15 USC 3701 Natl Technology Transfer Law

PUBLIC LAW 104–113—MAR. 7, 1996

110 STAT. 775

Public Law 104–113
104th Congress
An Act
To amend the Stevenson-Wydler Technology Innovation Act of 1980 with respect
to inventions made under cooperative research and development agreements,
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 ‘‘National Technology Transfer
and Advancement Act of 1995’’.
SEC. 2. FINDINGS.

The Congress finds the following:
(1) Bringing technology and industrial innovation to the
marketplace is central to the economic, environmental, and
social well-being of the people of the United States.
(2) The Federal Government can help United States business to speed the development of new products and processes
by entering into cooperative research and development agreements which make available the assistance of Federal laboratories to the private sector, but the commercialization of technology and industrial innovation in the United States depends
upon actions by business.
(3) The commercialization of technology and industrial
innovation in the United States will be enhanced if companies,
in return for reasonable compensation to the Federal Government, can more easily obtain exclusive licenses to inventions
which develop as a result of cooperative research with scientists
employed by Federal laboratories.

Mar. 7, 1996
[H.R. 2196]

National
Technology
Transfer and
Advancement Act
of 1995.
15 USC 3701
note.
15 USC 3701
note.

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 DEVELOPMENT 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 agreement entered
into pursuant to subsection (a)(1), the laboratory may grant, or

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110 STAT. 776

Confidential
information.

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PUBLIC LAW 104–113—MAR. 7, 1996

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 laboratory employee under the agreement, for
reasonable compensation when appropriate. The laboratory shall
ensure, through such agreement, that the collaborating party has
the option to choose an exclusive license for a pre-negotiated 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 explicit conditions:
‘‘(A) A nonexclusive, nontransferable, irrevocable, paid-up
license from the collaborating party to the laboratory to practice
the invention or have the invention practiced throughout the
world by or on behalf of the Government. In the exercise
of such license, the Government shall not publicly disclose
trade secrets or commercial or financial information that is
privileged or confidential within the meaning of section
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 circumstances; or
‘‘(ii) if the collaborating party fails to grant such a
license, to grant the license itself.
‘‘(C) The Government may exercise its right retained under
subparagraph (B) only in exceptional circumstances and only
if the Government determines 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 requirements for
public use specified by Federal regulations, 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).
This determination is subject to administrative appeal and
judicial review under section 203(2) of title 35, United States
Code.
‘‘(2) Under agreements entered into pursuant to subsection
(a)(1), the laboratory shall ensure that a collaborating party may
retain title to any invention made solely by its employee in exchange
for normally granting the Government 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 for research or other Government
purposes.

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PUBLIC LAW 104–113—MAR. 7, 1996

110 STAT. 777

‘‘(3) Under an agreement entered into pursuant to subsection
(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 collaborating 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 agency;
‘‘(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 Government 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 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.
‘‘(4) A collaborating party in an exclusive license in any invention made under an agreement entered into pursuant to subsection
(a)(1) shall have the right of enforcement under chapter 29 of
title 35, United States Code.
‘‘(5) A Government-owned, contractor-operated laboratory that
enters into a cooperative research and development 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 consistent with
the research and development missions and objectives of the
laboratory.’’.
SEC. 5. DISTRIBUTION OF INCOME FROM INTELLECTUAL PROPERTY
RECEIVED BY FEDERAL LABORATORIES.

Royalties.

Section 14 of the Stevenson-Wydler Technology Innovation Act
of 1980 (15 U.S.C. 3710c) is amended—
(1) by amending subsection (a)(1) to read as follows:
‘‘(1) Except as provided in paragraphs (2) and (4), any royalties
or other payments received by a Federal agency from the licensing
and assignment of inventions under agreements entered into by
Federal laboratories under section 12, and from the licensing of
inventions of Federal laboratories 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 appropriate
incentives, from royalties, or other payments, to laboratory

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110 STAT. 778

PUBLIC LAW 104–113—MAR. 7, 1996
employees who are not an inventor 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 invention 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 payments shall
be transferred by the agency to its laboratories, with the majority share of the royalties or other payments from any invention
going to the laboratory where the invention occurred. The royalties or other payments so transferred to any 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) to reward scientific, engineering, and technical
employees of the laboratory, including developers of sensitive or classified technology, regardless of whether the
technology has commercial applications;
‘‘(ii) to further scientific exchange among the laboratories of the agency;
‘‘(iii) for education and training of employees consistent
with the research and development missions and objectives
of the agency or laboratory, and for other activities that
increase the potential for transfer of the technology of
the laboratories of the agency;
‘‘(iv) for payment of expenses incidental to the administration and licensing of intellectual property by the agency
or laboratory with respect to inventions made at that laboratory, including the fees or other costs for the services
of other agencies, persons, or organizations for intellectual
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 paragraph (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 appears and
inserting in lieu thereof ‘‘payments’’;
(B) by striking ‘‘the payment of royalties to inventors’’
in the first sentence thereof and inserting in lieu thereof
‘‘payments to inventors’’;

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PUBLIC LAW 104–113—MAR. 7, 1996

110 STAT. 779

(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 inventors,’’; 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 agency, or’’.
SEC. 6. EMPLOYEE ACTIVITIES.

