80_FR_19265 80 FR 19196 - Patents and Other Intellectual Property Rights

80 FR 19196 - Patents and Other Intellectual Property Rights

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

Federal Register Volume 80, Issue 69 (April 10, 2015)

Page Range19196-19199
FR Document2015-08145

NASA has adopted as final, without change, a proposed rule amending its patent waivers regulations to update citations and the patent waiver policy, and to clarify and update the patent waiver procedures, so they are more in line with the National Aeronautics and Space Act (Space Act), the authorizing statute.

Federal Register, Volume 80 Issue 69 (Friday, April 10, 2015)
[Federal Register Volume 80, Number 69 (Friday, April 10, 2015)]
[Rules and Regulations]
[Pages 19196-19199]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-08145]


=======================================================================
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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

14 CFR Part 1245

[Docket No: NASA-2015-0001]
RIN 2700-AE02


Patents and Other Intellectual Property Rights

AGENCY: National Aeronautics and Space Administration (NASA).

ACTION: Direct final rule.

-----------------------------------------------------------------------

SUMMARY: NASA has adopted as final, without change, a proposed rule 
amending its patent waivers regulations to update citations and the 
patent waiver policy, and to clarify and update

[[Page 19197]]

the patent waiver procedures, so they are more in line with the 
National Aeronautics and Space Act (Space Act), the authorizing 
statute.

DATES: This rule is effective May 11, 2015. Comments due on or before 
April 27, 2015. If adverse comments are received, NASA will publish a 
timely withdrawal of the rule in the Federal Register.

ADDRESSES: Comments must be identified with RIN 2700-AE02 and may 
be sent to NASA via the Federal E-Rulemaking Portal: http://www.regulations.gov. Follow the online instructions for submitting 
comments. Please note that NASA will post all comments on the Internet 
with changes, including any personal information provided.

FOR FURTHER INFORMATION CONTACT: Helen M. Galus, Office of the General 
Counsel, NASA Headquarters, telephone (202) 358-3437.

SUPPLEMENTARY INFORMATION:

I. Background

    NASA published a proposed rule in the Federal Register at 79 FR 
60119, on October 6, 2014, to amend its patent waiver regulations to 
update citations to the United States Code, to clarify the requirements 
and procedures for petitioning for a patent waiver so they follow more 
closely the terms of the Space Act, and to add grounds for denial of a 
petition for waiver of foreign rights. No comments were submitted on 
the proposed rule.

II. Discussion and Analysis

    The NASA Office of the General Counsel had no comments to consider. 
NASA has adopted the proposed rule as final with one additional section 
update. After the proposed rule was published, an outdated citation was 
found in §&thnsp;1245.108 License to contractor. In paragraphs (b) 
and (c), 14 CFR 1245.2 was updated to 37 CFR part 404. Also, 
“Government-Owned” was substituted for “NASA” 
in paragraph (b), and “in accordance with applicable regulations 
in” was substituted for “under the Licensing of NASA 
Inventions” in order to clarify the sentence in paragraph (c).

A. Summary of Significant Changes

    No changes were made as a result of public comments.

B. Analysis of Public Comments

    No public comments were submitted.

III. Direct Final Rule

    NASA has determined this rulemaking meets the criteria for a direct 
final rule because it involves adopting a proposed rule amending its 
patent waivers regulations to update citations and the patent waiver 
policy, and to clarify and update the patent waiver procedures, so they 
are more in line with the National Aeronautics and Space Act (Space 
Act), the authorizing statute. This rule has one additional update to 
correct an outdated citation. No opposition to the changes and no 
significant adverse comments are expected. However, if NASA receives 
significant adverse comments, it will withdraw this direct final rule 
by publishing a notice in the Federal Register. A significant adverse 
comment is one that explains: (1) Why the direct final rule is 
inappropriate, including challenges to the rule's underlying premise or 
approach; or (2) why the direct final rule will be ineffective or 
unacceptable without a change. In determining whether a comment 
necessitates withdrawal of this direct final rule, NASA will consider 
whether it warrants a substantive response in a notice and comment 
process.

IV. Regulatory Analysis Section

Paperwork Reduction Act Statement

    This rule does not contain an information collection requirement 
subject to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et 
seq.).

