Laws: Cases and Codes : U.S. Code : Title 15 : Section 278n


   
U.S. Code as of: 01/19/04
Section 278n. Advanced Technology Program

    (a) Establishment; purpose; focus; guidance
      There is established in the Institute an Advanced Technology
    Program (hereafter in this chapter referred to as the "Program")
    for the purpose of assisting United States businesses in creating
    and applying the generic technology and research results necessary
    to - 
        (1) commercialize significant new scientific discoveries and
      technologies rapidly; and
        (2) refine manufacturing technologies.

    The Secretary, acting through the Director, shall assure that the
    Program focuses on improving the competitive position of the United
    States and its businesses, gives preference to discoveries and to
    technologies that have great economic potential, and avoids
    providing undue advantage to specific companies. In operating the
    Program, the Secretary and Director shall, as appropriate, be
    guided by the findings and recommendations of the Biennial National
    Critical Technology Reports prepared pursuant to section 6683 (!1)
    of title 42.

    (b) Authority of Secretary; research and development; contracts and
      cooperative agreements; Federal laboratories; other activities
      with joint ventures
      Under the Program established in subsection (a) of this section,
    and consistent with the mission and policies of the Institute, the
    Secretary, acting through the Director, and subject to subsections
    (c) and (d) of this section, may - 
        (1) aid industry-led United States joint research and
      development ventures (hereafter in this section referred to as
      "joint ventures") (which may also include universities and
      independent research organizations), including those involving
      collaborative technology demonstration projects which develop and
      test prototype equipment and processes, through - 
          (A) provision of organizational and technical advice; and
          (B) participation in such joint ventures by means of grants,
        cooperative agreements, or contracts, if the Secretary, acting
        through the Director, determines participation to be
        appropriate, which may include (i) partial start-up funding,
        (ii) provision of a minority share of the cost of such joint
        ventures for up to 5 years, and (iii) making available
        equipment, facilities, and personnel,

      provided that emphasis is placed on areas where the Institute has
      scientific or technological expertise, on solving generic
      problems of specific industries, and on making those industries
      more competitive in world markets;
        (2) provide grants to and enter into contracts and cooperative
      agreements with United States businesses (especially small
      businesses), provided that emphasis is placed on applying the
      Institute's research, research techniques, and expertise to those
      organizations' research programs;
        (3) involve the Federal laboratories in the Program, where
      appropriate, using among other authorities the cooperative
      research and development agreements provided for under section
      3710a of this title; and
        (4) carry out, in a manner consistent with the provisions of
      this section, such other cooperative research activities with
      joint ventures as may be authorized by law or assigned to the
      Program by the Secretary.
    (c) Authority of Secretary; selection criteria; monitoring use of
      technologies; overseas transfer; annual report to Congress;
      financial reporting and auditing; routine consideration of
      Committee advice; dissemination of research results
      The Secretary, acting through the Director, is authorized to take
    all actions necessary and appropriate to establish and operate the
    Program, including - 
        (1) publishing in the Federal Register draft criteria and, no
      later than six months after August 23, 1988, following a public
      comment period, final criteria, for the selection of recipients
      of assistance under subsection (b)(1) and (2) of this section;
        (2) monitoring how technologies developed in its research
      program are used, and reporting annually to the Congress on the
      extent of any overseas transfer of these technologies;
        (3) establishing procedures regarding financial reporting and
      auditing to ensure that contracts and awards are used for the
      purposes specified in this section, are in accordance with sound
      accounting practices, and are not funding existing or planned
      research programs that would be conducted in the same time period
      in the absence of financial assistance under the Program;
        (4) assuring that the advice of the Committee established under
      section 278 of this title is considered routinely in carrying out
      the responsibilities of the Institute; and
        (5) providing for appropriate dissemination of Program research
      results.
    (d) Contracts or awards; criteria; restrictions
      When entering into contracts or making awards under subsection
    (b) of this section, the following shall apply:
        (1) No contract or award may be made until the research project
      in question has been subject to a merit review, and has, in the
      opinion of the reviewers appointed by the Director and the
      Secretary, acting through the Director, been shown to have
      scientific and technical merit.
        (2) In the case of joint ventures, the Program shall not make
      an award unless the award will facilitate the formation of a
      joint venture or the initiation of a new research and development
      project by an existing joint venture.
        (3) No Federal contract or cooperative agreement under
      subsection (b)(2) of this section shall exceed $2,000,000 over 3
      years, or be for more than 3 years unless a full and complete
      explanation of such proposed award, including reasons for
      exceeding these limits, is submitted in writing by the Secretary
      to the Committee on Commerce, Science, and Transportation of the
      Senate and the Committee on Science, Space, and Technology of the
      House of Representatives. The proposed contract or cooperative
      agreement may be executed only after 30 calendar days on which
      both Houses of Congress are in session have elapsed since such
      submission. Federal funds made available under subsection (b)(2)
      of this section shall be used only for direct costs and not for
      indirect costs, profits, or management fees of the contractor.
        (4) In determining whether to make an award to a particular
      joint venture, the Program shall consider whether the members of
      the joint venture have made provisions for the appropriate
      participation of small United States businesses in such joint
      venture.
        (5) Section 552 of title 5 shall not apply to the following
      information obtained by the Federal Government on a confidential
      basis in connection with the activities of any business or any
      joint venture receiving funding under the Program - 
          (A) information on the business operation of any member of
        the business or joint venture; and
          (B) trade secrets possessed by any business or any member of
        the joint venture.

