text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Technology Transfer Improvements Act 
  of 1993''.
  
  SEC. 2. FINDINGS.
  
      The Congress finds and declares the following:
              (1) The commercialization of technology and industrial 
          innovation are central to the economic, environmental, and 
          social well-being of citizens of the United States.
              (2) The 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 the Federal laboratories to the 
          private sector, but the commercialization of technology and 
          industrial innovation in the United States depends largely upon 
          actions by business.
              (3) Government action to claim a right of ownership to any 
          invention or other intellectual property developed under a 
          Cooperative Research and Development Agreement can inhibit the 
          establishment of such agreements with business and can prevent 
          the commercialization of technology and industrial innovation 
          by business.
              (4) The commercialization of technology and industrial 
          innovation in the United States will be enhanced if the 
          ownership of any invention or other intellectual property 
          developed under a Cooperative Research and Development 
          Agreement belongs to a company or companies incorporated in the 
          United States.
  
  SEC. 3. TITLE TO INTELLECTUAL PROPERTY ARISING FROM COOPERATIVE 
                RESEARCH AND DEVELOPMENT AGREEMENTS.
  
      Section 12 of the Stevenson-Wydler Technology Innovation Act of 
  1980 (15 U.S.C. 3710a) is amended as follows:
              (1) In the text of subsection (b) immediately preceding 
          paragraph (1), strike ``Government-operated Federal laboratory, 
          and to the extent provided in an agency-approved joint work 
          statement, a Government-owned contractor-operated laboratory, 
          may'' and insert ``Federal laboratory shall ensure that title 
          to any intellectual property arising from the agreement, except 
          intellectual property developed in whole by a laboratory 
          employee, is assigned to the collaborating party or parties to 
          the agreement in exchange for reasonable compensation to the 
          laboratory, and may''.
              (2) In subsection (b)(2), strike ``or in part''.
              (3) Amend subsection (b)(3) to read as follows:
              ``(3) retain a nonexclusive, nontransferable, irrevocable, 
          paid-up license from the collaborating party or parties for any 
          intellectual property arising from the agreement, and have such 
          license practiced throughout the world by or on behalf of the 
          Government, but shall not, in the exercise of such license, 
          publicly disclose proprietary information related to the 
          license;''.
              (4) Amend subsection (b)(4) to read as follows:
              ``(4) retain the right, in accordance with procedures 
          provided in regulations promulgated under this section, to 
          require a collaborating party to grant to a responsible 
          applicant or applicants a nonexclusive, partially exclusive, or 
          exclusive license to use the subject intellectual property in 
          any field of use, on terms that are reasonable under the 
          circumstances, or if the collaborating party fails to grant 
          such a license, to grant the license itself if the laboratory 
          finds that--
                      ``(A) the collaborating party has not taken, and is 
                  not expected to take within a reasonable time, 
                  effective steps to achieve practical application of the 
                  subject intellectual property in the field of use;
                      ``(B) such action is necessary to meet health or 
                  safety needs that are not reasonably satisfied by the 
                  collaborating party;
                      ``(C) such 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
                      ``(D) the collaborating party has not entered into 
                  or is in breach of an agreement made pursuant to 
                  subsection (c)(4)(B).''.
              (5) In subsection (d)(2), strike ``and'' at the end;
              (6) In subsection (d)(3), strike the period at the end and 
          insert ``; and''.
              (7) At the end of subsection (d), insert the following new 
          paragraph:
              ``(4) the term `intellectual property rights' means--
                      ``(A) in the case of government-owned, government-
                  operated Federal laboratories, patents; and
                      ``(B) in the case of government-owned, contractor-
                  operated Federal laboratories, patents, copyrights, and 
                  computer chip mask work registrations.''.
  
  SEC. 4. DISTRIBUTION OF INCOME FROM INTELLECTUAL PROPERTY RECEIVED BY 
                FEDERAL LABORATORIES.
  
      Section 14 of the Stevenson-Wydler Technology Innovation Act of 
  1980 (15 U.S.C. 3710c) is amended to read as follows:
  
  ``SEC. 14. DISTRIBUTION OF INCOME FROM INTELLECTUAL PROPERTY RECEIVED 
                BY FEDERAL AGENCIES OR LABORATORIES.
  