Executive Order 12866 and Executive Order 13563

    Executive Orders 13563 and 12866 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule has not been designated a “significant 
regulatory action” under section 3(f) of Executive Order 12866.

Regulatory Flexibility Act

    It has been certified that this rule is not subject to the 
Regulatory Flexibility Act (5 U.S.C. 601) because it would not, if 
promulgated, have a significant economic impact on a substantial number 
of small entities. The rule sets forth policies and procedures for 
submitting and reviewing petitions for waiver of the Government's 
rights to certain inventions made under government funded contracts, 
pursuant to section 20135(b)(1) of the National Aeronautics and Space 
Act, 51 U.S.C. 20135(b)(1). The provisions do not apply to inventions 
made under any contract, grant, or cooperative agreement with a 
nonprofit organization or small business firm that are afforded the 
disposition of rights as provided in 35 U.S.C. 200-204 (Pub. L. 
96-517, 94 Stat. 3019, 3020, 3022 and 3023; and Pub. L. 
98-620, 98 Stat. 3364-3367). Therefore, the rule will not 
have a significant economic impact on a substantial number of small 
entities.

List of Subjects in 14 CFR Part 1245

    Inventions, Patents and waivers.

    Accordingly, 14 CFR part 1245 is amended as follows:

PART 1245-PATENTS AND OTHER INTELLECTUAL PROPERTY RIGHTS

Subpart 1-Patent and Waiver Regulations

0
1. The authority citation for Part 1245, Subpart 1, is revised to read 
as follows:

    Authority:  51 U.S.C. 20135, 35 U.S.C. 200 et seq.


0
2. Section 1245.100 is revised to read as follows:


§&thnsp;1245.100  Scope.

    This subpart prescribes regulations for the waiver of rights of the 
Government of the United States to inventions made under NASA contract 
in conformity with section 20135 of the National Aeronautics and Space 
Act (51 U.S.C. Chapter 201).

0
3. Section 1245.101 is revised to read as follows:


§&thnsp;1245.101  Applicability.

    The provisions of the subpart apply to all inventions made or which 
may be made under conditions enabling the Administrator to determine 
that the rights therein reside in the Government of the United States 
under section 20135(b)(1) of the National Aeronautics and Space Act, 51 
U.S.C. 20135(b)(1). The provisions do not apply to inventions made 
under any contract, grant, or cooperative agreement with a nonprofit 
organization or small business firm that are afforded the disposition 
of rights as provided in 35 U.S.C. 200-204 (Pub. L. 96-517, 
94 Stat. 3019, 3020, 3022 and 3023; and Pub. L. 98-620, 98 Stat. 
3364-3367).

0
4. Section 1245.102 is amended by revising paragraph (c), redesignating 
paragraphs (d) through (j) as paragraphs (e) through (k), and adding 
new paragraph (d) to read as follows:

[[Page 19198]]

§&thnsp;1245.102  Definitions and terms.

* * * * *
    (c) Invention means any, new and useful process, machine, 
manufacture, or composition of matter, or any new and useful 
improvement thereof, or any variety of plant, which is or may be 
patentable under the Patent Laws of the United States of America or any 
foreign country.
    (d) Class of inventions means inventions directed to a particular 
process, machine, manufacture, or composition of matter, or to a 
narrowly drawn, focused area of technology.
* * * * *

0
5. Section 1245.103 is amended by revising paragraphs (a) and (b) to 
read as follows:


§&thnsp;1245.103  Policy.

