Federal Technology Transfer Act of 1986
PL 99-502 (H.R.3773), enacted 10/20/1986

PUBLIC LAW 99-502—OCT. 20, 1986 
100 STAT. 1785 
Public Law 99-502 
99th Congress 
An Act 
To amend the Stevenson-Wydler Technology Innovation Act of 1980 to promote 
technology transfer by authorizing Government-operated laboratories to enter into 
cooperative research agreements and by establishing a Federal Laboratory Consor-
tium for Technology Transfer within the National Bureau of Standards, and for 
other purposes. 
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 "Federal Technology Transfer Act of 
1986". 
SEC. 
2
. 
COOPERATIVE 
RESEARCH 
AND 
DEVELOPMENT 
AGREEMENTS. 
The Stevenson-Wydler Technology Innovation Act of 1980 is 
amended by redesignating sections 12 through 15 as sections 16 
through 19, and by inserting immediately after section 11 the 
following: 
"SEC. 
1
2
. COOPERATIVE 
RESEARCH 
AND 
DEVELOPMENT 
AGREEMENTS. 
"(a) GENERAL AUTHORITY.—Each Federal agency may permit the 
director of any of its Government-operated Federal laboratories— 
"(1) to enter into cooperative research and development 
agreements on behalf of such agency (subject to subsection (c) of 
this section) with other Federal agencies; units of State or local 
government; industrial organizations (including corporations, 
partnerships, and limited partnerships, and industrial develop-
ment organizations); public and private foundations; nonprofit 
organizations (including universities); or other persons (includ-
ing licensees of inventions owned by the Federal agency); and 
"(2) to negotiate licensing agreements under section 207 of 
title 35, United States Code, or under other authorities for 
Government-owned inventions made at the laboratory and 
other inventions of Federal employees that may be voluntarily 
assigned to the Government. 
"(b) ENUMERATED AUTHORITY.—Under agreements entered into 
pursuant to subsection (a)(1), a Government-operated Federal lab-
oratory may (subject to subsection (c) of this section)— 
"(1) accept, retain, and use funds, personnel, services, and 
property from collaborating parties and provide personnel, serv-
ices, and property to collaborating parties; 
"(2) grant or agree to grant in advance, to a collaborating 
party, patent licenses or assignments, or options thereto, in 
any invention made in whole or in part by a Federal em-
ployee under 
the agreement, 
retaining 
a 
nonexclusive, 
nontransferrable, irrevocable, paid-up license to practice the 
invention or have the invention practiced throughout the world 
by or on behalf of the Government and such other rights as the 
Federal laboratory deems appropriate; and 
Oct. 20, 1986 
[H.R. 3773] 
Federal 
Technology 
Transfer Act of 
1986. 
Commerce and 
trade. 
Government 
organization and 
employees. 
15 u s e 3701 
note. 
15 u s e 3701 
note. 
15 use 
3711-3714. 
15 u s e 3710a. 
State and local 
governments. 
Business and 
industry. 
Schools and 
colleges. 
Patents and 
trademarks. 
100 STAT. 1786 
PUBLIC LAW 99-502—OCT. 20, 1986 
Regulations. 
Small business. 
Business and 
industry. 
International 
agreements. 
"(3) waive, subject to reservation by the Government of a 
nonexclusive, irrevocable, paid-up license to practice the inven-
tion or have the invention practiced throughout the world by or 
on behalf of the Government, 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; and 
"(4) to the extent consistent with any applicable agency 
requirements and standards of conduct, permit employees or 
former employees of the laboratory to participate in efforts to 
commercialize inventions they made while in the service of the 
United States. 
"(c) CONTRACT CONSIDERATIONS.—(1) A Federal agency may issue 
regulations on suitable procedures for implementing the provisions 
of this section; however, implementation of this section shall not be 
delayed until issuance of such regulations. 
"(2) The agency in permitting a Federal laboratory to enter into 
agreements under this section shall be guided by the purposes of 
this Act. 
"(3){A) Any agency using the authority given it under subsection 
(a) shall review employee standards of conduct for resolving poten-
tial conflicts of interest to make sure they adequately establish 
guidelines for situations likely to arise through the use of this 
authority, including but not limited to cases where present or 
former employees or their partners negotiate licenses or assign-
ments of titles to inventions or negotiate cooperative research and 
development agreements with Federal agencies (including the 
agency with which the employee involved is or was formerly 
employed). 
"(B) If, in implementing subparagraph (A), an agency is unable to 
resolve potential conflicts of interest within its current statutory 
framework, it shall propose necessary statutory changes to be for-
warded to its authorizing committees in Congress. 
