35 U.S.C. § 183 — Right to compensation

submitted 74 years ago by ch. 950 to r/title-35-PATENTS · 464 words · no verdicts yet

in plain englishAI-generated · not legal advice

If the government orders a patent kept secret, the applicant can seek payment for the resulting harm and for the government's use of the invention. They can ask the relevant agency to settle, or sue in the Court of Federal Claims or a federal district court if settlement fails.

An applicant — or their successors, assigns, or legal representatives — whose patent the government withholds under a secrecy order has a right to seek compensation. This right starts on whichever date is later: the date the applicant learns their application would otherwise qualify for a patent, or February 1, 1952. It ends six years after the patent is finally issued. The applicant can apply to the head of whichever department or agency issued the secrecy order, asking for payment for the damage the order caused and for the government's use of the invention, based on what the applicant disclosed. The right to payment for the government's use starts on the date the government first used the invention. The agency head can settle the claim by agreement with the applicant, and that settlement is final and binding, no matter what any other law says. If a full settlement can't be reached, the agency head may pay the applicant up to 75 percent of what the agency head considers fair compensation for the damage and use. The applicant can then sue the United States — in the Court of Federal Claims, or in the federal district court where they live — for whatever amount, combined with the earlier award, would add up to full fair compensation. A patent owner whose application was under a section 181 secrecy order, but who never applied for compensation this way, can still sue in the Court of Federal Claims after the patent is issued, seeking fair compensation for the secrecy order's damage and the government's use, based on their disclosure. Here too, the right to compensation for use starts on the date the government first used the invention. In any such lawsuit, the government may use any defense available to it under section 1498 of title 28. This section does not give a right to sue to anyone — or their successors, assigns, or legal representatives — who discovered, invented, or developed the invention while working full-time for the United States.

the actual law source: uscode.house.gov ↗public domain

An applicant, his successors, assigns, or legal representatives, whose patent is withheld as herein provided, shall have the right, beginning at the date the applicant is notified that, except for such order, his application is otherwise in condition for allowance, or February 1, 1952, whichever is later, and ending six years after a patent is issued thereon, to apply to the head of any department or agency who caused the order to be issued for compensation for the damage caused by the order of secrecy and/or for the use of the invention by the Government, resulting from his disclosure. The right to compensation for use shall begin on the date of the first use of the invention by the Government. The head of the department or agency is authorized, upon the presentation of a claim, to enter into an agreement with the applicant, his successors, assigns, or legal representatives, in full settlement for the damage and/or use. This settlement agreement shall be conclusive for all purposes notwithstanding any other provision of law to the contrary. If full settlement of the claim cannot be effected, the head of the department or agency may award and pay to such applicant, his successors, assigns, or legal representatives, a sum not exceeding 75 per centum of the sum which the head of the department or agency considers just compensation for the damage and/or use. A claimant may bring suit against the United States in the United States Court of Federal Claims or in the District Court of the United States for the district in which such claimant is a resident for an amount which when added to the award shall constitute just compensation for the damage and/or use of the invention by the Government. The owner of any patent issued upon an application that was subject to a secrecy order issued pursuant to section 181, who did not apply for compensation as above provided, shall have the right, after the date of issuance of such patent, to bring suit in the United States Court of Federal Claims for just compensation for the damage caused by reason of the order of secrecy and/or use by the Government of the invention resulting from his disclosure. The right to compensation for use shall begin on the date of the first use of the invention by the Government. In a suit under the provisions of this section the United States may avail itself of all defenses it may plead in an action under section 1498 of title 28. This section shall not confer a right of action on anyone or his successors, assigns, or legal representatives who, while in the full-time employment or service of the United States, discovered, invented, or developed the invention on which the claim is based.

Source credit: (July 19, 1952, ch. 950, 66 Stat. 806; Pub. L. 97–164, title I, § 160(a)(12), Apr. 2, 1982, 96 Stat. 48; Pub. L. 102–572, title IX, § 902(b)(1), Oct. 29, 1992, 106 Stat. 4516; Pub. L. 112–29, § 20(j), Sept. 16, 2011, 125 Stat. 335.)

history & why it existsrecord from the source credit

1952Enacted · Act of July 19, 1952, ch. 950 · 66 Stat. 806
1982Amended · Pub. L. 97-164 · 96 Stat. 48
1992Amended · Pub. L. 102-572 · 106 Stat. 4516
2011Amended · Pub. L. 112-29 · 125 Stat. 335

A history note hasn’t been published yet. The record shows enactment by ch. 950 on 1952-07-19.

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