Technology Transfer Commercialization Act of 2000
PL 106-404 (H.R.209), enacted 11/01/2000

114 STAT. 1742 
PUBLIC LAW 106-404—NOV. 1, 2000 
Public Law 106-404 
106th Congress 
Nov. 1, 2000 
[H.R. 209] 
Technology 
Transfer 
Commercializa-
tion Act of 2000. 
15 u s e 3701 
note. 
15 u s e 3701 
note. 
An Act 
To improve the ability of Federal agencies to license federally owned inventions. 
Be it enacted by the Senate and House of Representatives 
of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "Technology Transfer Commer-
ciaHzation Act of 2000". 
SEC. 2. FINDINGS. 
The Congress finds that— 
(1) the importance of Unking our unparalleled network 
of over 700 Federal laboratories and our Nation's universities 
with United States industry continues to hold great promise 
for our future economic prosperity; 
(2) the enactment of the Bayh-Dole Act in 1980 was a 
landmark change in United States technology policy, and its 
success provides a framework for removing bureaucratic bar-
riers and for simplifying the granting of licenses for inventions 
that are now in the Federal Grovernment's patent portfolio; 
(3) Congress has demonstrated a commitment over the 
past 2 decades to fostering technology transfer from our Federal 
laboratories and to promoting public/private sector partner-
ships to enhance our international competitiveness; 
(4) Federal technology transfer activities have strengthened 
the ability of United States industry to compete in the global 
marketplace; developed a new paradigm for greater collabora-
tion among the scientific enterprises that conduct our Nation's 
research and development—^government, industry, and univer-
sities; and improved the quality of life for the American people, 
from medicine to materials; 
(5) the technology transfer process must be made "industry 
friendly" for companies to be willing to invest the significant 
time and resources needed to develop new products, processes, 
and jobs using federally funded inventions; and 
(6) Federal technology licensing procedures should balance 
the public policy needs of adequately protecting the rights 
of the public, encouraging companies to develop existing govern-
ment inventions, and making the entire system of licensing 
government technologies more consistent and simple. 
SEC. 3. COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS. 
Section 12(b)( 1) of the Stevenson-Wydler Technology Innovation 
Act of 1980 (15 U.S.C. 3710a(b)(l)) is amended by inserting "or, 
subject to section 209 of title 35, United States Code, may grant 
PUBLIC LAW 106-404—NOV. 1, 2000 
114 STAT. 1743 
a license to an invention which is federally owned, for which a 
patent application was filed before the signing of the agreement, 
and directly within the scope of the work under the agreement," 
after "under the agreement,". 
SEC. 4. LICENSING FEDERALLY OWNED INVENTIONS. 
(a) AMENDMENT.—Section 209 of title 35, United States Code, 
is amended to read as follows: 
"§ 209. Licensing federally owned inventions 
"(a) AUTHORITY.—A Federal agency may grant an exclusive 
or partially exclusive license on a federally owned invention under 
section 207(a)(2) only if— 
"(1) granting the license is a reasonable and necessary 
incentive to— 
"(A) call forth the investment capital and expenditures 
needed to bring the invention to practical application; or 
"(B) otherwise promote the invention's utilization by 
the public; 
"(2) the Federal agency finds that the public will be served 
by the granting of the license, as indicated by the applicant's 
intentions, plans, and ability to bring the invention to practical 
application or otherwise promote the invention's utilization by 
the public, and that the proposed scope of exclusivity is not 
greater than reasonably necessary to provide the incentive for 
bringing the invention to practical application, as proposed 
by the applicant, or otherwise to promote the invention's utiliza-
tion by the public; 
"(3) the applicant makes a commitment to achieve practical 
application of the invention within a reasonable time, which 
time may be extended by the agency upon the applicant's 
request and the applicant's demonstration that the refusal of 
such extension would be unreasonable; 
"(4) granting the license will not tend to substantially 
lessen competition or create or maintain a violation of the 
Federal antitrust laws; and 
"(5) in the case of an invention covered by a foreign patent 
application or patent, the interests of the Federal Government 
or United States industry in foreign commerce will be enhanced. 
"(b) MANUFACTURE IN UNITED STATES.—^A Federal agency shall 
normally grant a license under section 207(a)(2) to use or sell 
any federally owned invention in the United States only to a licensee 
who agrees that any products embodying the invention or produced 
through the use of the invention will be manufactured substantially 
in the United States. 
"(c) SMALL BUSINESS.—First preference for the granting of any 
exclusive or partially exclusive licenses under section 207(a)(2) shall 
be given to small business firms having equal or greater likelihood 
as other applicants to bring the invention to practical application 
within a reasonable time. 
