10 C.F.R. PART 780—PATENT COMPENSATION BOARD REGULATIONS
Title 10 - Energy
Authority: 42 U.S.C. 7151, 7254; 42 U.S.C. 5814, 5815; 42 U.S.C. 2183, 2187, 2223; 35 U.S.C. 183; North American Free Trade Agreement, Article 1709(10), as implemented by the North American Free Trade Agreement Implementing Act, Pub. L. 103–182.
Source: 46 FR 39581, Aug. 4, 1981, unless otherwise noted.
The regulations in this part establish the procedures, terms, and conditions for Patent Compensation Board: (a) Proceedings to declare a patent affected with the public interest pursuant to section 153a of the Atomic Energy Act of 1954 (Pub. L. 83–703; 42 U.S.C. 2183); (b) Proceedings to determine a reasonable royalty fee pursuant to section 157 of the Atomic Energy Act of 1954; (c) Proceedings for the grant of an award pursuant to section 157 of the Atomic Energy Act of 1954; (d) Proceedings to obtain compensation pursuant to section 173 of the Atomic Energy Act of 1954 and the Invention Secrecy Act (35 U.S.C. 183); And for applications to the Department of Energy (DOE) for a patent license pursuant to sections 153b(2) and 153c of the Atomic Energy Act of 1954. (a) Act means the Atomic Energy Act of 1954 (Pub. L. 83–703; 42 U.S.C. 2011). (b) Application means the application filed by an applicant for a patent license, for the determination of a reasonable royalty fee, for an award, or for compensation under this part. (c) Board means the Patent Compensation Board. (d) Chairman means the Chairman of the Patent Compensation Board. (e) Department, or DOE, or Department of Energy means the Department of Energy, established by the Department of Energy Organization Act (Pub. L. 95–91; 42 U.S.C. 7101). (f) Party means the applicant, patent owner, Department representative, and any person admitted as a party by the Board for any proceeding under this part. (g) Patent Owner means the owner of record in the United States Patent and Trademark Office. (h) Secretary means the Secretary of the Department of Energy or the delegate of the Secretary of Energy. The Patent Compensation Board was established by section 157 of the Atomic Energy Act of 1954. It was transferred to the Energy Research and Development Administration pursuant to section 104(d) of the Energy Reorganization Act of 1974 (42 U.S.C. 5814) and subsequently to the Department of Energy by section 301 of the Department of Energy Organization Act (42 U.S.C. 7151). Under section 157, the Board is given authority to determine reasonable royalty fees or resolve issues involving the grant of awards. In addition, the Board has authority: (a) To hear and make decisions as to compensation under section 173 of the Act (42 U.S.C. 2223) and the Invention Secrecy Act (35 U.S.C. 183); (b) To hear and make decisions as to whether a specific patent is affected with the public interest pursuant to section 153a of the Act; (c) To hear and make decisions as to whether a specific patent license should be granted under sections 153b(2) and 153e of the Act; (d) To give notices, hold hearings and take such other actions as may be necessary under section 153; and (e) To exercise all powers available under the Act and necessary for the performance of these duties, including the issuance of such rules of procedure as may be necessary. (a) All communications regarding proceedings subject to this part should be addressed to: Chairman, Patent Compensation Board, U.S. Department of Energy, Webb Building, Room 1006, 4040 N. Fairfax Drive, Arlington, Virginia 22203. All documents offered for filing shall be accompanied by proof of service upon all parties to the proceeding or their attorneys of record as required by law, rule, or order of the Department. Service on the Department shall be by mail, telegram, or delivery to: Office of the Assistant General Counsel for Patents, U.S. Department of Energy, Washington, DC 20585. (b) Filing by mail or telegram will be deemed to be complete as of the time of deposit in the United States mail or with a telegraph company. (a) Each application shall be signed by the applicant and shall state the applicant's name and address. If the applicant is a corporation, the application shall be signed by an authorized officer of the corporation, and the application shall indicate the state of incorporation. Where the applicant elects to be represented by counsel, a signed notice to that effect shall be filed with the Board. (b) Each application must contain a concise statement of all of the essential facts upon which it is based. No particular form of statement is required. Each application shall be verified by the applicant or by the person having the best knowledge of such facts. In the case of facts stated on information and belief, the source of such information and grounds of belief shall be given. (c) Each application must identify any person whose interest the applicant believes may be affected by the proceeding before the Board. (d) Three copies of each application shall be filed with the Board. However, only one copy of the accompanying exhibits need be filed. (e) The Board will acknowledge the receipt of the application in writing and advise the applicant of the docket number assigned to the application. The Department shall be a party to all proceedings under this part, and the Office of the