Economic Development 

U.S. Code > Title 15 > Chapter 63 > § 3710b - Rewards for scientific, engineering, and technical personnel of Federal agencies

(a) In general
  (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 3710a of this title, and from
the licensing of inventions of Federal laboratories under section
207 of title 35 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, other than payments of patent costs as delineated by a
  license or assignment agreement, to the inventor or coinventors,
  if the inventor's or coinventor's rights are assigned to the
  United States.
    (ii) An agency or laboratory may provide appropriate
  incentives, from royalties, or other payments, to laboratory
  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 2 succeeding fiscal years - 
      (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) If, after payments to inventors under paragraph (1), the
royalties or other payments received by an agency in any fiscal
year exceed 5 percent of the budget of the agency for that year, 75
percent of such excess shall be paid to the Treasury of the United
States and the remaining 25 percent may be used or obligated under
paragraph (1)(B). Any funds not so used or obligated shall be paid
into the Treasury of the United States.
  (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 he
is otherwise entitled or for which he is otherwise eligible or
limit the amount thereof. Any payment made to an inventor as such
shall continue after the inventor leaves the laboratory or agency.
Payments made under this section shall not exceed $150,000 per year
to any one person, unless the President approves a larger award
(with the excess over $150,000 being treated as a Presidential
award under section 4504 of title 5).
  (4) A Federal agency receiving royalties or other payments as a
result of invention management services performed for another
Federal agency or laboratory under section 207 of title 35, may
retain such royalties or payments to the extent required to offset
payments to inventors under clause (i) of paragraph (1)(A), costs
and expenses incurred under clause (iv) of paragraph (1)(B), and
the cost of foreign patenting and maintenance for any invention of
the other agency. All royalties and other payments remaining after
offsetting the payments to inventors, 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 paragraph (1)(B).
(b) Certain assignments
  If the invention involved was one assigned to the Federal agency -
 
    (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
    (2) by an employee of the agency who was not working in the
  laboratory at the time the invention was made,

the agency unit that was involved in such assignment shall be
considered to be a laboratory for purposes of this section.
(c) Reports
  The Comptroller General shall transmit a report to the
appropriate committees of the Senate and House of Representatives
on the effectiveness of Federal technology transfer programs,
including findings, conclusions, and recommendations for
improvements in such programs. The report shall be integrated with,
and submitted at the same time as, the report required by section
202(b)(3) (!1) of title 35.

Legislative History

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