"(d) TERMS AND CONDITIONS.—^Any licenses granted under sec-
tion 207(a)(2) shall contain such terms and conditions as the 
granting 
agency 
considers 
appropriate, 
and shall 
include 
provisions— 
"(1) retaining a nontransferrable, irrevocable, paid-up 
license for any Federal agency to practice the invention or 
114 STAT. 1744 
PUBLIC LAW 106-404—NOV. 1, 2000 
have the invention practiced throughout the world by or on 
behalf of the Government of the United States; 
"(2) requiring periodic reporting on utilization of the inven-
tion, and utilization efforts, by the licensee, but only to the 
extent necessary to enable the Federal agency to determine 
whether the terms of the license are being complied with, 
except that any such report shall be treated by the Federal 
agency as commercial and financial information obtained from 
a person and privileged and confidential and not subject to 
disclosure under section 552 of title 5 of the United States 
Code; and 
"(3) empowering the Federal agency to terminate the 
license in whole or in part if the agency determines that— 
"(A) the licensee is not executing its commitment to 
achieve practical application of the invention, including 
commitments contained in any plan submitted in support 
of its request for a license, and the licensee cannot other-
wise demonstrate to the satisfaction of the Federal agency 
that it has taken, or can be expected to take within a 
reasonable time, effective steps to achieve practical applica-
tion of the invention; 
"(B) the licensee is in breach of an agreement described 
in subsection (b); 
"(C) termination is necessary to meet requirements 
for public use specified by Federal regulations issued after 
the date of the license, and such requirements are not 
reasonably satisfied by the licensee; or 
"(D) the licensee has been found by a court of com-
petent jurisdiction to have violated the Federal antitrust 
laws in connection with its performance under the license 
agreement. 
"(e) PUBLIC NOTICE.—No exclusive or partially exclusive license 
may be granted under section 207(a)(2) unless public notice of 
the intention to grant an exclusive or partially exclusive license 
on a federally owned invention has been provided in an appropriate 
manner at least 15 days before the license is granted, and the 
Federal agency has considered all comments received before the 
end of the comment period in response to that public notice. This 
subsection shall not apply to the licensing of inventions made 
under a cooperative research and development agreement entered 
into under section 12 of the Stevenson-Wydler Technology Innova-
tion Act of 1980 (15 U.S.C. 3710a). 
"(f) PLAN.—No Federal agency shall grant any license under 
a patent or patent application on a federally owned invention unless 
the person requesting the license has supplied the agency with 
a plan for development or marketing of the invention, except that 
any such plan shall be treated by the Federal agency as commercial 
and financial information obtained from a person and privileged 
and confidential and not subject to disclosure under section 552 
of title 5 of the United States Code.". 
(b) CONFORMING AMENDMENT.—The item relating to section 
209 in the table of sections for chapter 18 of title 35, United 
States Code, is amended to read as follows: 
"209. Licensing federally owned inventions.". 
PUBLIC LAW 106-404—NOV. 1, 2000 
114 STAT. 1745 
SEC. 5. MODIFICATION OF STATEMENT OF POLICY AND OBJECTIVES 
FOR CHAPTER 18 OF TITLE 35, UNITED STATES CODE. 
Section 200 of title 35, United States Code, is amended by 
striking "enterprise;" and inserting "enterprise without unduly 
encumbering future research and discovery;" 
SEC. 6. TECHNICAL AMENDMENTS TO BAYH-DOLE ACT. 
Chapter 18 of title 35, United States Code (popularly known 
as the "Bayh-Dole Act"), is amended— 
(1) by amending section 202(e) to read as follows: 
"(e) In any case when a Federal employee is a coinventor 
of any invention made with a nonprofit organization, a small busi-
ness firm, or a non-Federal inventor, the Federal agency employing 
such coinventor may, for the purpose of consolidating rights in 
the invention and if it finds that it would expedite the development 
of the invention— 
"(1) license or assign whatever rights it may acquire in 
the subject invention to the nonprofit organization, small busi-
ness firm, or non-Federal inventor in accordance with the provi-
sions of this chapter; or 
"(2) acquire any rights in the subject invention from the 
nonprofit organization, small business firm, or non-Federal 
inventor, but only to the extent the party from whom the 
rights are acquired voluntarily enters into the transaction and 
no other transaction under this chapter is conditioned on such 
acquisition."; and 
(2) in section 207(a)— 
(A) by striking "patent applications, patents, or other 
forms of protection obtained" and inserting "inventions" 
in paragraph (2); and 
(B) by inserting ", including acquiring rights for and 
administering royalties to the Federal Government in any 
invention, but only to the extent the party from whom 
the rights are acquired voluntarily enters into the trans-
action, to facilitate the licensing of a federally owned inven-
tion" after "or through contract" in paragraph (3). 