"(4) The laboratory director in deciding what cooperative research 
and development agreements to enter into shall— 
"(A) give special consideration to small business firms, and 
consortia involving small business firms; and 
"(B) give preference to business units located in the United 
States which agree that products embodying inventions made 
under the cooperative research and development agreement or 
produced through the use of such inventions will be manufac-
tured substantially in the United States and, in the case of any 
industrial organization or other person subject to the control of 
a foreign company or government, as appropriate, take into 
consideration whether or not such foreign government permits 
United States agencies, organizations, or other persons to enter 
into cooperative research and development agreements and 
licensing agreements. 
"(5)(A) If the head of the agency or his designee desires an 
opportunity to disapprove or require the modification of any such 
agreement, the agreement shall provide a 30-day period within 
which such action must be taken beginning on the date the agree-
ment is presented to him or her by the head of the laboratory 
concerned. 
"(B) In any case in which the head of an agency or his designee 
disapproves or requires the modification of an agreement presented 
under this section, the head of the agency or such designee shall 
PUBLIC LAW 99-502—OCT. 20, 1986 
100 STAT. 1787 
transmit a written explanation of such disapproval or modification 
to the head of the laboratory concerned. 
"(6) Each agency shall maintain a record of all agreements en- 
Records, 
tered into under this section. 
"(d) DEFINITION.—As used in this section— 
"(1) the term 'cooperative research and development agree-
ment' means any agreement between one or more Federal 
laboratories and one or more non-Federal parties under which 
the Government, through its laboratories, provides personnel, 
services, facilities, equipment, or other resources with or with-
out reimbursement (but not funds to non-Federal parties) and 
the non-Federal parties provide funds, personnel, services, 
facilities, equipment, or other resources toward the conduct of 
specified research or development efforts which are consistent 
with the missions of the laboratory; except that such term does 
not include a procurement contract or cooperative agreement as 
those terms are used in sections 6303, 6304, and 6305 of title 31, 
United States Code; and 
"(2) the term 'laboratory' means a facility or group of facili-
ties owned, leased, or otherwise used by a Federal agency, a 
substantial purpose of which is the performance of research, 
development, or engineering by employees of the Federal 
Government. 
"(e) DETERMINATION OF LABORATORY MISSIONS.—For purposes of 
this section, an agency shall make separate determinations of the 
mission or missions of each of its laboratories. 
"(f) RELATIONSHIP TO OTHER LAWS.—Nothing in this section is 
intended to limit or diminish existing authorities of any agency.". 
SEC. 3. ESTABLISHMENT OF FEDERAL LABORATORY CONSORTIUM FOR 
TECHNOLOGY TRANSFER. 
Section 11 of the Stevenson-Wydler Technology Innovation Act of 
1980 (15 U.S.C. 3710) is amended— 
Post, p. 1791. 
(1) by redesignating subsection (e) as subsection (f); and 
(2) by inserting after subsection (d) the following: 
"(e) ESTABLISHMENT OF FEDERAL LABORATORY CONSORTIUM FOR 
TECHNOLOGY TRANSFER.—(1) There is hereby established the Federal 
Laboratory Consortium for Technology Transfer (hereinafter re-
ferred to as the 'Consortium') which, in cooperation with Federal 
Laboratories and the private sector, shall— 
"(A) develop and (with the consent of the Federal laboratory 
concerned) administer techniques, training courses, and mate-
rials concerning technology transfer to increase the awareness 
of Federal laboratory employees regarding the commercial 
potential of laboratory technology and innovations; 
"(B) furnish advice and assistance requested by Federal agen-
cies and laboratories for use in their technology transfer pro-
grams (including the planning of seminars for small business 
and other industry); 
"(C) provide a clearinghouse for requests, received at the 
laboratory level, for technical assistance from States and units 
of local governments, businesses, industrial 
development 
organizations, not-for-profit organizations including univer-
sities. Federal agencies and laboratories, and other persons, 
and— 
"(i) to the extent that such requests can be responded to 
with published information available to the National Tech-
100 STAT. 1788 
PUBLIC LAW 99-502—OCT. 20, 1986 
nical Information Service, refer such requests to that Serv-
ice, and 
"(ii) otherwise refer these requests to the appropriate 
Federal laboratories and agencies; 
"(D) facilitate communication and coordination between 
Offices of Research and Technology Applications of Federal 
laboratories; 
"(E) utilize (with the consent of the agency involved) the 
expertise and services of the National Science Foundation, the 
Department of Commerce, the National Aeronautics and Space 
Administration, and other Federal agencies, as necessary; 
"(F) with the consent of any Federal laboratory, facilitate the 
use by such laboratory of appropriate technology transfer 
mechanisms such as personnel exchanges and computer-based 
systems; 
"(G) with the consent of any Federal laboratory, assist such 
laboratory to establish programs using technical volunteers to 
provide technical assistance to communities related to such 
laboratory; 
"(H) facilitate communication and cooperation between Of-
fices of Research and Technology Applications of Federal lab-
oratories and regional, State, and local technology transfer 
organizations; 
"(I) when requested, assist colleges or universities, businesses, 
nonprofit organizations, State or local governments, or regional 
organizations to establish programs to stimulate research and 
to encourage technology transfer in such areas as technology 
program development, curriculum design, long-term research 
planning, personnel needs projections, and productivity assess-
ments; and 
"(J) seek advice in each Federal laboratory consortium region 
from representatives of State and local governments, large and 
small business, universities, and other appropriate persons on 
the effectiveness of the program (and any such advice shall be 
provided at no expense to the Government). 
