PUBLIC LAW 104-113—MAR. 7, 1996 110 STAT. 777 "(3) Under an agreement entered into pursuant to subsection (a)(1), a laboratory may— "(A) accept, retain, and use funds, personnel, services, and property from a collaborating party and provide personnel, services, and property to a collaborating party; "(B) use funds received from a collaborating party in accordance with subparagraph (A) to hire personnel to carry out the agreement who will not be subject to full-time-equivalent restrictions of the agency; "(C) to the extent consistent with any applicable agency requirements or standards of conduct, permit an employee or former employee of the laboratory to participate in an effort to commercialize an invention made by the employee or former employee while in the employment or service of the Government; and "(D) waive, subject to reservation by the Government of a nonexclusive, irrevocable, paid-up license to practice the invention or have the invention practiced throughout the world by or on behalf of the Government, in advance, in whole or in part, any right of ownership which the Federal Government may have to any subject invention made under the agreement by a collaborating party or employee of a collaborating party. "(4) A collaborating party in an exclusive license in any invention made under an agreement entered into pursuant to subsection (a)(1) shall have the right of enforcement under chapter 29 of title 35, United States Code. "(5) A Government-owned, contractor-operated laboratory that enters into a cooperative research and development agreement pursuant to subsection (a)(1) may use or obligate royalties or other income accruing to the laboratory under such agreement with respect to any invention only— "(A) for payments to inventors; "(B) for purposes described in clauses (i), (ii), (iii), and (iv) of section 14(a)(1)(B); and "(C) for scientific research and development consistent with the research and development missions and objectives of the laboratory. ". SEC. 5. DISTRIBUTION OF INCOME FROM INTELLECTUAL PROPERTY Royalties. RECEIVED BY FEDERAL LABORATORIES. Section 14 of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3710c) is amended— (1) by amending subsection (a)(1) to read as follows: "(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 12, and from the licensing of inventions of Federal laboratories under section 207 of title 35, United States Code, 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 to the inventor or coinventors. "(ii) An agency or laboratory may provide appropriate incentives, from royalties, or other payments, to laboratory 29-194O-96 -26:QL3Part1
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