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'"'':''<br />

- 4 -<br />

In sum, in the context of the Space Station, a wide range of<br />

possible cooperative research activities might occur involving<br />

federal employees and employees of other organizations. For<br />

example, cooperative agreements might cover research aboard the<br />

Space Station between federal employees and employees of a U.S.<br />

corporation, university or other domestic organization, or research<br />

conducted only by employees of a domestic organization, where the<br />

facilities and/or equipment were provided by the U.S. government.<br />

By entering into a cooperative agreement under the, Act, the U.S.<br />

government could assure that any resulting technology would be<br />

licensed or owned by a U.S. corporation. The U. S. government<br />

could agree to grant a royalty-bearing license, or ownership, for<br />

any inventions made by a federal employee under section 11(b) (2)<br />

or (3). This, would permit the U. S. organization to take commercial<br />

advantage of any patents resulting from inventions made in the<br />

course of the research aboard the Space Station. In this way, the<br />

benefits of the research would go to the U.S. economy. At the<br />

same time, 'the Space Station would be the recipient of royalties<br />

earned by the licenses pursuant to section 13 of the Act.<br />

The Act provides special rules for those circumstances in which a<br />

federal laboratory might agree to a cooperative research and and<br />

development venture with a foreign firm or firms, where employees<br />

of those firms would conduct joint research'with federal employees<br />

aboard the Space Station. The Act, in section 11(c) (4) (B),<br />

permits cooperative agreements with foreign firms, but requires<br />

that the laboratories "give preference to business units located<br />

in the United States which agree that products embodying inventions<br />

made under the cooperative research and development agreement...<br />

will be manufactured in the United States". Further, the Act<br />

requires that the laboratory director, before entering into an<br />

agreement "in the case of any industrial organization or other<br />

person subject to the control of a foreign company or government,<br />

as appropriate, take into consideration whether or not such<br />

foreign government permits United States agencies, organizations,<br />

or other persons to enter into cooperative research and development<br />

agreements and licensing agreements". Should the Space Station<br />

decide to enter into cooperative research agreements with a<br />

foreign corporation it should assure that any patent rights<br />

clause in the agreement provide maximum rights of commercialization<br />

to U.S. firms.<br />

Technical Data<br />

For your information the latest draft of the proposed Executive<br />

Order on technology transfer requires agencies to delegate to its<br />

Federal laboratories the right to negotiate in cooperative<br />

agreements the disposition of intellectual property. As<br />

intellectual property includes technical data, the Space Station<br />

as a Federal laboratory could enter into a cooperative agreement<br />

leaving ownership or an exclusive license to technical data with<br />

anon-Federal entity.<br />

r-

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