    (a) In implementing the provisions of section 20135(g) of the 
National Aeronautics and Space Act (51 U.S.C. Chapter 201), and in 
determining when the interests of the United States would be served by 
waiver of all or any part of the rights of the United States in an 
invention or class of inventions made in the performance of work under 
NASA contracts, the Administrator will be guided by the objectives set 
forth in the National Aeronautics and Space Act, by the basic policy of 
the Presidential Memorandum and Statement of Government Patent Policy 
to the Heads of the Executive Departments and agencies dated February 
18, 1983, by the goals and objectives of its current Authorization Act, 
Strategic Plan, and other pertinent National policies or laws, such as 
the National Space Policy of the United States of America. Any such 
waiver may be made upon such terms and under such conditions as the 
Administrator shall determine to be required for the protection of the 
interests of the United States. Among the most important goals are to 
provide incentives to foster inventiveness and encourage the reporting 
of inventions made under NASA contracts, to provide for the widest 
practicable dissemination of new technology resulting from NASA 
programs, and to promote early utilization, expeditious development, 
and continued availability of this new technology for commercial 
purposes and the public benefit. In applying this regulation, both the 
need for incentives to draw forth private initiatives and the need to 
promote healthy competition in industry must be weighed.
    (b) Several different situations arise when waiver of all or any 
part of the rights of the United States with respect to an invention or 
class of invention may be requested and are prescribed in 
§§&thnsp;1245.104 through 1245.106. Under 
§&thnsp;1245.104, advance waiver of any or all of the rights of 
the United States with respect to any invention or class of inventions 
which may be made under a contract may be requested prior to the 
execution of the contract, or within 30 days after execution of the 
contract. Waiver of rights to an identified invention made and reported 
under a contract are to be requested under §&thnsp;1245.105, and 
may be requested under this provision even though a request under 
§&thnsp;1245.104 was not made, or if made, was not granted. Waiver 
of foreign rights under §&thnsp;1245.106 may be requested 
concurrently with domestic rights under §&thnsp;1245.104 or 
§&thnsp;1245.105, or may be made independently.
* * * * *

0
6. Section 1245.104 is amended by:
0
a. Revising paragraphs (a), (b) introductory text, (b)(2), (b)(3) 
introductory text, (b)(3)(v), (c), and (d);
0
b. Removing paragraph (e); and
0
c. Redesignating paragraph (f) as paragraph (e).
    The revisions read as follows:


§&thnsp;1245.104  Advance waivers.

    (a) The provisions of this section apply to petitions for waiver of 
domestic rights of the United States with respect to any invention or 
class of inventions which may be made under a contract.
    (b) The NASA Inventions and Contributions Board normally will 
recommend grant of a request for advance waiver of domestic rights 
submitted prior to execution of contract or within 30 days after 
execution of the contract unless the Board finds that the interests of 
the United States will be better served by restricting or denying all 
or part of the requested rights in one or more of the following 
situations:
* * * * *
    (2) When a determination has been made by Government authority 
which is authorized by statute or Executive order to conduct foreign 
intelligence or counter-intelligence activities that the restriction or 
denial of the requested rights to any inventions made in the 
performance of work under the contract is necessary to protect the 
security of such activities; or
    (3) Where the Board finds that exceptional circumstances exist, 
such that restriction or denial of the requested rights will better 
promote one or more of the following objectives:
* * * * *
    (v) Ensuring that the Government retains sufficient rights in 
federally supported inventions to meet the needs of the Government and 
protect the public against nonuse or unreasonable use of inventions.
    (c)(1) An advance waiver, when granted, will be subject to the 
reservations set forth in §&thnsp;1245.107. Normally, the 
reservations of §&thnsp;1245.107(a), License to the Government, 
and §&thnsp;1245.107(b), March-in rights, will apply. However, 
should one or more of the situations set forth in paragraphs (b)(1) 
through (b)(3), of this section exist, rather than denying the advance 
waiver request, the Board may recommend granting to the contractor only 
part of the requested rights, to the extent necessary to address the 
particular situation, consistent with the policy and goals of 
§&thnsp;1245.103. In that event, the waiver grant will be subject 
to additional reservations as provided for in §&thnsp;1245.107(c).
    (2) To meet the National Aeronautics and Space Act standard of 
“any invention or class of inventions,” for advance 
waivers, the petition shall identify the invention(s) and/or class(es) 
of inventions that the Contractor believes will be made under the 
contract and for which waiver of rights is being requested. Therefore, 
the petition must be directed to a specific invention(s) or to 
inventions directed to a particular process, machine, manufacture, or 
composition of matter, or to a narrowly drawn, focused area(s) of 
technology.
    (3) An advance waiver, when granted, will apply only to inventions 
reported to NASA under the applicable terms of the contract and a 
designation made within 6 months of the time of reporting (or a 
reasonable time thereafter permitted for good cause shown) that the 
contractor elects title to the invention and intends to file or has 
filed a U.S. patent application. Such election will be made by 
notification in writing to the patent representative designated in the 
contract. Title to all other inventions made under the contract are 
subject to section 20135(b)(1) of the National Aeronautics and Space 
Act, 51 U.S.C. 20135(b)(1). The granting of the advance waiver does not 
otherwise relieve a contractor of any of the invention identification 
or reporting requirements set forth in the applicable patent rights 
clause in the contract.
    (4) The advance waiver shall extend to the invention claimed in any 
patent application filed on the reported invention, including any 
subsequent divisional or continuation application thereof, provided the 
claims of the subsequent application do not substantially change the 
scope of the reported invention.
    (d) When a petition for waiver is submitted under paragraph (b) of 
this section, prior to contract execution, it will be processed 
expeditiously so that a decision on the petition may be

