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RCED-85-94 1 (1985-08-29)

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 REPORT BY THE


 Comptroller General


 DF THE UNITED STATES




 Federal Agencies' Policies And Practices

 Are In Accordance With Patent And

Trademark Amendments Of 1980


The Patent and Trademark Amendments of 1980 allows small businesses
and nonprofit organizations the option to retain title to inventions resulting
from federally sponsored research projects. This law also reiterates
federal agencies' authority to grant licenses for inventions that they own.
In February 1983 President Reagan directed federal agencies, to the extent
permitted by law, to adopt substantially the same policies set forth in the
law for all contractors as well as for small businesses and nonprofit
organizations.

GAO found that the 10 federal agencies that accounted for 98 percent of
the total actual and estimated federal research and development (R&D)
obligations in fiscal years 1983 and 1984, respectively, are allowing grants,
contracts, and cooperative agreements recipients to retain title to inven-
tions discovered while performing federally funded research projects.
These agencies are also granting licenses for inventions that they own.

In addition, GAO found that the Commerce Department is fulfilling its lead
agency role of monitoring federal agencies' implementation of the law.
Also, federal officials and representatives of various small businesses' and
nonprofit organizations' trade asssociations and interest groups have
mixed perceptions of whether the law has caused any increases or
decreases in their groups' R&D activities.

This is the third report submitted by the Comptroller General on how
federal agencies are implementing Public Law 96-517.



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                                                                   GAO/RCED-85-94
                                                                   AUGUST 29,1985
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