General Counsel will represent the Department's interests before the Board. In any proceeding under this part, the Board shall admit as a party any person, upon application of such person or on the Board's own initiative, whose interest may be affected by the proceeding. In any proceeding under this part, the Board shall take such steps as necessary pursuant to chapter 12 of the Act and section 181 of the Act to assure compliance with Department security regulations and the common defense. Except as set forth in this part, all Board proceedings, including the hearing and decision, shall be conducted pursuant to the rules of practice of the Department of Energy Board of Contract Appeals, 10 CFR part 1023, modified as the Board may determine to be necessary and appropriate. The decision of the Board in any proceeding under this part shall constitute the final action of the Department on the matter. The records of the Board in cases filed before it, including the pleadings, the transcript, and the final decision, shall be open to public inspection, except to the extent that such records or portions thereof are withheld from disclosure by the Board pursuant to 10 CFR part 1004. When any person in the Department believes that the Department should declare a patent affected with the public interest pursuant to section 153a of the Act, that person shall make such a recommendation to the Under Secretary. If, after consultation with the General Counsel, the Under Secretary agrees with the recommendation, the Under Secretary shall initiate in writing a proceeding under section 153a before the Board. The communication of the Under Secretary to the Board shall identify the patent and state the basis for the proposed declaration. The Board will serve upon the patent owner and all other parties a written notice of the Department's proposed action to declare the patent affected with the public interest, and the notice shall identify the patent and state the basis for the proposed declaration. (a) Any party may, within thirty (30) days after service of the notice or such other time as may be provided by the terms of the notice, file with the Board a written statement in opposition to or in support of the Department's proposed action. Such statement may also include a request for hearing. The statement shall contain a concise description of the facts, law, or any other relevant matter which the party believes should be reviewed by the Board during its consideration of the proposed declaration. If the request for a hearing is timely received, the Board shall call a hearing and provide notice of the time and place to all parties. (b) Failure of all parties to oppose the proposed action or to request a hearing within the time specified in the notice shall be deemed an acquiescence to that action and may result in a declaration by the Board that the patent is affected with the public interest. If a timely request for a hearing is made by any party, the Board will proceed with a hearing and decision. If a hearing is not requested, the Board shall prepare and issue its decision on the record. A patent shall be declared to be affected with the public interest pursuant to section 153a of the Act upon the Board's final decision that: (a) The invention or discovery covered by the patent is of primary importance in the production or utilization of special nuclear material or atomic energy; and (b) The licensing of such invention or discovery under section 153 of the Act is of primary importance to effectuate the policies and purposes of the Act. An applicant for a license pursuant to section 153b(2) of the Act, under a patent which the Department has declared to be affected with the public interest, shall file an application with the Board in accordance with §780.5. The Board will docket the application and serve notice of the docketing upon all parties. Each application shall contain, in addition to the requirements specified in §780.5, the following information: (a) The activities in the production or utilization of special nuclear material or atomic energy to which applicant proposes to apply the patent license; (b) The nature and purpose of the applicant's intended use of the patent license; (c) The relationship of the invention or discovery to the authorized activities to which it is to be applied, including an estimate of the effect on such activities stemming from the grant or denial of the license; (d) Efforts made by the applicant to obtain a patent license from the owner of the patent; (e) Terms, if any, on which the owner of the patent proposes to grant the applicant a patent license; (f) The terms the applicant proposes for the patent license; and (g) A request for either a hearing or a decision on the record. Any party within thirty (30) days after service of the notice of docketing of the application: (a) May file with the Board a response containing a concise statement of the facts or law or any other relevant information which that party believes should be considered by the Board in opposition to or in support of the proposed application; and (b) May file a request for a hearing or for a decision on the record. If any party requests a hearing, the Board will proceed with a hearing and decision. If a hearing is not requested, the Board shall