Page images


Directives 2040.2, 5230.24, and 5230.25 (references (f), (8), and (b)). Recoupment of nonrecurring cost policies are addressed in DoD Directive 2140.2 (reference (j)).

11. Identify and encourage persons to act as conduits between and anong Federal laboratories, universities, and the private sector for the transfer of technology developed from federally funded R&D efforts.

12. Ensure that State and local governments, universities, and the private sector are provided with information on the technology, expertise, and facilities available in Federal laboratories.

[blocks in formation]


The Under Secretary of Defense for Acquisition (USD(A)) shall:


Establish departmental policies and procedures for domestic technology transfer.

b. Coordinate interservice activity under the Domestic Technology Transfer Program.


Cooperate with other Federal agencies, particularly the Department of Commerce and the National Science Foundation, to maximize the effectiveness of federal domestic technology transfer efforts.

[blocks in formation]

a. Designate, at the Headquarters level, a point of contact for domestic technology transfer activities who shall participate with the appropriate ORTAs from the DoDs laboratories as a voting member in the Federal Laboratory Consortium (FLC).

b. Be authorized to license, assign, or waive rights to intellectual property developed by the DoD laboratories through cooperative R&D agreements or solely within or under the direct control of the laboratories.


Ensure review by legal counsel of the DoD Components and/or activities of CRDAs for consistency with the standards of conduct requirements before final approval and participation in a CRDA. As prescribed by P.L. 96-480 (reference (a)) a Headquarters level review must be completed within 30 days of submission by the DoD laboratory.


d. Specify the appropriate R&D activities that may require a full-time equivalent position to be responsible for performing the ORTA functions. includes any activity having 200 or more full-time equivalent professional scientific, engineering, and related technical personnel.


Provide for the participation of ORTA designated personnel in appropriate management development programs.

f. Transfer through the National Institute for Standards and Technology for use by the FLC on an annual basis, from fiscal year 1987 to 1991, an amount equal to eight thousandths of one percent (0.008%) of the Components' R&D laboratory budget that is to be used by the laboratories of the Component as defined in this regulation.

8. Cooperate with other Federal Agencies to maximize the effectiveness of Federal domestic technology transfer efforts.

h. Establish an ORTA at laboratories and other activities to perform, as a minimum, the domestic technology transfer functions specified in this Regulation. Each ORTA shall:

(1) Perform the following functions as specified in P.L. 96-480 and P.L. 99-502 (reference (a)).

(a) Prepare an application assessment of selected R&D projects that have potential commercial applications.

(b) Provide and disseminate information on federally owned or originated products, processes, and services having potential application to State and local governments and to private industry.

(c) Cooperate with and assist the National Technical Information Service (NTIS), the FLC, and other organizations that link the R&D resources of that laboratory and the Federal Government as a whole to potential users in State and local government and private industry.

(d) Participate, where feasible, in regional, State, and local programs designed to facilitate technology transfer for the benefit of the region, State, or local jurisdiction in which the activity is located.

(2) Participate in appropriate activities of the public and private sector that provide the opportunities to achieve technology transfer objectives; e.8., local government meetings or small business conferences.

(3) Assist program managers and technical department heads in identifying technologies suitable for transfer and for which application assessments need to be developed.

(4) Coordinate domestic technology transfer activities with patent counsel to determine rights to technical data, patent and licensing implications, and the commercial potential of patentable technology.

(5) Ensure that no domestic technology transfer functions substantially compe with similar services available in the private sector.

(6) Ensure that no domestic technology transfer functions conflict with export control regulations, policies governing militarily critical technology, or any of the responsibilities and procedures for technology transfer control in DoD Directives, Instructions, and publications.

i. Encourage and cooperate with the establishment of technical volunteer programs as a resource to complement and support domestic technology transfer activities.

j. Establish a mechanism for coordinating domestic technology transfer efforts with Small and Disadvantaged Business Utilization Specialists for the purpose of stimulating commercialization of appropriate technologies by small business.

k. Make available for use within the Component not less than one half of one percent,(0.5%) of the total R&D budget, to support the domestic technology transfer functions of that Component as specified in Section 11 of P.L. 96-480 (reference (a)). This provision may be waived by notification to Congress on an annual basis at the same time as the budget submission to the Congress including explanation of reasons for the waiver and alternate methods of conducting the technology transfer function.

1. Document and input a description of all CRDAs to the Defense Technical Information Center (DTIC) Work Unit Information System within 30 working days of the initiation of such agreements.