[[Page 19199]]

reached prior to execution of the contract. However, if there is 
insufficient time or insufficient information is presented, or for 
other reasons which do not permit a recommendation to be made without 
unduly delaying execution of the contract, the Board will inform the 
contracting officer that no recommendation can be made prior to 
contract execution and the reasons therefor. The contracting officer 
will then notify the petitioner of the Board's action.
* * * * *

0
7. Section 1245.106 is amended by revising paragraphs (c) and (d) to 
read as follows:
* * * * *


§&thnsp;1245.106  Waiver of foreign rights.

* * * * *
    (c) The Board will normally recommend the waiver of foreign rights 
be granted under paragraph (a) or paragraph (b) of this section in any 
designated country unless:
    (1) The Board finds that exceptional circumstances exist, such that 
restriction or denial of the requested foreign rights will better 
promote one or more of the objectives set forth in 
§&thnsp;1245.104(b)(3)(i) through (v); or
    (2) The Board finds that the economic interests of the United 
States will not be served thereby; or unless
    (3) In the case of an individual identified invention under 
paragraph (b) of this section, NASA has determined, prior to the 
request, to file a patent application in the designated country.
    (d) If, subsequent to the granting of the petition for foreign 
rights, the petitioner requests and designates additional countries in 
which it wishes to secure patents, the Chairperson may recommend such 
request, in whole or in part, without further action by the Board.

0
8. Section 1245.107 is amended by revising the introductory text of 
paragraph (b) to read as follows:


§&thnsp;1245.107  Reservations.

* * * * *
    (b) March-in rights. For any invention for which waiver of rights 
has been granted under this subpart, NASA has the same right as set 
forth in 35 U.S.C. 203 and 210, with the procedures set forth in 
§&thnsp;1245.117 and 37 CFR 401.6, to require the contractor, an 
assignee, or exclusive licensee of the invention to grant a 
nonexclusive, partially exclusive, or exclusive license in any field of 
use to a responsible applicant or applicants, upon terms that are 
reasonable under the circumstances, and if the contractor, assignee, or 
exclusive licensee refuses such a request, NASA has the right to grant 
such a license itself if NASA determines that:
* * * * *

0
9. Section 1245.108 is amended by revising the first sentence of 
paragraph (b) and the last sentence of paragraph (c).


§&thnsp;1245.108  License to contractor.

* * * * *
    (b) The contractor's domestic license may be revoked or modified by 
the Administrator to the extent necessary to achieve expeditious 
practical application of the invention pursuant to an application for 
an exclusive license submitted in accordance with the Licensing of 
Government-Owned Inventions (37 CFR part 404). * * *
    (c) * * * The contractor shall have the right to appeal, 
in accordance with applicable regulations in 37 CFR part 404, any 
decision concerning the revocation or modification of its license.

0
10. Section 1245.110 is amended by redesignating paragraphs (b) and (c) 
as paragraphs (c) and (d), and by adding new paragraph (b) to read as 
follows:


§&thnsp;1245.110  Content of petitions.

* * * * *
    (b) Advance waiver petitions shall also identify the invention(s) 
and/or class(es) of inventions that the Contractor believes will be 
made under the contract and for which waiver of rights is being 
requested, in accordance with §&thnsp;1245.104(c)(2).
* * * * *

0
11. Section 1245.112 is amended by revising paragraph (a) to read as 
follows:


§&thnsp;1245.112  Notice of proposed Board action and 
reconsideration.

    (a) Notice. Except as provided by §&thnsp;1245.104(d), the 
Board will notify the petitioner, through the contracting officer, with 
respect to petitions for advance waiver prior to contract execution, 
and directly to the petitioner for all other petitions:
    (1) When it proposes to recommend to the Administrator that the 
petition be:
    (i) Granted in an extent different from that requested; or
    (ii) Denied.
    (2) Of the reasons for the recommended action adverse to or 
different from the waiver of rights requested by the petitioner.
* * * * *

0
12. Section 1245.116 is amended by revising paragraph (b) to read as 
follows:


§&thnsp;1245.116  Miscellaneous provisions.