on the basis of the record prepare and issue its decision. A license shall issue to the applicant to use the invention covered by the patent declared to be affected with the public interest pursuant to subsection 153b(2) of the Act upon a final decision that: (a) The activities to which the patent license is proposed to be applied are of primary importance to the applicant's conduct of an activity authorized under the Act; and (b) The applicant has made efforts to obtain reasonable commercial terms and conditions and such efforts have not been successful within a reasonable period of time. The requirement to make such efforts may be waived by the Board in the case of a national emergency or other circumstances of extreme urgency or in cases of public non-commercial use. Where this requirement is waived due to national emergency or other circumstances of extreme urgency, the owner of the patent shall be notified as soon as reasonably practicable. Where this requirement is waived for a public non-commercial use, the owner of the patent shall be notified promptly. [46 FR 39581, Aug. 4, 1981, as amended at 58 FR 68734, Dec. 29, 1993] Following a determination to issue a patent license under section 153b(2) of the Act, the Board shall send the decision to the General Counsel and instruct the General Counsel to issue the license on terms deemed equitable by the Department and generally not less fair than those granted by the patentee or by the Department to similar licensees for comparable use. (a) Upon receipt of the Board's decision and instruction to issue a patent license, the General Counsel shall issue a license which complies with the following: (1) The scope and durations of such use shall be limited to the purpose for which it was authorized; (2) Such use shall be non-exclusive; (3) Such use shall be non-assignable, except with that part of the enterprise or goodwill that enjoys such use; (4) Any such use shall be authorized predominantly for the supply of the U.S. market; and, (5) Authorization for such use shall be liable, subject to adequate protection of the legitimate interests of the persons so authorized, to be terminated if and when the circumstances that led to it cease to exist and are unlikely to recur. (b) The Board shall have the authority to review, on motivated request, the continued existence of these circumstances. The parties will propose and agree on a reasonable royalty fee within a reasonable time as determined by the General Counsel. A reasonable royalty shall provide adequate remuneration for the circumstances of each case, taking into account the economic value of the authorization. If a party does not agree with the terms and conditions of the license as determined by the General Counsel or if a royalty fee cannot be agreed upon within the reasonable time period established by the General Counsel, any party may, within 30 days after the expiration of such time period, initiate a proceeding before the Board, in accordance with subpart E of this part, for a reconsideration of the General Counsel's determination. After the proceeding under subpart E of this part is completed, the General Counsel shall modify the patent license in accordance with the Board's determination. [58 FR 68734, Dec. 29, 1993] An application to the Department, pursuant to section 153c of the Act, for the issuance of a license to use the invention or discovery covered by a patent useful in the production or utilization of special nuclear material or atomic energy shall be filed with the Board in accordance with requirements of §780.5. In addition to the information specified in §780.5, each application shall contain the following: (a) The applicant's contention, with supporting data, that the invention or discovery covered by the patent is of primary importance in the production or utilization of special nuclear material or atomic energy; (b) The applicant's contention, with supporting data, that the licensing of such invention or discovery is of primary importance to the conduct of the activities of the applicant, including information concerning: (1) The activities in the production or utilization of special nuclear material or atomic energy to which applicant proposes to apply the license; (2) The nature and purpose of the applicant's intended use of the patent license; and (3) The relationship of the invention or discovery to the activities to which it is to be applied, including an estimate of the effect of such activities stemming from the grant or denial of the license. (c) The applicant's contention, with supporting data, that the activities to which the patent license are proposed to be applied are of primary importance to the furtherance of policies and purposes of the Act; (d) The applicant's contention, with supporting data, that such applicant cannot otherwise obtain a patent license from the owner of the patent on terms which are reasonable for the applicant's intended use of the patent, including information concerning: (1) Efforts made by applicant to obtain a patent license from the owner of the patent; and (2) Terms, if any, on which the owner of the patent proposed to grant applicant a patent license. (e) The terms the applicant proposes as reasonable for the patent license; and (f) A copy of any license, permit, or