercial or financial information that is
privileged or confidential within the meaning of sec-
tion 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 cir-
cumstances; or
‘‘(ii) if the collaborating party fails to grant
such a license, to grant the license itself.
‘‘(C) The Government may exercise its right re-
tained under subparagraphs (B) (ii) and (iii) only if
the Government finds 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 require-
ments for public use specified by Federal regula-
tions, 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).
‘‘(2) Under agreements entered into pursuant to sub-
section (a)(1), the laboratory shall ensure that a collaborat-
ing party may retain title to any invention made solely
by its employee in exchange for normally granting the Gov-
ernment 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 Gov-
ernment for research or other Government purposes.
‘‘(3) Under an agreement entered into pursuant to sub-
section (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 collabo-
rating 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 agen-
cy;
‘‘(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 Govern-
ment 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 Govern-
ment, 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 pur-
suant to subsection (a)(1) shall have the right of enforce-
ment under chapter 29 of title 35, United States Code.
‘‘(5) A Government-owned, contractor-operated labora-
tory that enters into a cooperative research and develop-
ment 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 con-
sistent with the research and development missions
and objectives of the laboratory.’’.
SEC. 5. DISTRIBUTION OF INCOME FROM INTELLECTUAL
PROPERTY RECEIVED BY FEDERAL LABORA-
TORIES.
Section 14 of the Stevenson-Wydler Technology Inno-
vation Act of 1980 (15 U.S.C. 3710c) is amended—
(1) by amending subsection (a)(1) to read as fol-
lows:
‘‘(1) Except as provided in paragraphs (2) and (4),
any royalties or other payments received by a Federal agen-
cy from the licensing and assignment of inventions under
agreements entered into by Federal laboratories under sec-
tion 12, and from the licensing of inventions of Federal lab-
oratories 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 ap-
propriate incentives, from royalties, or other pay-
ments, to laboratory employees who are not an inven-
tor 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 inven-
tion 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 pay-
ments shall be transferred by the agency to its labora-
tories, with the majority share of the royalties or
other payments from any invention going to the lab-
oratory where the invention occurred. The royalties or
other payments so transferred to any laboratory may
be used or obligated by that laboratory during the fis-
cal year in which they are received or during the suc-
ceeding fiscal year—
‘‘(i) to reward scientific, engineering, and
technical employees of the laboratory, including
developers of sensitive or classified technology, re-
gardless of whether the technology has commer-
cial applications;
‘‘(ii) to further scientific exchange among
the laboratories of the agency;
‘‘(iii) for education and training of employ-
ees consistent with the research and development
missions and objectives of the agency or labora-
tory, and for other activities that increase the
potential for transfer of the technology of the lab-
oratories of the agency;
‘‘(iv) for payment of expenses incidental to
the administration and licensing of intellectual
property by the agency or laboratory with re-
spect to inventions made at that laboratory, in-
cluding the fees or other costs for the services of
other agencies, persons, or organizations for in-
tellectual 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 para-
graph (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 ap-
pears and inserting in lieu thereof ‘‘payments’’;
(B) by striking ‘‘the payment of royalties to
inventors’’ in the first sentence thereof and in-
serting 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 inven-
tors,’’; 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 agen-
cy, or’’.
SEC. 6. EMPLOYEE ACTIVITIES.
Section 15(a) of the Stevenson-Wydler Technology In-
novation Act of 1980 (15 U.S.C. 3710d(a)) is amended—
(1) by striking ‘‘the right of ownership to an in-
vention under this Act’’ and inserting in lieu thereof
‘‘ownership of or the right of ownership to an inven-
tion made by a Federal employee’’; and
(2) by inserting ‘‘obtain or’’ after ‘‘the Govern-
ment, 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 Tech-
nology Transfer Act of 1986,’’.
SEC. 8. NATIONAL INSTITUTE OF STANDARDS AND TECH-
NOLOGY 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 Insti-
tute 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, 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 In-
novation Act of 1980 (15 U.S.C. 3710(i)) is amended—
(1) by inserting ‘‘loan, lease,’’ after ‘‘department,
may’’; and
(2) by inserting ‘‘Actions taken under this sub-
section shall not be subject to Federal requirements on
the disposal of property.’’ after ‘‘education and re-
search activities.’’.
SEC. 10. PERSONNEL.
The personnel management demonstration project es-
tablished under section 10 of the National Bureau of Stand-
ards 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 Fas-
tener Quality Act (15 U.S.C. 5401) is amended—
(1) by striking subsection (a)(4), and redesignat-
ing paragraphs (5) through (9) as paragraphs (4)
through (8), respectively;