* * * * *
    (b) Statement of Government rights. The waiver recipient shall 
include, within the specification of any United States patent 
application and any patent issuing thereon for a waived invention, the 
following statement:
    The invention described herein was made in the performance of work 
under NASA Contract No. lll, and is subject to the provisions of 
Section 20135 of the National Aeronautics and Space Act (51 U.S.C. 
Chapter 201).
* * * * *

0
13. Section 1245.117 is amended by revising paragraph (a) to read as 
follows:


§&thnsp;1245.117  March-in and waiver revocation procedures.

    (a) The exercise of march-in procedures shall be in conformance 
with 35 U.S.C. 203 and the applicable provisions of 37 CFR 401.6, 
entitled “Exercise of march-in rights for inventions made by 
nonprofit organizations and small business firms.”
* * * * *

Nanette Jennings,
Federal Register Liaison Officer.
[FR Doc. 2015-08145 Filed 4-9-15; 8:45 am]
 BILLING CODE 7510-13-P



                                              19196                Federal Register / Vol. 80, No. 69 / Friday, April 10, 2015 / Rules and Regulations

                                              affiliated CDFI. This regulatory revision               have upon the human environment. It is                business activity as a result of analysis
                                              affects only the Affiliate’s ability to meet            the determination of the CDFI Fund that               of its financial statements, organizing
                                              the financing entity requirement for                    the interim rule does not constitute a                documents, and any other information
                                              CDFI certification: said entity must meet               major federal action significantly                    required to be submitted as part of its
                                              the other five certification criteria in                affecting the quality of the human                    application. In conducting such
                                              accordance with the existing regulation.                environment and, in accordance with                   analysis, the CDFI Fund may take into
                                                 Further, in this revised regulation, the             the NEPA and the CDFI Fund                            consideration an Applicant’s total assets
                                              CDFI Fund reserves the authority, in its                Environmental Quality Regulations, 12                 and its use of personnel.
                                              discretion, to set additional parameters                CFR part 1815, neither an                               (ii) For the sole purpose of
                                              and restrictions on the financing entity                Environmental Assessment nor an                       participating as an Eligible CDFI in the
                                              requirement, which will be set forth in                 Environmental Impact Statement is                     CDFI Bond Guarantee Program (see 12
                                              the Notice of Guarantee Availability                    required.                                             CFR part 1808), an Affiliate of a
                                              (NOGA) for a particular application                                                                           Controlling CDFI may be deemed to
                                              round of the CDFI Bond Guarantee                        Administrative Procedure Act
                                                                                                                                                            meet the financing entity requirement of
                                              Program. Such additional parameters or                    Because this interim rule relates to                this subsection by relying on the CDFI
                                              restrictions may include, for example,                  loans and grants, notice and public                   Fund’s determination that the
                                              (i) a deadline by which the Affiliate                   procedure and a delayed effective date                Controlling CDFI has met said
                                              must meet the financing entity                          are not required pursuant to the                      requirement; provided, however, that
                                              requirement based on its own merit or                   Administrative Procedure Act, 5 U.S.C.                the CDFI Fund reserves the right, in its
                                              activity, rather than relying on that of                553(a)(2).                                            sole discretion, to set additional
                                              the affiliated CDFI, and (ii) a                         Catalogue of Federal Domestic                         parameters and restrictions on such,
                                              requirement that the affiliated CDFI                    Assistance Number                                     which parameters and restrictions shall
                                              must maintain its CDFI certification                                                                          be set forth in the applicable Notice of
                                              until such time that the Affiliate is able                Community Development Financial
                                                                                                      Institutions Program—21.020.                          Guarantee Availability for a CDFI Bond
                                              to meet all CDFI certification                                                                                Guarantee Program application round.
                                              requirements based on its own merit or                  List of Subjects in 12 CFR Part 1805                    (iii) Further, for the sole purpose of
                                              activity.                                                                                                     participating as an Eligible CDFI in the
                                                                                                        Community development, Grant
                                              Regulatory Analysis and Notices                         programs-housing and community                        CDFI Bond Guarantee Program, the
                                                                                                      development, Loan programs-housing                    provision of Financial Products,
                                              Executive Order 12866                                                                                         Development Services, and/or other
