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35 U.S.C. § 203March-in rights

submitted 46 years ago by Pub. L. 96-517 to r/title-35-PATENTS · 381 words · no verdicts yet

in plain englishAI-generated · not legal advice

A federal agency can require a company to license a government-funded invention to someone else. This happens if the company fails to use it, or if health, safety, or legal needs demand it. The company can appeal the agency's decision to a federal court.

(a) When a small business or nonprofit owns a "subject invention" — one made using federal funding — the federal agency that funded it can step in. Following its own regulations, the agency can require the company (or whoever it assigned or exclusively licensed the invention to) to give a "reasonable" license to another qualified applicant. If the company refuses, the agency can grant the license itself. The agency can only do this if it decides one of these is true: (1) The company hasn't taken, and isn't likely to soon take, real steps to actually use the invention. (2) Stepping in is needed to meet health or safety needs the company isn't meeting. (3) Stepping in is needed to meet a federal regulation requiring public use, which the company isn't meeting. (4) The required agreement under section 204 was never made or waived, or a licensee is breaking that agreement. (b) A decision under this section (or under section 202(b)(4)) isn't covered by chapter 71 of title 41. The agency must set up an appeals process by regulation. A company, inventor, assignee, or exclusive licensee who's hurt by the decision can also file a petition — within 60 days — with the U.S. Court of Federal Claims, which can affirm, reverse, remand, or change the agency's decision. If the case falls under (a)(1) or (a)(3), the agency's decision is put on hold until all appeals or petitions are finished.
the actual law source: uscode.house.gov ↗public domain
(a)

With respect to any subject invention in which a small business firm or nonprofit organization has acquired title under this chapter, the Federal agency under whose funding agreement the subject invention was made shall have the right, in accordance with such procedures as are provided in regulations promulgated hereunder to require the contractor, an assignee or exclusive licensee of a subject invention to grant a nonexclusive, partially exclusive, or exclusive license in any field of use to a responsible applicant or applicants, upon terms that are reasonable under the circumstances, and if the contractor, assignee, or exclusive licensee refuses such request, to grant such a license itself, if the Federal agency determines that such—

(1)

action is necessary because the contractor or assignee has not taken, or is not expected to take within a reasonable time, effective steps to achieve practical application of the subject invention in such field of use;

(2)

action is necessary to alleviate health or safety needs which are not reasonably satisfied by the contractor, assignee, or their licensees;

(3)

action is necessary to meet requirements for public use specified by Federal regulations and such requirements are not reasonably satisfied by the contractor, assignee, or licensees; or

(4)

action is necessary because the agreement required by section 204 has not been obtained or waived or because a licensee of the exclusive right to use or sell any subject invention in the United States is in breach of its agreement obtained pursuant to section 204.

(b)

A determination pursuant to this section or section 202(b)(4) 1 shall not be subject to chapter 71 of title 41. An administrative appeals procedure shall be established by regulations promulgated in accordance with section 206. Additionally, any contractor, inventor, assignee, or exclusive licensee adversely affected by a determination under this section may, at any time within sixty days after the determination is issued, file a petition in the United States Court of Federal Claims, which shall have jurisdiction to determine the appeal on the record and to affirm, reverse, remand or modify, as appropriate, the determination of the Federal agency. In cases described in paragraphs (1) and (3) of subsection (a), the agency’s determination shall be held in abeyance pending the exhaustion of appeals or petitions filed under the preceding sentence.

Source credit: (Added Pub. L. 96–517, § 6(a), Dec. 12, 1980, 94 Stat. 3022; amended Pub. L. 98–620, title V, § 501(9), Nov. 8, 1984, 98 Stat. 3367; Pub. L. 102–572, title IX, § 902(b)(1), Oct. 29, 1992, 106 Stat. 4516; Pub. L. 107–273, div. C, title III, § 13206(a)(14), Nov. 2, 2002, 116 Stat. 1905; Pub. L. 111–350, § 5(i)(2), Jan. 4, 2011, 124 Stat. 3850.)

history & why it existsrecord from the source credit
  • 1980Enacted · Pub. L. 96-517 · 94 Stat. 3022
  • 1984Amended · Pub. L. 98-620 · 98 Stat. 3367
  • 1992Amended · Pub. L. 102-572 · 106 Stat. 4516
  • 2002Amended · Pub. L. 107-273 · 116 Stat. 1905
  • 2011Amended · Pub. L. 111-350 · 124 Stat. 3850

A history note hasn’t been published yet. The record shows enactment by Pub. L. 96-517 on 1980-12-12.

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