Section 15(a) of the Stevenson-Wydler Technology Innovation
Act of 1980 (15 U.S.C. 3710d(a)) is amended—
(1) by striking ‘‘the right of ownership to an invention
under this Act’’ and inserting in lieu thereof ‘‘ownership of
or the right of ownership to an invention made by a Federal
employee’’; and
(2) by inserting ‘‘obtain or’’ after ‘‘the Government, 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 Technology Transfer
Act of 1986,’’.
SEC. 8. NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY 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 Institute 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—
(A) by inserting ‘‘, subject to the availability of appropriations,’’ after ‘‘post-doctoral fellowship program’’; and
(B) by striking ‘‘nor more than forty’’ and inserting
in lieu thereof ‘‘nor more than 60’’.

15 USC 278.

15 USC 278e.

15 USC 278g–2.

SEC. 9. RESEARCH EQUIPMENT.

Section 11(i) of the Stevenson-Wydler Technology Innovation
Act of 1980 (15 U.S.C. 3710(i)) is amended by inserting ‘‘loan,
lease, or’’ before ‘‘give’’.
SEC. 10. PERSONNEL.

15 USC 275 note.

The personnel management demonstration project established
under section 10 of the National Bureau of Standards Authorization
Act for Fiscal Year 1987 (15 U.S.C. 275 note) is extended indefinitely.

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110 STAT. 780

PUBLIC LAW 104–113—MAR. 7, 1996

SEC. 11. FASTENER QUALITY ACT AMENDMENTS.

(a) SECTION 2 AMENDMENTS.—Section 2 of the Fastener Quality
Act (15 U.S.C. 5401) is amended—
(1) by striking subsection (a)(4), and redesignating paragraphs (5) through (9) as paragraphs (4) through (8), respectively;
(2) in subsection (a)(7), as so redesignated by paragraph
(1) of this subsection, by striking ‘‘by lot number’’; and
(3) in subsection (b), by striking ‘‘used in critical applications’’ and inserting in lieu thereof ‘‘in commerce’’.
(b) SECTION 3 AMENDMENTS.—Section 3 of the Fastener Quality
Act (15 U.S.C. 5402) is amended—
(1) in paragraph (1)(B) by striking ‘‘having a minimum
tensile strength of 150,000 pounds per square inch’’;
(2) in paragraph (2), by inserting ‘‘consensus’’ after ‘‘or
any other’’;
(3) in paragraph (5)—
(A) by inserting ‘‘or’’ after ‘‘standard or specification,’’
in subparagraph (B);
(B) by striking ‘‘or’’ at the end of subparagraph (C);
(C) by striking subparagraph (D); and
(D) by inserting ‘‘or produced in accordance with ASTM
F 432’’ after ‘‘307 Grade A’’;
(4) in paragraph (6) by striking ‘‘other person’’ and inserting
in lieu thereof ‘‘government agency’’;
(5) in paragraph (8) by striking ‘‘Standard’’ and inserting
in lieu thereof ‘‘Standards’’;
(6) by striking paragraph (11) and redesignating paragraphs (12) through (15) as paragraphs (11) through (14),
respectively;
(7) in paragraph (13), as so redesignated by paragraph
(6) of this subsection, by striking ‘‘, a government agency’’
and all that follows through ‘‘markings of any fastener’’ and
inserting in lieu thereof ‘‘or a government agency’’; and
(8) in paragraph (14), as so redesignated by paragraph
(6) of this subsection, by inserting ‘‘for the purpose of achieving
a uniform hardness’’ after ‘‘quenching and tempering’’.
(c) SECTION 4 REPEAL.—Section 4 of the Fastener Quality Act
(15 U.S.C. 5403) is repealed.
(d) SECTION 5 AMENDMENTS.—Section 5 of the Fastener Quality
Act (15 U.S.C. 5404) is amended—
(1) in subsection (a)(1)(B) and (2)(A)(i) by striking ‘‘subsections (b) and (c)’’ and inserting in lieu thereof ‘‘subsections
(b), (c), and (d)’’;
(2) in subsection (c)(2) by striking ‘‘or, where applicable’’
and all that follows through ‘‘section 7(c)(1)’’;
(3) in subsection (c)(3) by striking ‘‘, such as the chemical,
dimensional, physical, mechanical, and any other’’;
(4) in subsection (c)(4) by inserting ‘‘except as provided
in subsection (d),’’ before ‘‘state whether’’; and
(5) by adding at the end the following new subsection:
‘‘(d) ALTERNATIVE PROCEDURE FOR CHEMICAL CHARACTERISTICS.—Notwithstanding the requirements of subsections (b) and
(c), a manufacturer shall be deemed to have demonstrated, for
purposes of subsection (a)(1), that the chemical characteristics of
a lot conform to the standards and specifications to which the