"(2) The membership of the Consortium shall consist of the Fed-
eral laboratories described in clause (1) of subsection (b) and such 
other laboratories as may choose to join the Consortium. The rep-
resentatives to the Consortium shall include a senior staff member 
of each Federal laboratory which is a member of the Consortium 
and a representative appointed from each Federal agency with one 
or more member laboratories. 
"(3) The representatives to the Consortium shall elect a Chairman 
of the Consortium. 
"(4) The Director of the National Bureau of Standards shall 
provide the Consortium, on a reimbursable basis, with administra-
tive services, such as office space, personnel, and support services of 
the Bureau, as requested by the Consortium and approved by such 
Director. 
"(5) Each Federal laboratory or agency shall transfer technology 
directly to users or representatives of users, and shall not transfer 
technology directly to the Consortium. Each Federal laboratory 
shall conduct and transfer technology only in accordance with the 
practices and policies of the Federal agency which owns, leases, or 
otherwise uses such Federal laboratory. 
Reports. 
"(6) Not later than one year after the date of the enactment of this 
subsection, and every year thereafter, the Chairman of the Consor-
PUBLIC LAW 99-502—OCT. 20, 1986 
100 STAT. 1789 
tium shall submit a report to the President, to the appropriate 
authorization and appropriation committees of both Houses of the 
Congress, and to each agency with respect to which a transfer of 
funding is made (for the fiscal year or years involved) under para-
graph (7), concerning the activities of the Consortium and the 
expenditures made by it under this subsection during the year for 
which the report is made. 
"(7)(A) Subject to subparagraph (B), an amount equal to 0.005 
percent of that portion of the research and development budget of 
each Federal agency that is to be utilized by the laboratories of such 
agency for a fiscal year referred to in subparagraph (B)(ii) shall be 
transferred by such agency to the National Bureau of Standards at 
the beginning of the fiscal year involved. Amounts so transferred 
shall be provided by the Bureau to the Consortium for the purpose 
of carrying out activities of the Consortium under this subsection. 
"(B) A transfer shall be made by any Federal agency under 
subparagraph (A), for any fiscal year, only i
f
— 
"(i) the amount so transferred by that agency (as determined 
under such subparagraph) would exceed $10,000; and 
"(ii) such transfer is made with respect to the fiscal year 1987, 
1988,1989,1990, or 1991. 
"(C) The heads of Federal agencies and their designees, and the 
directors of Federal laboratories, may provide such additional sup-
port for operations of the Consortium as they deem appropriate. 
"(8)(A) The Consortium shall use 5 percent of the funds provided 
in paragraph (7)(A) to establish demonstration projects in tech-
nology transfer. To carry out such projects, the Consortium may 
arrange for grants or awards to, or enter into agreements with, 
nonprofit State, local, or private organizations or entities whose 
primary purposes are to facilitate cooperative research between the 
Federal laboratories and organizations not associated with the Fed-
eral laboratories, to transfer technology from the Federal labora-
tories, and to advance State and local economic activity. 
"(B) The demonstration projects established under subparagraph 
(A) shall serve as model programs. Such projects shall be designed to 
develop programs and mechanisms for technology transfer from the 
Federal laboratories which may be utilized by the States and which 
will enhance Federal, State, and local programs for the transfer of 
technology. 
"(C) Application for such grants, awards, or agreements shall be 
in such form and contain such information as the Consortium or its 
designee shall specify. 
"(D) Any person who receives or utilizes any proceeds of a grant or Records, 
award made, or agreement entered into, under this paragraph shall 
keep such records as the Consortium or its designee shall determine 
are necessary and appropriate to facilitate effective audit and 
evaluation, including records which fully disclose the amount and 
disposition of such proceeds and the total cost of the project in 
connection with which such proceeds were used.". 
SEC. 4. UTILIZATION OF FEDERAL TECHNOLOGY. 
(a) RESPONSIBIUTY FOR TECHNOLOGY TRANSFER.—Section 11(a) of 
the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C 
3710(a)) is amended— 
(1) by inserting "(1)" after "POLICY.—"; and 
(2) by adding at the end thereof the following new 
paragraphs: 
100 STAT. 1790 
PUBLIC LAW 99-502—OCT. 20, 1986 
(2) Technology transfer, consistent with mission responsibil-
ities, is a responsibility of each laboratory science and engineering 
professional. 