SEC. 7. TECHNICAL AMENDMENTS TO THE STEVENSON-WYDLER TECH-
NOLOGY INNOVATION ACT OF 1980. 
The Stevenson-Wydler Technology Innovation Act of 1980 is 
amended— 
(1) in section 4(4) (15 U.S.C. 3703(4)), by striking "section 
6 or section 8" and inserting "section 7 or 9"; 
(2) in section 4(6) (15 U.S.C. 3703(6)), by striking "section 
6 or section 8" and inserting "section 7 or 9"; 
(3) in section 5(c)(ll) (15 U.S.C. 3704(c)(ll)), by striking 
"State of local governments" and inserting "State or local 
governments"; 
(4) in section 9 (15 U.S.C. 3707), by— 
(A) striking "section 6(a)" and inserting "section 7(a)"; 
(B) striking "section 6(b)" and inserting "section 7(b)"; 
and 
(C) striking "section 6(c)(3)" and inserting "section 
7(c)(3)"' 
(5) in section 11(e)(1) (15 U.S.C. 3710(e)(1)), by striking 
"in cooperation with Federal Laboratories" and inserting "in 
cooperation with Federal laboratories"; 
114 STAT. 1746 
PUBLIC LAW 106-404—NOV. 1, 2000 
15 u s e 3701a 
note. 
Deadline. 
Deadline. 
(6) in section ll(i) (15 U.S.C. 3710(i)), by striking "a gift 
under the section" and inserting "a gift under this section"; 
(7) in section 14 (15 U.S.C. 3710c)— 
(A) in subsection (a)(l)(A)(i), by inserting ", other than 
payments of patent costs as dehneated by a hcense or 
assignment agreement," after "or other payments"; 
(B) in subsection (a)(l)(A)(i), by inserting ", if the inven-
tor's or coinventor's rights are assigned to the United 
States" after "inventor or coinventors"; 
(C) in subsection (a)(1)(B), by striking "succeeding fiscal 
year" and inserting "2 succeeding fiscal years"; 
(D) in subsection (a)(2), by striking "Government-oper-
ated laboratories of the"; and 
(E) in subsection (b)(2), by striking "inventon" and 
inserting "invention"; and 
(8) in section 22 (15 U.S.C. 3714), by striking "sections 
11, 12, and 13" and inserting "sections 12, 13, and 14". 
SEC. 8. REVIEW OF COOPERATIVE RESEARCH AND DEVELOPMENT 
AGREEMENT PROCEDURES. 
(a) REVIEW.—^Within 90 days after the date of the enactment 
of this Act, each Federal agency with a federally funded laboratory 
that has in effect on that date of the enactment one or more 
cooperative research and development agreements under section 
12 of the Stevenson-Wydler Technology Innovation Act of 1980 
(15 U.S.C. 3710a) shall report to the Committee on National Secu-
rity of the National Science and Technology Council and the Con-
gress on the general policies and procedures used by that agency 
to gather and consider the views of other agencies on— 
(1) joint work statements under section 12(c)(5)(C) or (D) 
of the Stevenson-Wydler Technology Innovation Act of 1980 
(15 U.S.C. 3710a(c)(5)(C) or (D)); or 
(2) in the case of laboratories described in section 
12(d)(2)(A) of the Stevenson-Wydler Technology Innovation Act 
of 1980 (15 U.S.C. 3710a(d)(2)(A)), cooperative research and 
development agreements under such section 12, 
with respect to major proposed cooperative research and develop-
ment agreements that involve critical national security technology 
or may have a significant impact on domestic or international 
competitiveness. 
(b) PROCEDURES.—^Within 1 year after the date of the enactment 
of this Act, the Committee on National Security of the National 
Science and Technology Council, in conjunction with relevant Fed-
eral agencies and national laboratories, shall— 
(1) determine the adequacy of existing procedures and 
methods for interagency coordination and awareness with 
respect to cooperative research and development agreements 
described in subsection (a); and 
(2) establish 
and 
distribute 
to appropriate 
Federal 
agencies— 
(A) specific criteria to indicate the necessity for gath-
ering and considering the views of other agencies on joint 
work statements or cooperative research and development 
agreements as described in subsection (a); and 
(B) additional procedures, if any, for carrying out such 
gathering and considering of agency views with respect 
PUBLIC LAW 106-404—NOV. 1, 2000 
114 STAT. 1747 
to cooperative research and development 
agreements 
described in subsection (a). 