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110 STAT. 781

manufacturer represents such lot has been manufactured if the
following requirements are met:
‘‘(1) The coil or heat number of metal from which such
lot was fabricated has been inspected and tested with respect
to its chemical characteristics by a laboratory accredited in
accordance with the procedures and conditions specified by
the Secretary under section 6.
‘‘(2) Such laboratory has provided to the manufacturer,
either directly or through the metal manufacturer, a written
inspection and testing report, which shall be in a form prescribed by the Secretary by regulation, listing the chemical
characteristics of such coil or heat number.
‘‘(3) The report described in paragraph (2) indicates that
the chemical characteristics of such coil or heat number conform
to those required by the standards and specifications to which
the manufacturer represents such lot has been manufactured.
‘‘(4) The manufacturer demonstrates that such lot has been
fabricated from the coil or heat number of metal to which
the report described in paragraphs (2) and (3) relates.
In prescribing the form of report required by subsection (c), the
Secretary shall provide for an alternative to the statement required
by subsection (c)(4), insofar as such statement pertains to chemical
characteristics, for cases in which a manufacturer elects to use
the procedure permitted by this subsection.’’.
(e) SECTION 6 AMENDMENT.—Section 6(a)(1) of the Fastener
Quality Act (15 U.S.C. 5405(a)(1)) is amended by striking ‘‘Within
180 days after the date of enactment of this Act, the’’ and inserting
in lieu thereof ‘‘The’’.
(f) SECTION 7 AMENDMENTS.—Section 7 of the Fastener Quality
Act (15 U.S.C. 5406) is amended—
(1) by amending subsection (a) to read as follows:
‘‘(a) DOMESTICALLY PRODUCED FASTENERS.—It shall be unlawful
for a manufacturer to sell any shipment of fasteners covered by
this Act which are manufactured in the United States unless the
fasteners—
‘‘(1) have been manufactured according to the requirements
of the applicable standards and specifications and have been
inspected and tested by a laboratory accredited in accordance
with the procedures and conditions specified by the Secretary
under section 6; and
‘‘(2) an original laboratory testing report described in section 5(c) and a manufacturer’s certificate of conformance are
on file with the manufacturer, or under such custody as may
be prescribed by the Secretary, and available for inspection.’’;
(2) in subsection (c)(2) by inserting ‘‘to the same’’ after
‘‘in the same manner and’’;
(3) in subsection (d)(1) by striking ‘‘certificate’’ and inserting
in lieu thereof ‘‘test report’’; and
(4) by striking subsections (e), (f), and (g) and inserting
in lieu thereof the following:
‘‘(e) COMMINGLING.—It shall be unlawful for any manufacturer,
importer, or private label distributor to commingle like fasteners
from different lots in the same container, except that such manufacturer, importer, or private label distributor may commingle like
fasteners of the same type, grade, and dimension from not more
than two tested and certified lots in the same container during
repackaging and plating operations. Any container which contains

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Regulations.

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110 STAT. 782

PUBLIC LAW 104–113—MAR. 7, 1996

fasteners from two lots shall be conspicuously marked with the
lot identification numbers of both lots.
‘‘(f) SUBSEQUENT PURCHASER.—If a person who purchases fasteners for any purpose so requests either prior to the sale or
at the time of sale, the seller shall conspicuously mark the container
of the fasteners with the lot number from which such fasteners
were taken.’’.
(g) SECTION 9 AMENDMENT.—Section 9 of the Fastener Quality
Act (15 U.S.C. 5408) is amended by adding at the end the following
new subsection:
‘‘(d) ENFORCEMENT.—The Secretary may designate officers or
employees of the Department of Commerce to conduct investigations
pursuant to this Act. In conducting such investigations, those officers or employees may, to the extent necessary or appropriate
to the enforcement of this Act, exercise such authorities as are
conferred upon them by other laws of the United States, subject
to policies and procedures approved by the Attorney General.’’.
(h) SECTION 10 AMENDMENTS.—Section 10 of the Fastener Quality Act (15 U.S.C. 5409) is amended—
(1) in subsections (a) and (b), by striking ‘‘10 years’’ and
inserting in lieu thereof ‘‘5 years’’; and
(2) in subsection (b), by striking ‘‘any subsequent’’ and
inserting in lieu thereof ‘‘the subsequent’’.
(i) SECTION 13 AMENDMENT.—Section 13 of the Fastener Quality
Act (15 U.S.C. 5412) is amended by striking ‘‘within 180 days
after the date of enactment of this Act’’.
(j) SECTION 14 REPEAL.—Section 14 of the Fastener Quality
Act (15 U.S.C. 5413) is repealed.
SEC. 12. STANDARDS CONFORMITY.