"(3) Each laboratory director shall ensure that efforts to transfer 
technology are considered positively in laboratory job descriptions, 
employee promotion policies, and evaluation of the job performance 
of scientists and engineers in the laboratory.". 
(b) RESEARCH AND TECHNOLOGY APPLICATIONS OFFICES.—(1) Section 
11(b) of such Act (15 U.S.C. 3710(b)) is amended— 
(A) by striking out "a total annual budget exceeding 
$20,000,000 shall provide at least one professional individual 
full-time" and inserting in lieu thereof "200 or more full-time 
equivalent scientific, engineering, and related technical posi-
tions shall provide one or more full-time equivalent positions"; 
(B) by inserting immediately before the next to last sentence 
the following new sentence: "Furthermore, individuals filling 
positions in an Office of Research and Technology Applications 
shall be included in the overall laboratory/agency management 
development program so as to ensure that highly competent 
technical managers are full participants in the technology 
transfer process."; 
(C) by striking out "requirements set forth in (1) and/or (2) of 
this subsection" in the next to last sentence and inserting in 
lieu thereof "requirement set forth in clause (2) of the preceding 
sentence"; and 
(D) by striking out "either requirement (1) or (2)" in the last 
sentence and inserting in lieu thereof "such requirement". 
(2) Section 11(c) of such Act (15 U.S.C. 3710(c)) is amended— 
(A) by striking out paragraph (1) and inserting in lieu thereof 
the following: 
"(1) to prepare application assessments for selected research 
and development projects in which that laboratory is engaged 
and which in the opinion of the laboratory may have potential 
commercial applications;"; 
(B) by striking out "the Center for the Utilization of Federal 
Technology" in paragraph (3) and inserting in lieu thereof "the 
National Technical Information Service, the Federal Labora-
tory Consortium for Technology Transfer,", and by striking out 
"and" after the semicolon; 
(C) by striking out "in response to requests from State and 
local government officials." in paragraph (4) and inserting in 
lieu thereof "to State and local government officials; and"; and 
(D) by inserting immediately after paragraph (4) the following 
new paragraph: 
State and local 
"(5) to participate, where feasible, in regional, State, and local 
governments. 
programs designed to facilitate or stimulate the transfer of 
technology for the benefit of the region. State, or local jurisdic-
tion in which the Federal laboratory is located." 
(c) DISSEMINATION OF TECHNICAL INFORMATION.—Section 11(d) 
of 
such Act (15 U.S.C. 3710(d)) is amended— 
(1) by striking out "(d)" and all that follows down through 
"shall—" and inserting in lieu thereof the following: 
(d) DISSEMINATION OF TECHNICAL INFORMATION.—The National 
Technical Information Service shall—"; 
(2) by striking out paragraph (2); 
(3) by striking out "existing" in paragraph (3), and redesignat-
ing such paragraph as paragraph (2); 
PUBLIC LAW 99-502—OCT. 20, 1986 
100 STAT. 1791 
(4) by striking out paragraph (4) and inserting in lieu thereof 
the following: 
"(3) receive requests for technical assistance from State and 
local governments, respond to such requests with published 
information available to the Service, and refer such requests to 
the Federal Laboratory Consortium for Technology Transfer to 
the extent that such requests require a response involving more 
than the published information available to the Service;"; 
(5) by redesignating paragraphs (5) and (6) as paragraphs (4) 
and (5), respectively; and 
(6) by striking out "(c)(4)" in paragraph (4) as so redesignated 
and inserting in lieu thereof "(c)(3)". 
(d) AGENCY REPORTING.—Section U(f) of such Act (15 U.S.C. 
3710(e)) (as redesignated by section 3(1) of this Act) is amended— 
(1) by striking out "prepare biennially a report summarizing 
the activities" in the first sentence and inserting in lieu thereof 
"report annually to the Congress, as part of the agency's annual 
budget submission, on the activities"; and 
(2) by striking out the second sentence. 
SEC. 5. FUNCTIONS OF THE SECRETARY OF COMMERCE. 
Section 11 of the Stevenson-Wydler Technology Innovation Act of 
1980 (as amended by the preceding provisions of this Act) is further 
amended by adding at the end thereof the following new subsection: 
"(g) FUNCTIONS OF THE SECRETARY.—(1) The Secretary, in consulta-
tion with other Federal agencies, may— 
"(A) make available to interested agencies the expertise of the 
Department of Commerce regarding the commercial potential of 
inventions and methods and options for commercialization 
which are available to the Federal laboratories, including re-
search and development limited partnerships; 
"(B) develop and disseminate to appropriate agency and lab-
oratory personnel model provisions for use on a voluntary basis 
in cooperative research and development arrangements; and 
"(C) furnish advice and assistance, upon request, to Federal 
agencies concerning their cooperative research and develop-
ment programs and projects. 
"(2) Two years after the date of the enactment of this subsection 
and every two years thereafter, the Secretary shall submit a sum-
mary report to the President and the Congress on the use by the 
agencies and the Secretary of the authorities specified in this Act. 