                                                                                                      and community development, Reporting
                                                 It has been determined that this rule                and recordkeeping requirements, Small                 similar financing by an Affiliate of a
                                              is not a significant regulatory action as               businesses.                                           Controlling CDFI need not be arms-
                                              defined in Executive Order 12866.                                                                             length if such transaction is by and
                                              Therefore, a regulatory assessment is not               Amendment to the Regulations                          between the Affiliate and the
                                              required.                                                 For the reasons discussed in the                    Controlling CDFI, pursuant to an
                                                                                                      preamble, the CDFI Fund is amending                   operating agreement that includes
                                              Regulatory Flexibility Act
                                                                                                      12 CFR chapter XVII, part 1805 as                     management and ownership provisions
                                                Because no notice of proposed                         follows:                                              and is in form and substance that is
                                              rulemaking is required under the                                                                              acceptable to the CDFI Fund.
                                              Administrative Procedure Act (5 U.S.C.                  PART 1805—COMMUNITY
                                                                                                                                                            *      *    *      *     *
                                              553) or any other law, the Regulatory                   DEVELOPMENT FINANCIAL
                                              Flexibility Act does not apply.                         INSTITUTIONS PROGRAM                                    Dated: April 7, 2015.
                                                                                                                                                            Mary Ann Donovan,
                                              Paperwork Reduction Act                                 ■ 1. The authority citation for part 1805             Director, Community Development Financial
                                                The collections of information                        continues to read as follows:                         Institutions Fund.
                                              contained in this interim rule have been                  Authority: 12 U.S.C. 4703, 4703 note, 4710,         [FR Doc. 2015–08356 Filed 4–9–15; 8:45 am]
                                              previously reviewed and approved by                     4717; and 31 U.S.C. 321.                              BILLING CODE 4810–70–P
                                              the Office of Management and Budget
                                              (OMB) in accordance with the                            ■ 2. Section 1805.201(b)(2) is revised to
                                              Paperwork Reduction Act of 1995 and                     read as follows:
                                              assigned OMB Control Numbers 1559–                                                                            NATIONAL AERONAUTICS AND
                                                                                                      § 1805.201 Certification as a Community               SPACE ADMINISTRATION
                                              0006, 1559–0021, and 1559–0022. An                      Development Financial Institution.
                                              agency may not conduct or sponsor, and                  *     *       *     *  *                              14 CFR Part 1245
                                              a person is not required to respond to,                   (b) * * *
                                              a collection of information unless it                     (2) Financing entity. (i) A CDFI shall              [Docket No: NASA–2015–0001]
                                              displays a valid control number                         be an entity whose predominant                        RIN 2700–AE02
                                              assigned by OMB. This document                          business activity is the provision, in
                                              restates the collections of information                 arms-length transactions, of Financial                Patents and Other Intellectual Property
                                              without substantive change.                             Products, Development Services, and/or                Rights
                                              National Environmental Policy Act                       other similar financing. An Applicant
                                                                                                      may demonstrate that it is such an                    AGENCY: National Aeronautics and
                                                This revised interim rule has been                    entity if it is a(n):                                 Space Administration (NASA).
rljohnson on DSK3VPTVN1PROD with RULES




                                              reviewed in accordance with 12 CFR                        (A) Depository Institution Holding                  ACTION: Direct final rule.
                                              part 1815. The CDFI Fund’s                              Company;
                                              Environmental Regulations under the                       (B) Insured Depository Institution,                 SUMMARY:  NASA has adopted as final,
                                              National Environmental Protection Act                   Insured Credit Union, or State-Insured                without change, a proposed rule
                                              of 1969 (NEPA) require that the CDFI                    Credit Union; or                                      amending its patent waivers regulations
                                              Fund adequately consider the                              (C) Organization that is deemed by the              to update citations and the patent
                                              cumulative impact proposed activities                   CDFI Fund to have such a predominant                  waiver policy, and to clarify and update


                                         VerDate Sep<11>2014   15:04 Apr 09, 2015   Jkt 235001   PO 00000   Frm 00002   Fmt 4700   Sfmt 4700   E:\FR\FM\10APR1.SGM   10APR1