Procedures established under this subsection shall be designed to 
the extent possible to use or modify existing procedures, to minimize 
burdens on Federal agencies, to encourage industrial partnerships 
with national laboratories, and to minimize delay in the approval 
or disapproval of joint work statements and cooperative research 
and development agreements. 
(c) LIMITATION.—Nothing in this Act, nor any procedures estab-
lished under this section shall provide to the Office of Science 
and Technology Policy, the National Science and Technology 
Council, or any Federal agency the authority to disapprove a 
cooperative research and development agreement or joint work 
statement, under section 12 of the Stevenson-Wydler Technology 
Innovation Act of 1980 (15 U.S.C. 3710a), of another Federal agency. 
SEC. 9. INCREASED FLEXIBILITY FOR FEDERAL LABORATORY PART-
NERSHIP INTERMEDIARIES. 
Section 23 of the Stevenson-Wydler Technology Innovation Act 
of 1980 (15 U.S.C. 3715) is amended— 
(1) in subsection (a)(1) by inserting ", institutions of higher 
education as defined in section 1201(a) of the Higher Education 
Act of 1965 (20 U.S.C. 1141(a)), or educational institutions 
within the meaning of section 2194 of title 10, United States 
Code" after "small business firms"; and 
(2) in subsection (c) by inserting ", institutions of higher 
education as defined in section 1201(a) of the Higher Education 
Act of 1965 (20 U.S.C. 1141(a)), or educational institutions 
within the meaning of section 2194 of title 10, United States 
Code," after "small business firms". 
SEC. 10. REPORTS ON UTILIZATION OF FEDERAL TECHNOLOGY. 
(a) AGENCY ACTIVITIES.—Section 11 of the Stevenson-Wydler 
Technology Innovation Act of 1980 (15 U.S.C. 3710) is amended— 
(1) by striking the last sentence of subsection (b); 
(2) by inserting after subsection (e) the following: 
"(f) AGENCY REPORTS ON UTILIZATION.— 
"(1) IN GENERAL.—Each Federal agency which operates 
or directs one or more Federal laboratories or which conducts 
activities under sections 207 and 209 of title 35, United States 
Code, shall report annually to the Office of Management and 
Budget, as part of the agency's annual budget submission, 
on the activities performed by that agency and its Federal 
laboratories under the provisions of this section and of sections 
207 and 209 of title 35, United States Code. 
"(2) CONTENTS.—^The report shall include— 
"(A) an explanation of the agency's technology transfer 
' 
program for the preceding fiscal year and the agency's 
plans for conducting its technology transfer 
function, 
including its plans for securing intellectual property rights 
in laboratory innovations with commercial promise and 
plans for managing its intellectual property so as to 
advance the agency's mission and benefit the competitive-
ness of United States industry; and 
"(B) information on technology transfer activities for 
the preceding fiscal year, including— 
"(i) the number of patent applications filed; 
"(ii) the number of patents received; 
114 STAT. 1748 
PUBLIC LAW 106-404—NOV. 1, 2000 
"(iii) the number of fully-executed licenses which 
received royalty income in the preceding fiscal year, 
categorized by whether they are exclusive, partially-
exclusive, or non-exclusive, and the time elapsed from 
the date on which the license was requested by the 
licensee in writing to the date the license was executed; 
"(iv) the total earned royalty income including such 
statistical information as the total earned royalty 
income, of the top 1 percent, 5 percent, and 20 percent 
of the licenses, the range of royalty income, and the 
median, except where disclosure of such information 
would reveal the amount of royalty income associated 
with an individual license or licensee; 
"(v) what disposition was made of the income 
described in clause (iv); 
"(vi) the number of licenses terminated for cause; 
and 
"(vii) any other parameters or discussion that the 
agency deems relevant or unique to its practice of 
technology transfer. 
"(3) COPY TO SECRETARY; ATTORNEY GENERAL; CONGRESS.— 
The agency shall transmit a copy of the report to the Secretary 
of Commerce and the Attorney General for inclusion in the 
annual report to Congress and the President required by sub-
section (g)(2). 
"(4) PUBLIC AVAILABILITY.—Each Federal agency reporting 
under this subsection is also strongly encouraged to make the 
information contained in such report available to the public 
through Internet sites or other electronic means."; 
(3) by striking subsection (g)(2) and inserting the following: 
"(2) REPORTS.— 
"(A) ANNUAL REPORT REQUIRED.—The Secretary, in con-
sultation with the Attorney General and the Commissioner 
of Patents and Trademarks, shall submit each fiscal year, 
beginning 1 year after the enactment of the Technology 
Transfer Commercialization Act of 2000, a summary report 
to the President, the United States Trade Representative, 
and the Congress on the use by Federal agencies and 
the Secretary of the technology transfer authorities speci-
fied in this Act and in sections 207 and 209 of title 35, 
United States Code. 