Other Federal agencies shall cooperate in the report's preparation. 
"(3) Not later than one year after the date of the enactment of the 
Federal Technology Transfer Act of 1986, the Secretary shall submit 
to the President and the Congress a report regarding— 
"(A) any copyright provisions or other types of barriers which 
tend to restrict or limit the transfer of federally funded com-
puter software to the private sector and to State and local 
governments, and agencies of such State and local governments; 
and 
"(B) the feasibility and cost of compiling and maintaining a 
current and comprehensive inventory of all federally funded 
training software.". 
State and local 
governments. 
Reports. 
15 u s e 3710. 
Reports. 
Reports. 
Copyrights. 
State and local 
governments. 
100 STAT. 1792 
PUBLIC LAW 99-502—OCT. 20, 1986 
15 use 3710b. 
15 use 3710c. 
Effective date. 
Federal 
Register, 
publication. 
Regulations. 
SEC. 6. REWARDS FOR SCIENTIFIC, ENGINEERING, AND TECHNICAL 
PERSONNEL OR FEDERAL AGENCIES. 
The Stevenson-Wydler Technology Innovation Act of 1980 (as 
amended by the preceding provisions of this Act) is further amended 
by inserting after section 12 the following new section: 
"SEC. 13. REWARDS FOR SCIENTIFIC, ENGINEERING, AND TECHNICAL 
PERSONNEL OF FEDERAL AGENCIES. 
"The head of each Federal agency that is making expenditures at 
a rate of more than $50,000,000 per fiscal year for research and 
development in its Government-operated laboratories shall use the 
appropriate statutory authority to develop and implement a cash 
awards program to reward its scientific, engineering, and technical 
personnel for— 
"(1) inventions, innovations, or other outstanding scientific or 
technological contributions of value to the United States due to 
commercial application or due to contributions to missions of 
the Federal agency or the Federal government, or 
"(2) exemplary activities that promote the domestic transfer 
of science and technology development within the Federal 
Government and result in utilization of such science and tech-
nology by American industry or business, universities, State or 
local governments, or other non-Federal parties.". 
SEC. 7. DISTRIBUTION OF ROYALTIES RECEIVED BY FEDERAL AGENCIES. 
The Stevenson-Wydler Technology Innovation Act of 1980 (as 
amended by the preceding provisions of this Act) is further amended 
by inserting after section 13 the following new section: 
"SEC. 14. DISTRIBUTION 
OF 
ROYALTIES 
RECEIVED 
BY 
FEDERAL 
AGENCIES. 
"(a) IN GENERAL.—(1) Except as provided in paragraphs (2) and (4), 
any royalties or other income received by a Federal agency from the 
licensing or assignment of inventions under agreements entered 
into under section 12, and inventions of Government-operated Fed-
eral laboratories licensed under section 207 of title 35, United States 
Code, or under any other provision of law, shall be retained by the 
agency whose laboratory produced the invention and shall be dis-
posed of as follows: 
"(A)(i) The head of the agency or his designee shall pay at least 15 
percent of the royalties or other income the agency receives on 
account of any invention to the inventor (or co-inventors) if the 
inventor (or each such co-inventor) was an employee of the agency at 
the time the invention was made. This clause shall take effect on the 
date of the enactment of this section unless the agency publishes a 
notice in the Federal Register within 90 days of such date indicating 
its election to file a Notice of Proposed Rulemaking pursuant to 
clause (ii). 