        (6) Intellectual property owned and developed by any business
      or joint venture receiving funding or by any member of such a
      joint venture may not be disclosed by any officer or employee of
      the Federal Government except in accordance with a written
      agreement between the owner or developer and the Program.
        (7) If a business or joint venture fails before the completion
      of the period for which a contract or award has been made, after
      all allowable costs have been paid and appropriate audits
      conducted, the unspent balance of the Federal funds shall be
      returned by the recipient to the Program.
        (8) Upon dissolution of any joint venture or at the time
      otherwise agreed upon, the Federal Government shall be entitled
      to a share of the residual assets of the joint venture
      proportional to the Federal share of the costs of the joint
      venture as determined by independent audit.
        (9) A company shall be eligible to receive financial assistance
      under this section only if - 
          (A) the Secretary finds that the company's participation in
        the Program would be in the economic interest of the United
        States, as evidenced by investments in the United States in
        research, development, and manufacturing (including, for
        example, the manufacture of major components or subassemblies
        in the United States); significant contributions to employment
        in the United States; and agreement with respect to any
        technology arising from assistance provided under this section
        to promote the manufacture within the United States of products
        resulting from that technology (taking into account the goals
        of promoting the competitiveness of United States industry),
        and to procure parts and materials from competitive suppliers;
        and
          (B) either - 
            (i) the company is a United States-owned company; or
            (ii) the Secretary finds that the company is incorporated
          in the United States and has a parent company which is
          incorporated in a country which affords to United
          States-owned companies opportunities, comparable to those
          afforded to any other company, to participate in any joint
          venture similar to those authorized under this chapter;
          affords to United States-owned companies local investment
          opportunities comparable to those afforded to any other
          company; and affords adequate and effective protection for
          the intellectual property rights of United States-owned
          companies.