lease obtained by the applicant under the procedures outlined in section 153(c) of the Act. Within thirty (30) days after the filing of the application, the Board will serve on all parties a notice of hearing to be held not later than sixty (60) days after the filing of the application. Any party may file a response with the Board containing a concise statement of the facts or law or any other relevant information in opposition to or in support of the application which that party believes should be considered by the Board. Such response must be filed by a party within twenty (20) days after being served a copy of the application. In accordance with section 153d of the Act, the Board shall hold a hearing and issue a final decision on the application. A license shall issue to the applicant to use the invention covered by the patent for the purposes stated in the application upon a final decision that: (a) The invention or discovery covered by the patent is of primary importance in the production or utilization of special nuclear material or atomic energy; (b) The licensing of such invention or discovery is of primary importance to the conduct of the activities of the applicant; (c) The activities to which the patent license is proposed to be applied by such applicant are of primary importance to the furtherance of policies and purposes of the Act; and (d) The applicant has made efforts to obtain reasonable commercial terms and conditions and such efforts have not been successful within a reasonable period of time. The requirement to make such efforts may be waived by the Board in the case of a national emergency or other circumstances of extreme urgency or in cases of public non-commercial use. Where this requirement is waived due to national emergency or other circumstances of extreme urgency, the owner of the patent shall be notified as soon as reasonably practicable. Where this requirement is waived for a public non-commercial use, the owner of the patent shall be notified promptly. [46 FR 39581, Aug. 4, 1981, as amended at 58 FR 68734, Dec. 29, 1993] When the Board decides to issue a patent license under section 153c of the Act, the Board shall send the decision to the General Counsel and instruct the General Counsel to issue the license on terms deemed equitable by the Department and generally not less fair than those granted by the patentee or by the Department to similar licensees for comparable use. (a) Upon receipt of the Board's decision and instruction to issue a patent license, the General Counsel shall issue a license which complies with the following: (1) The scope and durations of such use shall be limited to the purpose for which it was authorized; (2) Such use shall be non-exclusive; (3) Such use shall be non-assignable, except with that part of the enterprise or goodwill that enjoys such use; (4) Any such use shall be authorized predominantly for the supply of the U.S. market; and, (5) Authorization for such use shall be liable, subject to adequate protection of the legitimate interests of the persons so authorized, to be terminated if and when the circumstances that led to it cease to exist and are unlikely to recur. (b) The Board shall have the authority to review, on motivated request, the continued existence of these circumstances. The parties will propose and agree on a reasonable royalty fee within a reasonable time as determined by the General Counsel. A reasonable royalty shall provide adequate remuneration for the circumstances of each case, taking into account the economic value of the authorization. If a party does not agree with the terms and conditions of the license as determined by the General Counsel or if a royalty fee cannot be agreed upon within the reasonable time period established by the General Counsel, any party may, within 30 days after the expiration of such time period, initiate a proceeding before the Board, in accordance with subpart E of this part, for a reconsideration of the General Counsel's determination. After the proceeding under subpart E of this part is completed, the General Counsel shall modify the patent license in accordance with the Board's determination. [46 FR 39581, Aug. 4, 1981, as amended at 58 FR 68734, Dec. 29, 1993] (a) Any owner or licensee of a patent licensed under section 158 or subsections b or e of section 153 of the Act may file an application with the Board for the determination of a reasonable royalty fee. (b) Any owner or licensee of a patent licensed under subsections b or e of section 153 of the Act may file an application with the Board for the modification of any terms and conditions of the license. (c) Any person who has made an invention or discovery useful in the production or utilization of special nuclear material or atomic energy, has complied with the provisions of section 151c, but, under the Act, is not entitled to a royalty for such invention or discovery, may file an application for an award. (d) Any owner of a patent application that contains restricted data not belonging to the United States which the Department has communicated to any foreign nation may make application for just compensation pursuant to section 173 of the Act. (e) Any patent applicant, whose patent is withheld because of a secrecy order issued at the request