"(ii) An agency may promulgate, in accordance with section 553 of 
title 5, United States Code, regulations providing for an alternative 
program for sharing royalties with inventors who were employed by 
the agency at the time the invention was made and whose names 
appear on licensed inventions. Such regulations must— 
"(I) guarantee a fixed minimum payment to each such inven-
tor, each year that the agency receives royalties from that 
inventor's invention; 
PUBLIC LAW 99-502—OCT. 20, 1986 
100 STAT. 1793 
"(11) provide a percentage royalty share to each such inventor, 
each year that the agency receives royalties from that inven-
tor's invention in excess of a threshold amount; 
"(III) provide that total payments to all such inventors shall 
exceed 15 percent of total agency royalties in any given fiscal 
year; and 
"(IV) provide appropriate incentives from royalties for those 
laboratory employees who contribute substantially to the tech-
nical development of a licensed invention between the time of 
the filing of the patent application and the licensing of the 
invention, 
"(iii) An agency that has published its intention to promulgate 
regulations under clause (ii) may elect not to pay inventors under 
clause (i) until the expiration of two years after the date of the 
enactment of this Act or until the date of the promulgation of such 
regulations, whichever is earlier. If an agency makes such an elec-
tion and after two years the regulations have not been promulgated, 
the agency shall make payments (in accordance with clause (i)) of at 
least 15 percent of the royalties involved, retroactive to the date of 
the enactment of this Act. If promulgation of the regulations occurs 
within two years after the date of the enactment of this Act, 
payments shall be made in accordance with such regulations, retro-
active to the date of the enactment of this Act. The agency shall 
retain its royalties until the inventor's portion is paid under either 
clause (i) or (ii). Such royalties shall not be transferred to the 
agency's Government-operated laboratories under subparagraph (B) 
and shall not revert to the Treasury pursuant to paragraph (2) as a 
result of any delay caused by rulemaking under this subparagraph, 
"(B) The balance of the royalties or other income shall be trans-
ferred by the agency to its Government-operated laboratories, with 
the majority share of the royalties or other income from any inven-
tion going to the laboratory where the invention occurred; and the 
funds so transferred to any such laboratory may be used or obligated 
by that laboratory during the fiscal year in which they are received 
or during the succeeding fiscal year— 
"(i) for payment of expenses incidental to the administration 
and licensing of inventions by that laboratory or by the agency 
with respect to inventions which occurred at that laboratory, 
including the fees or other costs for the services of other agen-
cies, persons, or organizations for invention management and 
licensing services; 
"(ii) to reward scientific, engineering, and technical employ-
ees of that laboratory; 
"(iii) to further scientific exchange among the Government-
operated laboratories of the agency; or 
"(iv) for education and training of employees consistent with 
the research and development mission and objectives of the 
agency, and for other activities that increase the licensing 
potential for transfer of the technology of the Government-
operated laboratories of the agency. 
Any of such funds not so used or obligated by the end of the fiscal 
year succeeding the fiscal year in which they are received shall be 
paid into the Treasury of the United States. 
"(2) If, after payments to inventors under paragraph (1), the 
royalties received by an agency in any fiscal year exceed 5 percent of 
the budget of the Government-operated laboratories of the agency 
for that year, 75 percent of such excess shall be paid to the Treasury 
100 STAT. 1794 
PUBLIC LAW 99-502—OCT. 20, 1986 
Wages. 
Patents and 
trademarks. 
Business and 
industry. 
15 u s e 3710d. 
of the United States and the remaining 25 percent may be used or 
obligated for the purposes described in clauses (i) through (iv) of 
paragraph (1)(B) during that fiscal year or the succeeding fiscal year. 
Any funds not so used or obligated shall be paid into the Treasury of 
the United States. 
"(3) Any payment made to an employee under this section shall be 
in addition to the regular pay of the employee and to any other 
awards made to the employee, and shall not affect the entitlement 
of the employee to any regular pay, annuity, or award to which he is 
otherwise entitled or for which he is otherwise eligible or limit the 
amount thereof. Any payment made to an inventor as such shall 
continue after the inventor leaves the laboratory or agency. Pay-
ments made under this section shall not exceed $100,000 per year to 
any one person, unless the President approves a larger award (with 
the excess over $100,000 being treated as a Presidential award under 
section 4504 of title 5, United States Code). 
"(4) A Federal agency receiving royalties or other income as a 
result of invention management services performed for another 
Federal agency or laboratory under section 207 of title 35, United 
States Code, shall retain such royalties or income to the extent 
required to offset the payment of royalties to inventors under clause 
(i) of paragraph (1)(A), costs and expenses incurred under clause (i) of 
paragraph (1)(B), and the cost of foreign patenting and maintenance 
for such invention performed at the request of the other agency or 
laboratory. All royalties and other income remaining after payment 
of the royalties, costs, and expenses described in the preceding 
sentence shall be transferred to the agency for which the services 
were performed, for distribution in accordance with clauses (i) 
through (iv) of paragraph (1)(B). 
"(b) CERTAIN ASSIGNMENTS.—If the invention involved was one 
assigned to the Federal agency— 
"(1) by a contractor, grantee, or participant in a cooperative 
agreement with the agency, or 
"(2) by an employee of the agency who was not working in the 
laboratory at the time the inventon was made, 
the agency unit that was involved in such assignment shall be 
considered to be a laboratory for purposes of this section. 
"(c) REPORTS.—(1) In making their annual budget submissions 
Federal agencies shall submit, to the appropriate authorization and 
appropriation committees of both Houses of the Congress, sum-
maries of the amount of royalties or other income received and 
expenditures made (including inventor awards) under this section. 
"(2) The Comptroller General, five years after the date of the 
enactment of this section, shall review the effectiveness of the 
various royalty-sharing programs established under this section and 
report to the appropriate committees of the House of Representa-
tives and the Senate, in a timely manner, his findings, conclusions, 
and recommendations for improvements in such programs.". 
SEC. 8. EMPLOYEE ACTIVITIES. 
The Stevenson-Wydler Technology Innovation Act of 1980 (as 
amended by the preceding provisions of this Act) is further amended 
by inserting after section 14 the following new section: 
"SEC. 15. EMPLOYEE ACTIVITIES. 