      ``(a) In General.--
              ``(1) Except as provided in paragraphs (2) and (4), any 
          income received by a Federal agency or laboratory from the 
          licensing or assignment of intellectual property under 
          agreements entered into by Federal laboratories under section 
          12, and intellectual property of Federal agencies or 
          laboratories licensed under section 207 of title 35, United 
          States Code, or under any other provision of law, shall be 
          retained by the agency or laboratory and shall be disposed of 
          as follows:
                      ``(A)(i) The head of the agency or laboratory or 
                  his designee shall pay to the laboratory employee or 
                  employees who have assigned their rights in the 
                  intellectual property to the United States, to the 
                  laboratory operator, or to a collaborating party or 
                  parties to a research agreement an amount equal to the 
                  sum of--
                              ``(I) the first $10,000 received by the 
                          agency or laboratory from the intellectual 
                          property; and
                              ``(II) 15 percent of any income received by 
                          the agency or laboratory from the intellectual 
                          property in excess of the sum of the amount 
                          paid pursuant to item (I) and the value of 
                          unreimbursed research and development resources 
                          provided by the laboratory under the terms of 
                          the agreement.
                      ``(ii) An agency or laboratory may provide 
                  appropriate incentives from royalties to laboratory 
                  employees who contribute substantially to the technical 
                  development of licensed or assigned intellectual 
                  property between the time that the intellectual 
                  property rights are legally asserted and the time of 
                  the licensing or assigning of the intellectual property 
                  rights.
                      ``(iii) The agency or laboratory shall retain the 
                  income received from intellectual property until the 
                  agency or laboratory makes payments to laboratory 
                  employees under clause (i) or (ii).
                      ``(B) The balance of the income shall be 
                  transferred to the agency's laboratories, with the 
                  majority share of the royalties or other income going 
                  to the laboratory where the intellectual property 
                  originated, and the income so transferred to any such 
                  laboratory may be used or obligated by that laboratory 
                  during the fiscal year in which it is received or 
                  during the succeeding fiscal year--
                              ``(i) for payment of not more than 15 
                          percent of such income for expenses incidental 
                          to the administration and licensing of 
                          intellectual property by the agency or 
                          laboratory with respect to intellectual 
                          property which originated 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;
                              ``(ii) 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;
                              ``(iii) to further scientific exchange 
                          among the laboratories of the agency; or
                              ``(iv) for education and training of 
                          employees consistent with the research and 
                          development mission 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.
          All income 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 fiscal year 
          succeeding the fiscal year in which the income was received 
          shall be paid into the United States Treasury.
              ``(2) If, after payments to employees under paragraph (1), 
          the intellectual property income received by an agency and its 
          laboratories in any fiscal year exceeds 5 percent of the budget 
          of the laboratories of the agency for that year, 75 percent of 
          such excess shall be paid to the United States Treasury 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 
          income not so used or obligated shall be paid into the United 
          States Treasury.
              ``(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 the employee is otherwise entitled or for which 
          the employee is otherwise eligible, or limit the amount 
          thereof. Any payment made under this section to any employee 
          shall continue after the employee leaves the employment of the 
          laboratory or agency.
              ``(4) A Federal agency receiving income as a result of 
          intellectual property management services performed for another 
          Federal agency or laboratory under section 207 of title 35, 
          United States Code, may retain such income to the extent 
          required to offset the payment of income from intellectual 
          property under paragraph (1)(A)(i), and costs and expenses 
          incurred under paragraph (1)(B)(i), including the cost of 
          foreign protection of the intellectual property of the other 
          agency. All income remaining after payment of the income, 
          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 intellectual property from which 
  the income is derived was 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 intellectual property was 
          originated;
  ``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 its annual submission to the Congress, each 
          Federal agency shall submit, to the appropriate authorization 
          and appropriations committee of both Houses of the Congress, a 
          summary of the amount of income received from intellectual 
          property and expenditures made (including employee awards) 
          under this section.
              ``(2) Not later than October 1, 1996, the Comptroller 
          General shall review the effectiveness of the various income-
          sharing programs established under this section and report to 
          the appropriate committees of the House of Representatives and 
          the Senate, in a timely manner, the Comptroller General's 
          findings, conclusions, and recommendations for improvements in 
          such programs.''.
  
  SEC. 5. AMENDMENT TO BAYH-DOLE ACT.
  
      Section 210(e) of title 35, United States Code, is amended by 
  inserting ``and the Technology Commercialization Act of 1993'' after 
  ``Federal Technology Transfer Act of 1986''.
target: Technology Transfer Improvements Act of 1993 - Amends the Stevenson-Wydler Technology Innovation Act of 1980 regarding title to intellectual property arising from cooperative research and developments agreements (CRADAs) to: (1) direct Federal laboratories to ensure that such title is assigned to the collaborating parties to the CRADA in exchange for reasonable compensation to the Federal laboratory; (2) authorize a Federal laboratory to retain (and practice on a worldwide basis) a nonexclusive, nontransferable, irrevocable, paid-up license from the collaborating parties for such property; and (3) authorize a Federal laboratory to require a collaborating partner to grant a license to use such property to a responsible applicant. 
  Defines intellectual property rights as:  (1) "patents" in the case of Government-owned, Government-operated Federal laboratories; and (2) "patents, copyrights, and computer chip mask work registration" in the case of Government-owned, contractor-operated Federal laboratories. 
  Sets forth a framework for the distribution of income from intellectual property received by Federal agencies or laboratories. 
  Requires the Comptroller General to report to the Congress on the effectiveness of the income-sharing programs established under this Act. 
  Amends the Bayh-Dole Act to grant this Act precedence over its provisions.
feat_title: Technology Transfer Improvements Act of 1993