of the Department may, beginning at the date the patent applicant is notified that, except for such order, the application is otherwise in condition for allowance, apply for compensation for the damage caused by the secrecy order and/or for the use of the invention by the Government, resulting from any disclosure to the Department required by the Invention Secrecy Act. (a) Each application shall contain a statement of the applicant's interest in the patent, patent application, invention or discovery and identify any other claimants of whom the applicant has knowledge. (b) Each application must contain a concise statement of all of the essential facts upon which it is based. No particular form of statement is required, but it will facilitate consideration of the application if the following specific data accompany the application: (1) In the case of an issued patent, a copy of the patent. (2) In the case of a patent application, a copy of the application and of all Patent and Trademark Office actions and responses thereto. (3) In the case of an invention or discovery as to which a report has been filed with the Department pursuant to subsection c of section 151 of the Act, a copy of such report. (4) In the case of an award, the date relied upon as the date of invention. (5) In all cases, a statement of the extent to which the invention or discovery was developed through federally financed research or with other Federal support. (6) In all cases, the degree of the utility, novelty, and importance of the invention or discovery. (7) In all cases, a statement of the actual use by the Federal Government or others of such invention or discovery, to the extent known to the applicant. (8) In all cases, the cost of developing the invention or discovery and acquiring the patent or patent application. (9) The royalty fee proposed, the proposed terms and conditions of a license agreement, or the amount sought as compensation or award, as well as the basis used in calculating such fee, compensation or award and whether a lump sum or periodic payments are sought. (10) In an application for just compensation pursuant to section 173 of the Act, the ownership of the invention that is the subject matter of the patent application at the time the Department communicated the restricted data shall be set forth, and any restricted data contained in the application shall be specifically identified. (11) In an application for compensation under the authority provided in the Invention Secrecy Act (35 U.S.C. 183), for the damage caused by imposition of a secrecy order on a patent application and/or for the use of the invention by the Government, the date of the secrecy order, the date of the notice that the patent application is in condition for allowance, and, if known to the applicant, the date of the first use of the invention by the Government. The Board shall, in its discretion, afford the applicable party an opportunity for a hearing for the presentation of relevant evidence. Thirty (30) days notice shall be given of the time and place of such hearing. After expiration of the notice period, the Board shall proceed with a hearing and render its decision. (a) In deciding a reasonable royalty fee for a patent licensed under section 158 or sections 153b or 153e of the Act, the Board shall consider: (1) The economic value of the compulsory license and the Board shall strive to provide adequate remuneration for the circumstances of each case. (2) Any defense, general or special, that a defendant could plead in an action for infringement; (3) The extent to which such patent was developed through federally financed research or with other Federal support; (4) The degree of utility, novelty, and importance of the invention or discovery; and (5) The cost to the owner of the patent of developing such invention or discovery or of acquiring such patent. (b) In deciding whether or not to grant an award, under section 157 of the Act, for the making of an invention or discovery useful in the production or utilization of special nuclear material or atomic energy, the Board shall take into account the considerations set forth in §780.53(a) of this part and the actual use of such invention or discovery. (c) In deciding whether or not to provide compensation, pursuant to section 173 of the Act, to a person who owns a patent application that contains restricted data not belonging to the United States which the Department has communicated to a foreign nation, the Board shall take into account the considerations set forth in §780.53(b) of this part and the damage to the applicant resulting from such communication. (d) In the course of its review of an application to provide compensation, pursuant to 35 U.S.C. 183, to an applicant whose patent was withheld because of a secrecy order issued at the request of the Department, the Board shall take into account the considerations set forth in §780.53(b) of this part and: (1) The damage sustained by the applicant as a result of the secrecy order; and (2) The use of the invention by the Government resulting from the disclosure of such invention to the Department. [46 FR 39581, Aug. 4, 1981, as amended at 58 FR 68735, Dec. 29, 1993]
Title 10: Energy
PART 780—PATENT COMPENSATION BOARD REGULATIONS
Section Contents
§ 780.1 Scope.
