[Code of Federal Regulations]
[Title 32, Volume 5]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 32CFR746.2]

[Page 380-381]
 
                       TITLE 32--NATIONAL DEFENSE
 
                   CHAPTER VI--DEPARTMENT OF THE NAVY
 
PART 746_LICENSING OF GOVERNMENT INVENTIONS IN THE CUSTODY OF THE 
DEPARTMENT OF THE NAVY--Table of Contents
 
Sec. 746.2  Policy.

    (a) A major premise of the Presidential Statement fo Government 
Patent Policy, August 23, 1971 (36 FR 16887, August 26, 1971), is that 
government inventions normally will best serve the public interest when 
they are developed to the point of practical application and made 
available to the public in the shortest possible time. The granting of 
express nonexclusive or exclusive licenses for the practice of these 
inventions may assist in the accomplishment of the national objective to 
achieve a dynamic and efficient economy.
    (b) The granting of nonexclusive licenses generally is preferable, 
since the invention is thereby laid open to all interested parties and 
serves to promote competition in industry, if the invention is in fact 
promoted commercially. However, to obtain commercial utilization of the 
invention, it may be necessary to grant an exclusive license for a 
limited period of time as an incentive for the investment of risk 
capital to achieve practical application of an invention.
    (c) Whenever the grant of an exclusive license is deemed 
appropriate, it shall be negotiated on terms and conditions most 
favorable to the public interest. In selecting an exclusive licensee, 
consideration shall be given to the capabilities of the prospective 
licensee to further the technical and market development of the 
invention, his plan to undertake the development, the projected impact 
on competition, and the benefit to the Government and the public. 
Consideration shall be given

[[Page 381]]

also to assisting small business and minority business enterprises, as 
well as economically depressed, low income, and labor surplus areas, and 
whether each or any applicant is a United States citizen or corporation. 
Where there is more than one applicant for an exclusive license, that 
applicant shall be selected who is determined to be most capable of 
satisfying the criteria and achieving the goals set forth in this part.
    (d) Subject to the following: (1) Any existing or future treaty or 
agreement between the United States and any foreign government or inter-
governmental organization, or
    (2) Licenses under or other rights to inventions made or conceived 
in the course of or under Department of the Navy research and 
development contracts where such licenses or other rights to such 
inventions are provided for in the contract and retained by the party 
contracting with the Department of the Navy, no license shall be granted 
or implied in a government invention, except as provided for in this 
part.
    (e) No grant of a license under this part shall be construed to 
confer upon any licensee any immunity from the antitrust laws or from a 
charge of patent misuse, and the acquisiton and use of rights pursuant 
to this part shall not be immunized from the operation of state or 
federal law by reason of the source of the grant.