"(a) IN GENERAL.—If a Federal agency which has the right of 
ownership to an invention under this Act does not intend to file for 
PUBLIC LAW 99-502—OCT. 20, 1986 
100 STAT. 1795 
a patent application or otherwise to promote commercialization of 
such invention, the agency shall allow the inventor, if the inventor 
is a Government employee or former employee who made the inven-
tion during the course of employment with the Government, to 
retain title to the invention (subject to reservation by the Govern-
ment of a nonexclusive, nontransferrable, irrevocable, paid-up 
license to practice the invention or have the invention practiced 
throughout the world by or on behalf of the Government). In 
addition, the agency may condition the inventor's right to title on 
the timely filing of a patent application in cases when the Govern-
ment determines that it has or may have a need to practice the 
invention. 
"(b) DEFINITION.—For purposes of this section, Federal employees 
include 'special Government employees' as defined in section 202 of 
title 18, United States Code. 
"(c) RELATIONSHIP TO OTHER LAWS.—Nothing in this section is 
intended to limit or diminish existing authorities of any agency.". 
SEC. 9. MISCELLANEOUS AND CONFORMING AMENDMENTS. 
(a) REPEAL OF NATIONAL INDUSTRIAL TECHNOLOGY BOARD.—Section 
10 of the Stevenson-Wydler Technology Innovation Act of 1980 (15 
U.S.C. 3709) is repealed. 
(b) CHANGES IN TERMINOLOGY OR ADMINISTRATIVE STRUCTURE.—(1) 
Section 3(2) of the Stevenson-Wydler Technology Innovation Act of 
1980 is amended by striking out "centers for industrial technology" 
15 USC 3702. 
and inserting in lieu thereof "cooperative research centers". 
(2) Section 4 of such Act is amended— 
15 USC 3703. 
(A) by striking out "Industrial Technology" in paragraph (1) 
and inserting in lieu thereof "Productivity, Technology, and 
Innovation"; 
(B) by striking out " 'Director' means the Director of the 
Office of Industrial Technology" in paragraph (3) and inserting 
in lieu thereof " 'Assistant Secretary' means the Assistant Sec-
retary for Productivity, Technology, and Innovation"; 
(C) by striking out "Centers for Industrial Technology" in 
paragraph (4) and inserting in lieu thereof "Cooperative 
Research Centers"; 
(D) by striking out paragraph (6), and redesignating para-
graphs (7) and (8) as paragraphs (6) and (7), respectively; and 
(E) by striking out "owned and funded" in paragraph (6) as so 
redesignated and inserting in lieu thereof "owned, leased, or 
otherwise used by a Federal agency and funded". 
(3) Section 5(a) of such Act is amended by striking out "Industrial 
15 USC 3704. 
Technology" and inserting in lieu thereof "Productivity, Tech-
nology, and Innovation". 
(4) Section 5(b) of such Act is amended by striking out "DIRECTOR" 
and inserting in lieu thereof "ASSISTANT SECRETARY", and by strik-
ing out "a Director of the Office" and all that follows and inserting 
in lieu thereof "an Assistant Secretary for Productivity, Technology, 
' 
and Innovation.". 
(5) Section 5(c) of such Act is amended— 
(A) by striking out "the Director" each place it appears and 
inserting in lieu thereof "the Assistant Secretary"; 
(B) by redesignating paragraphs (7) and (8) as paragraphs (9) 
and (10), respectively; and 
(C) by inserting immediately after paragraph (6) the following 
new paragraphs: 
100 STAT. 1796 
PUBLIC LAW 99-502—OCT. 20, 1986 
"(7) encourage and assist the creation of centers and other 
joint initiatives by State of local governments, regional 
organizations, 
private 
businesses, 
institutions 
of 
higher 
education, nonprofit organizations, or Federal laboratories to 
encourage technology transfer, to stimulate innovation, and to 
promote an appropriate climate for investment in technology-
related industries; 
"(8) propose and encourage cooperative research involving 
appropriate Federal entities. State or local governments, re-
gional 
organizations, 
colleges 
or 
universities, 
nonprofit 
organizations, or private industry to promote the common use of 
resources, to improve training programs and curricula, to 
stimulate interest in high technology careers, and to encourage 
the effective dissemination of technology skills within the wider 
community;". 
15 use 3705. 
(6) The heading of section 6 of such Act is amended to read as 
follows: 
"SEC. 6. COOPERATIVE RESEARCH CENTERS." 
(7) Section 6(a) of such Act is amended by striking out "Centers for 
Industrial Technology" and inserting in lieu thereof "Cooperative 
Research Centers". 
(8) Section 6(b)(1) of such Act is amended by striking out "basic 
and applied". 
(9) Section 6(e) of such Act is amended to read as follows: 
"(e) RESEARCH AND DEVELOPMENT UTILIZATION.—In the promotion 
of technology from research and development efforts by Centers 
35 use 200 et 
Under this section, chapter 18 of title 35, United States Code, shall 
seq. 
apply to the extent not inconsistent with this section.". 