(a) USE OF STANDARDS.—Section 2(b) of the National Institute
of Standards and Technology Act (15 U.S.C. 272(b)) is amended—
(1) in paragraph (2), by striking ‘‘, including comparing
standards’’ and all that follows through ‘‘Federal Government’’;
(2) by redesignating paragraphs (3) through (11) as paragraphs (4) through (12), respectively; and
(3) by inserting after paragraph (2) the following new paragraph:
‘‘(3) to compare standards used in scientific investigations,
engineering, manufacturing, commerce, industry, and educational institutions with the standards adopted or recognized
by the Federal Government and to coordinate the use by Federal agencies of private sector standards, emphasizing where
possible the use of standards developed by private, consensus
organizations;’’.
(b) CONFORMITY ASSESSMENT ACTIVITIES.—Section 2(b) of the
National Institute of Standards and Technology Act (15 U.S.C.
272(b)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph (11), as
so redesignated by subsection (a)(2) of this section;
(2) by striking the period at the end of paragraph (12),
as so redesignated by subsection (a)(2) of this section, and
inserting in lieu thereof ‘‘; and’’; and
(3) by adding at the end the following new paragraph:
‘‘(13) to coordinate Federal, State, and local technical standards activities and conformity assessment activities, with private sector technical standards activities and conformity assess-

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PUBLIC LAW 104–113—MAR. 7, 1996

110 STAT. 783

ment activities, with the goal of eliminating unnecessary
duplication and complexity in the development and promulgation of conformity assessment requirements and measures.’’.
(c) TRANSMITTAL OF PLAN TO CONGRESS.—The National
Institute of Standards and Technology shall, within 90 days after
the date of enactment of this Act, transmit to the Congress a
plan for implementing the amendments made by this section.
(d) UTILIZATION OF CONSENSUS TECHNICAL STANDARDS BY FEDERAL AGENCIES; REPORTS.—
(1) IN GENERAL.—Except as provided in paragraph (3) of
this subsection, all Federal agencies and departments shall
use technical standards that are developed or adopted by voluntary consensus standards bodies, using such technical standards as a means to carry out policy objectives or activities
determined by the agencies and departments.
(2) CONSULTATION; PARTICIPATION.—In carrying out paragraph (1) of this subsection, Federal agencies and departments
shall consult with voluntary, private sector, consensus standards bodies and shall, when such participation is in the public
interest and is compatible with agency and departmental missions, authorities, priorities, and budget resources, participate
with such bodies in the development of technical standards.
(3) EXCEPTION.—If compliance with paragraph (1) of this
subsection is inconsistent with applicable law or otherwise
impractical, a Federal agency or department may elect to use
technical standards that are not developed or adopted by voluntary consensus standards bodies if the head of each such
agency or department transmits to the Office of Management
and Budget an explanation of the reasons for using such standards. Each year, beginning with fiscal year 1997, the Office
of Management and Budget shall transmit to Congress and
its committees a report summarizing all explanations received
in the preceding year under this paragraph.
(4) DEFINITION OF TECHNICAL STANDARDS.—As used in this
subsection, the term ‘‘technical standards’’ means performancebased or design-specific technical specifications and related
management systems practices.

15 USC 272 note.

15 USC 272 note.

SEC. 13. SENSE OF CONGRESS.

It is the sense of the Congress that the Malcolm Baldrige
National Quality Award program offers substantial benefits to

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110 STAT. 784

PUBLIC LAW 104–113—MAR. 7, 1996

United States industry, and that all funds appropriated for such
program should be spent in support of the goals of the program.
Approved March 7, 1996.

LEGISLATIVE HISTORY—H.R. 2196:
HOUSE REPORTS: No. 104–390 (Comm. on Science).
CONGRESSIONAL RECORD:
Vol. 141 (1995): Dec. 12, considered and passed House.
Vol. 142 (1996): Feb. 7, considered and passed Senate, amended.
Feb. 27, House concurred in Senate amendments.

Æ

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