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![handle is hein.gao/gaobaadxq0001 and id is 1 raw text is:
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WASHINGTON, D.C. SO 4
B-178104 MY 1973
The Hlonorable Claude S. Brinegar
The Secretary of Transportation
Dear Mr. Secretary:
Reference Is rade to a letter dated February 27, 1973,
from your General Counsel, requesting our decision as to the
[authority of the Department of nsportationfOla to enter
into a nonexclu3ive patent license with International Tele-
* phone and Telegraph Corporation (ITT) under ITT 11.$. Gloess
Patent Io. 2,807,016, issued September 17, 1957, and sched-
uled to expire on September 15, 1974, relating ti pl.n-position
Indicator radar.
Xo suturize, the license would be effetive as of the
date on which ITT first lodged a claim for compensation with
DOT. The license would be royalty-bearing based on post and
future departmental procurements. The General. Counsel con-
siders it to be necessary and in the best interests of DOT to
take the liceuse to racognize a deservJng patent and avoid the
disruption incidcnt to litigation in thte Court of Claims.
It is points6 out that two asencies of DOT use the patent
without licence; that ITT has offered and apparently has the
authority to grant the license proposed; that the patented
invent-ion has been used in DOT radar pro:urements; and that
the Department of Defense (DOD) has becn. a licensee under the
instant patent for its radar procurements. Reference is made
to a 1961 DOD license agreement covering future royalties and
providing for a lunp-sum payment to ITT for a release of all
Government agencies for past Infringemont prior to the effec-
tivc date of the agreement. Also, all tmown domestic manu-
facturers of radar have accepted a license under the instant
patent. The royalty rate proposed would be the same nov paid
by DOD,
The General Counsel presents oeveral legal arguments to
support the proposed execution of the license agreement with
ITT--(l) tha fact that other Government .gencles no a matter
of courco either take patent licenses ortallow royalty charges
in the vrroerer.cnt of rupp]1ctn: (2) tlu' eonnlerel nIoc&'Tnt
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