Maintain permanent records of all CRDAs at Components or their designated activities.

[blocks in formation]

The principles of the domestic technology transfer program as established by the DoD Components must include but are not limited to the following:

1. DoD Components and their Government-operated laboratories may enter into CRDAS. Within CRDAs, and subject to national security limitations, DoD Components may:


Be party to an agreement that includes other Federal Agencies, State and local governments, industrial organizations, public and private foundations, nonprofit organizations, or other persons (including licensees of inventions owned by the Federal Agency). Such agreements, to the maximum extent possible, shall give special consideration to small business firms and consortia involving small business firms, and give preference to business units located in the United States that agree that products embodying inventions made under a CRDA or produced through the use of such inventions will be manufactured 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, take into account whether or not such foreign government permits U.S. agencies, organizations, or other persons to enter into CRDAs and licensing agreements.

b. Provide personnel, services, facilities, equipment, or other resources with or without reimbursement (but not funds to non-Federal parties), and non-Federal parties may provide to the laboratory funds, personnel, services, facilities, equipment, or other resources toward the conduct of specified research or development efforts that are consistent with the mission of the Component's activity.


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 employee under the agreement, retaining 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 Government and such other rights as the DoD Component and/or activity deems appropriate.

d. Waive, subject to reservation by the Government of a nonexclusive, irrevocable, paid-up license to practice an invention or have an 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 an agreement by a collaborating party or employee of a collaborating party.


To the extent consistent with established DoD Component requirements, standards of conduct, and subject to national security considerations, permit employees or former employees to participate in efforts to commercialize inventions made while in U.S. Government service.

f. In addition the principles stated in paragraphs C.1.a. through e. above, where appropriate, shall apply to the patenting and licensing of Government inventions that are accomplished independent of a CRDA.

[blocks in formation]


Within the appropriate awards programs as established by DoD Instruction 5120.16 (reference (h)), the DoD Components shall establish and promote appropriate monetary and professional excellence recognition of Federal employees who contribute materially to the objectives of the domestic technology transfer program. Such awards shall include recognition of:.

(1) Inventions, innovations, or other outstanding scientific or technological contribution to the missions of the Components, their activities and/or throughout the Federal Government.

(2) Exemplary activities that promote domestic transfer of science and technology development within the Federal Government and result in the use of such science and technology by American industry or business, universities, State or local governments, or other non-Federal parties.

b. Such awards shall not be given in place of or in lieu of any monetary gain obtained by current or former employees as a result of royalties, licenses, or the other such agreements as negotiated under the guidelines of this program.


Distribution of royalties or other income received by DOD Components

Royalties or other income received on account of any invention shall be payable to the inventor(s), if such persons were employed by the Agency at the time of the invention. Such payments shall continue as long as the Agency receives economic benefit regardless of the inventor's future

employment status. If an invention is licensed for commercial use, and if royalty or other income results from the license, the Government inventor(s) are to receive income as prescribed in the remainder of this paragraph. If the income received by the Government is less than $1000 times the number of inventor(s), (one or more), the Government inventor(s) shall receive the entire amount of income in equal shares. If the income is greater than $1000 times the number of Government inventor(s), the inventor(s) shall share equally 20% of the total income or $1000 each, whichever is greater, and subject to the conditions prescribed in subsection C.2., above. Inventor(s) employed by the agency at the time the invention was made shall receive payment of their prescribed share of any royalties or other income received by the Government on an annualized basis.

b. Payments of royalties or other income from inventions to an employee shall not exceed $100,000 per year without Presidential approval as provided in 5 U.S.C. 4504 (reference (k)).

[ocr errors]

Government inventors shall be entitled to income as discussed in this section for all income derived by the Government starting October 20, 1986, the effective date of P.L. 99-502 (reference (a)). This applies to royalties or other income received for inventions since that date regardless of the of the invention.


Assignment and use of income should be applied in accordance with the following schedule:

(1) succeeding year.

It must be used within the fiscal year received plus the

(2) It should be used principally by the activity that participated in the development of the invention.

(3) After assignment of royalties or other income to inventors under paragraph C.3.a. above, income may be used for:

(a) Payment of expenses incidental to administration and licensing of inventions.

(b) Reward of scientific, engineering, and technical employees at that activity.

(c) of the DoD Component.

Promotion of scientific exchange among other activities

(d) Education and training of employees consistent with the R&D mission and objectives of the Department of Defense.

(e) Other activities that increase the licensing potential for transfer of the technology of the Government laboratory.

« PreviousContinue »