(10) Section 6(f) of such Act is repealed. 
15 use 3707. 
(11) The heading of section 8 of such Act is amended by striking 
out "CENTERS FOR INDUSTRIAL TECHNOLOGY" and inserting in lieu 
thereof "COOPERATIVE RESEARCH CENTERS". 
(12) Section 8(a) of such Act is amended by striking out "Centers 
for Industrial Technology" and inserting in lieu thereof "Coopera-
tive Research Centers". 
15 use 3714. 
(13) Section 19 of such Act (as redesignated by section 2 of this 
Act) is amended by striking out "pursuant to this Act" and inserting 
in lieu thereof "pursuant to the provisions of this Act (other than 
sections 12,13, and 14)". 
(c) RELATED CONFORMING AMENDMENT.—Section 210 of title 35, 
United States Code, is amended by adding at the end thereof the 
following new subsection: 
"(e) The provisions of the Stevenson-Wydler Technology Innova-
Ante, p. 1785. 
tion Act of 1980, as amended by the Federal Technology Transfer 
Act of 1986, shall take precedence over the provisions of this chapter 
to the extent that they permit or require a disposition of rights in 
subject inventions which is inconsistent with this chapter.". 
15 use 3703. 
(d) ADDITIONAL DEFINITIONS.—Section 4 of such Act (as amended 
by subsection (b)(2) of this section) is further amended by adding at 
the end thereof the following new paragraphs: 
"(8) 'Federal agency' means any executive agency as defined 
in section 105 of title 5, United States Code, and the military 
departments as defined in section 102 of such title. 
"(9) 'Invention' means any invention or discovery which is or 
may be patentable or otherwise protected under title 35, United 
States Code, or any novel variety of plant which is or may be 
PUBLIC LAW 99-502—OCT. 20, 1986 
100 STAT. 1797 
protectable under the Plant Variety Protection Act (7 U.S.C. 
2321 et seq.). 
"(10) 'Made' when used in conjunction with any invention 
means the conception or first actual reduction to practice of 
such invention. 
"(11) 'Small business firm' means a small business concern as 
defined in section 2 of Public Law 85-536 (15 U.S.C. 632) and 
implementing regulations of the Administrator of the Small 
Business Administration. 
"(12) 'Training technology' means computer software and 
related materials which are developed by a Federal agency to 
train employees of such agency, including but not limited to 
software for computer-based instructional systems and for inter-
active video disc systems.". 
(e) REDESIGNATION OF SECTIONS TO REFLECT CHANGES MADE BY 
PRECEDING PROVISIONS.—(1) Such Act (as amended by the preceding 
provisions of this Act) is further amended by redesignating sections 
11 through 19 as sections 10 through 18, respectively. 
15 USC 
(2)(A) Section 5(d) of such Act is amended by inserting "(as then in 
^l^^r^I^}-. 
effect)" after "sections 5, 6, 8,11,12, and 13 of this Act". 
^^ USC 3704. 
(B) Section 8(a) of such Act is amended by striking out the last 
15 USC 3707. 
sentence. 
(C) Section 9(d) of such Act is amended by striking out "or 13" and 
15 USC 3708. 
inserting in lieu thereof "10,14, or 16". 
(3) Section 13(a)(1) of such Act (as redesignated by paragraph (1) of 
15 USC 37i0c. 
this subsection) is amended by striking out "section 12" in the 
matter preceding subparagraph (A) and inserting in lieu thereof 
"section 11". 
(4) Section 18 of such Act (as redesignated by paragraph (1) of this 
15 USC 3714. 
subsection) is amended by striking out "sections 12, 13, and 14" and 
inserting in lieu thereof "sections 11,12, and 13". 
(f) CLARIFICATION OF FINDINGS AND PURPOSES.—(1) The second 
sentence of section 2(10) of such Act (15 U.S.C. 3701(10)) is amended 
by inserting ", which include inventions, computer software, and 
training technologies," immediately after "developments". 
(2) Section 3(3) of such Act (15 U.S.C. 3702(3)) is amended by 
inserting ", including inventions, software, and training tech-
nologies," immediately after "developments". 
Approved October 20, 1986. 
LEGISLATIVE HISTORY—H.R. 3773: 
HOUSE REPORTS: No. 99-415 (Comm. on Science and Technology) and No. 99-953 
(Comm. of Conference). 
SENATE REPORTS: No. 99-283 (Comm. on Commerce, Science, and Transportation). 
CONGRESSIONAL RECORD: 
Vol. 131 (1985): Dec. 9, considered and passed House. 
Vol. 132 (1986): Aug. 9, considered and passed Senate, amended. 
Oct. 3, Senate agreed to conference report. 
Oct. 7, House agreed to conference report.