"(B) CONTENT.—^The report shall— 
"(i) draw upon the reports prepared by the agencies 
under subsection (f); 
"(ii) discuss technology transfer best practices and 
effective approaches in the licensing and transfer of 
technology in the context of the agencies' missions; 
and 
"(iii) discuss the progress made toward develop-
ment of additional useful measures of the outcomes 
of technology transfer programs of Federal agencies. 
"(C) PUBLIC AVAILABILITY.—^The Secretary shall make 
the report available to the public through Internet sites 
or other electronic means."; and 
(4) by inserting after subsection (g) the following: 
"(h) DUPLICATION OF REPORTING.—^The reporting obligations 
imposed by this section— 
PUBLIC LAW 106-404—NOV. 1, 2000 
114 STAT. 1749 
"(1) are not intended to impose requirements that duplicate 
requirements imposed by the Government Performance and 
Results Act of 1993 (31 U.S.C. 1101 note); 
"(2) are to be implemented in coordination with the 
implementation of that Act; and 
"(3) are satisfied if an agency provided the information 
concerning technology transfer activities described in this sec-
tion in its annual submission under the Government Perform-
ance and Results Act of 1993 (31 U.S.C. 1101 note).", 
(b) ROYALTIES.—Section 14(c) of the Stevenson-Wydler Tech-
nology Innovation Act of 1980 (15 U.S.C. 3710c(c)) is amended 
to read as follows: 
"(c) REPORTS.—^The Comptroller General shall transmit a report 
to the appropriate committees of the Senate and House of Rep-
resentatives on the effectiveness of Federal technology transfer 
programs, including findings, conclusions, and recommendations 
for improvements in such programs. The report shall be integrated 
with, and submitted at the same time as, the report required 
by section 202(b)(3) of title 35, United States Code.". 
SEC. 11. TECHNOLOGY PARTNERSHIPS OMBUDSMAN. 
42 USC 7261c. 
(a) APPOINTMENT OF OMBUDSMAN.—^The Secretary of Energy 
shall direct the director of each national laboratory of the Depart-
ment of Energy, and may direct the director of each facility under 
the jurisdiction of the Department of Energy, to appoint a tech-
nology partnership ombudsman to hear and help resolve complaints 
from outside organizations regarding the policies and actions of 
each such laboratory or facility with respect to technology partner-
ships (including cooperative research and development agreements), 
patents, and technology licensing. 
(b) QUALIFICATIONS.—^An ombudsman appointed under sub-
section (a) shall be a senior official of the national laboratory 
or facility who is not involved in day-to-day technology partnerships, 
patents, or technology licensing, or, if appointed from outside the 
laboratory or facility, function as such a senior official. 
(c) DUTIES.—Each ombudsman appointed under subsection (a) 
shall— 
(1) serve as the focal point for assisting the public and 
industry in resolving complaints and disputes with the national 
laboratory or facility regarding technology partnerships, pat-
ents, and technology licensing; 
(2) promote the use of collaborative alternative dispute 
resolution techniques such as mediation to facilitate the speedy 
and low-cost resolution of complaints and disputes, when appro-
priate; and 
(3) report quarterly on the number and nature of com-
plaints and disputes raised, along with the ombudsman's 
assessment of their resolution, consistent with the protection 
of confidential and sensitive information, to— 
(A) the Secretary; 
(B) the Administrator for Nuclear Security; 
(C) the Director of the Office of Dispute Resolution 
of the Department of Energy; and 
(D) the employees of the Department responsible for 
the administration of the contract for the operation of 
each national laboratory or facility that is a subject of 
114 STAT. 1750 
PUBLIC LAW 106-404—NOV. 1, 2000 
the report, for consideration in the administration and 
review of that contract. 
Approved November 1, 2000. 
LEGISLATIVE HISTORY—H.R. 209: 
HOUSE REPORTS: No. 106-129, Pt. 1 (Comm. on Science). 
CONGRESSIONAL RECORD: 
Vol. 145 (1999): May 11, considered and passed House. 
Vol. 146 (2000): Oct. 5, considered and passed Senate, amended. 
Oct. 17, House concurred in Senate amendment. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 36 (2000): 
Nov. 1, Presidential statement.