§ 780.2 Definitions.
§ 780.3 Jurisdiction of the Patent Compensation Board.
§ 780.4 Filing and service of documents.
§ 780.5 Applications—General form, content, and filing.
§ 780.6 Department participation.
§ 780.7 Designation of interested persons as parties.
§ 780.8 Security.
§ 780.9 Rules of procedure before the Board.
§ 780.10 Decision of the Board.
§ 780.11 Records of the Board.
§ 780.20 Initiation of proceeding.
§ 780.21 Notice.
§ 780.22 Opposition, support and request for hearing.
§ 780.23 Hearing and decision.
§ 780.24 Criteria for declaring a patent affected with the public interest.
§ 780.30 Filing of application.
§ 780.31 Contents of application.
§ 780.32 Response and request for hearing.
§ 780.33 Hearing and decision.
§ 780.34 Criteria for decision to issue a license.
§ 780.35 Communication of decision to General Counsel.
§ 780.36 Conditions and issuance of license.
§ 780.40 Filing of application.
§ 780.41 Contents of application.
§ 780.42 Notice of hearing.
§ 780.43 Response.
§ 780.44 Hearing and decision.
§ 780.45 Criteria for decision to issue a license.
§ 780.46 Communication of decision to General Counsel.
§ 780.47 Conditions and issuance of license.
§ 780.50 Applicants.
§ 780.51 Form and content.
§ 780.52 Notice and hearing.
§ 780.53 Criteria for decisions for royalties, awards and compensation.
Subpart A—General Provisions
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§ 780.1 Scope.
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§ 780.2 Definitions.
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§ 780.3 Jurisdiction of the Patent Compensation Board.
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§ 780.4 Filing and service of documents.
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§ 780.5 Applications—General form, content, and filing.
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§ 780.6 Department participation.
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§ 780.7 Designation of interested persons as parties.
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§ 780.8 Security.
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§ 780.9 Rules of procedure before the Board.
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§ 780.10 Decision of the Board.
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§ 780.11 Records of the Board.
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Subpart B—Declaring Patents Affected With the Public Interest Under Section 153a of the Atomic Energy Act of 1954
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§ 780.20 Initiation of proceeding.
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§ 780.21 Notice.
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§ 780.22 Opposition, support and request for hearing.
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§ 780.23 Hearing and decision.
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§ 780.24 Criteria for declaring a patent affected with the public interest.
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Subpart C—Application for a License Pursuant to Section 153b(2) of the Atomic Energy Act of 1954
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§ 780.30 Filing of application.
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§ 780.31 Contents of application.
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§ 780.32 Response and request for hearing.
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§ 780.33 Hearing and decision.
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§ 780.34 Criteria for decision to issue a license.
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§ 780.35 Communication of decision to General Counsel.
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§ 780.36 Conditions and issuance of license.
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Subpart D—Application for a License Pursuant to Section 153c of the Atomic Energy Act of 1954
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§ 780.40 Filing of application.
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§ 780.41 Contents of application.
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§ 780.42 Notice of hearing.
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§ 780.43 Response.
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§ 780.44 Hearing and decision.
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§ 780.45 Criteria for decision to issue a license.
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§ 780.46 Communication of decision to General Counsel.
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§ 780.47 Conditions and issuance of license.
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Subpart E—Application for Royalties and Awards Under Section 157 of the Atomic Energy Act of 1954 and Compensation Under Section 173 of the Atomic Energy Act of 1954 and the Invention Secrecy Act (35 U.S.C. 183)
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§ 780.50 Applicants.
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§ 780.51 Form and content.
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§ 780.52 Notice and hearing.
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§ 780.53 Criteria for decisions for royalties, awards and compensation.
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