        (10) Grants, contracts, and cooperative assignments under this
      section shall be designed to support projects which are high risk
      and which have the potential for eventual substantial widespread
      commercial application. In order to receive a grant, contract, or
      cooperative agreement under this section, a research and
      development entity shall demonstrate to the Secretary the
      requisite ability in research and technology development and
      management in the project area in which the grant, contract, or
      cooperative agreement is being sought.
        (11)(A) Title to any intellectual property arising from
      assistance provided under this section shall vest in a company or
      companies incorporated in the United States. The United States
      may reserve a nonexclusive, nontransferable, irrevocable paid-up
      license, to have practiced for or on behalf of the United States,
      in connection with any such intellectual property, but shall not,
      in the exercise of such license, publicly disclose proprietary
      information related to the license. Title to any such
      intellectual property shall not be transferred or passed, except
      to a company incorporated in the United States, until the
      expiration of the first patent obtained in connection with such
      intellectual property.
        (B) For purposes of this paragraph, the term "intellectual
      property" means an invention patentable under title 35 or any
      patent on such an invention.
        (C) Nothing in this paragraph shall be construed to prohibit
      the licensing to any company of intellectual property rights
      arising from assistance provided under this section.
    (e) Suspension for failure to satisfy eligibility criteria
      The Secretary may, within 30 days after notice to Congress,
    suspend a company or joint venture from continued assistance under
    this section if the Secretary determines that the company, the
    country of incorporation of the company or a parent company, or the
    joint venture has failed to satisfy any of the criteria set forth
    in subsection (d)(9) of this section, and that it is in the
    national interest of the United States to do so.
    (f) Coordination with other Federal technology programs
      When reviewing private sector requests for awards under the
    Program, and when monitoring the progress of assisted research
    projects, the Secretary and the Director shall, as appropriate,
    coordinate with the Secretary of Defense and other senior Federal
    officials to ensure cooperation and coordination in Federal
    technology programs and to avoid unnecessary duplication of effort.
    The Secretary and the Director are authorized to work with the
    Director of the Office of Science and Technology Policy, the
    Secretary of Defense, and other appropriate Federal officials to
    form interagency working groups or special project offices to
    coordinate Federal technology activities.
    (g) Meetings with industry sources
      In order to analyze the need for the value of joint ventures and
    other research projects in specific technical fields, to evaluate
    any proposal made by a joint venture or company requesting the
    Secretary's assistance, or to monitor the progress of any joint
    venture or any company research project which receives Federal
    funds under the Program, the Secretary, the Under Secretary of
    Commerce for Technology, and the Director may, notwithstanding any
    other provision of law, meet with such industry sources as they
    consider useful and appropriate.
    (h) Standards development
      Up to 10 percent of the funds appropriated for carrying out this
    section may be used for standards development and technical
    activities by the Institute in support of the purposes of this
    section.
    (i) Acceptance of funds from other Federal departments and agencies
      In addition to such sums as may be authorized and appropriated to
    the Secretary and Director to operate the Program, the Secretary
    and Director also may accept funds from other Federal departments
    and agencies for the purpose of providing Federal funds to support
    awards under the Program. Any Program award which is supported with
    funds which originally came from other Federal departments and
    agencies shall be selected and carried out according to the
    provisions of this section.
    (j) Definitions
      As used in this section - 
        (1) the term "joint venture" means any group of activities,
      including attempting to make, making, or performing a contract,
      by two or more persons for the purpose of - 
          (A) theoretical analysis, experimentation, or systematic
        study of phenomena or observable facts;
          (B) the development or testing of basic engineering
        techniques;
          (C) the extension of investigative finding or theory of a
        scientific or technical nature into practical application for
        experimental and demonstration purposes, including the
        experimental production and testing of models, prototypes,
        equipment, materials, and processes;
          (D) the collection, exchange, and analysis of research
        information;
          (E) the production of any product, process, or service; or
          (F) any combination of the purposes specified in
        subparagraphs (A), (B), (C), (D), and (E),

      and may include the establishment and operation of facilities for
      the conducting of research, the conducting of such venture on a
      protected and proprietary basis, and the prosecuting of
      applications for patents and the granting of licenses for the
      results of such venture; and
        (2) the term "United States-owned company" means a company that
      has majority ownership or control by individuals who are citizens
      of the United States.



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