                                                                   Federal Register / Vol. 80, No. 69 / Friday, April 10, 2015 / Rules and Regulations                                           19197

                                              the patent waiver procedures, so they                   direct final rule because it involves                 to section 20135(b)(1) of the National
                                              are more in line with the National                      adopting a proposed rule amending its                 Aeronautics and Space Act, 51 U.S.C.
                                              Aeronautics and Space Act (Space Act),                  patent waivers regulations to update                  20135(b)(1). The provisions do not
                                              the authorizing statute.                                citations and the patent waiver policy,               apply to inventions made under any
                                              DATES: This rule is effective May 11,                   and to clarify and update the patent                  contract, grant, or cooperative
                                              2015. Comments due on or before April                   waiver procedures, so they are more in                agreement with a nonprofit organization
                                              27, 2015. If adverse comments are                       line with the National Aeronautics and                or small business firm that are afforded
                                              received, NASA will publish a timely                    Space Act (Space Act), the authorizing                the disposition of rights as provided in
                                              withdrawal of the rule in the Federal                   statute. This rule has one additional                 35 U.S.C. 200–204 (Pub. L. 96–517, 94
                                              Register.                                               update to correct an outdated citation.               Stat. 3019, 3020, 3022 and 3023; and
                                                                                                      No opposition to the changes and no                   Pub. L. 98–620, 98 Stat. 3364–3367).
                                              ADDRESSES: Comments must be
                                                                                                      significant adverse comments are                      Therefore, the rule will not have a
                                              identified with RIN 2700–AE02 and
                                                                                                      expected. However, if NASA receives                   significant economic impact on a
                                              may be sent to NASA via the Federal E-
                                                                                                      significant adverse comments, it will                 substantial number of small entities.
                                              Rulemaking Portal: http://
                                                                                                      withdraw this direct final rule by
                                              www.regulations.gov. Follow the online                                                                        List of Subjects in 14 CFR Part 1245
                                                                                                      publishing a notice in the Federal
                                              instructions for submitting comments.
                                                                                                      Register. A significant adverse comment                 Inventions, Patents and waivers.
                                              Please note that NASA will post all
                                                                                                      is one that explains: (1) Why the direct                Accordingly, 14 CFR part 1245 is
                                              comments on the Internet with changes,
                                                                                                      final rule is inappropriate, including                amended as follows:
                                              including any personal information
                                                                                                      challenges to the rule’s underlying
                                              provided.
                                                                                                      premise or approach; or (2) why the                   PART 1245—PATENTS AND OTHER
                                              FOR FURTHER INFORMATION CONTACT:                        direct final rule will be ineffective or              INTELLECTUAL PROPERTY RIGHTS
                                              Helen M. Galus, Office of the General                   unacceptable without a change. In
                                              Counsel, NASA Headquarters,                             determining whether a comment                         Subpart 1—Patent and Waiver
                                              telephone (202) 358–3437.                               necessitates withdrawal of this direct                Regulations
                                              SUPPLEMENTARY INFORMATION:                              final rule, NASA will consider whether
                                                                                                      it warrants a substantive response in a               ■ 1. The authority citation for Part 1245,
                                              I. Background                                                                                                 Subpart 1, is revised to read as follows:
                                                                                                      notice and comment process.
                                                 NASA published a proposed rule in                                                                             Authority: 51 U.S.C. 20135, 35 U.S.C. 200
                                              the Federal Register at 79 FR 60119, on                 IV. Regulatory Analysis Section
                                                                                                                                                            et seq.
                                              October 6, 2014, to amend its patent                    Paperwork Reduction Act Statement
                                              waiver regulations to update citations to                                                                     ■ 2. Section 1245.100 is revised to read
                                              the United States Code, to clarify the                    This rule does not contain an                       as follows:
                                              requirements and procedures for                         information collection requirement
                                              petitioning for a patent waiver so they                 subject to the Paperwork Reduction Act                § 1245.100    Scope.
                                              follow more closely the terms of the                    of 1995 (44 U.S.C. 3501 et seq.).                       This subpart prescribes regulations for
                                              Space Act, and to add grounds for                       Executive Order 12866 and Executive                   the waiver of rights of the Government
                                              denial of a petition for waiver of foreign              Order 13563                                           of the United States to inventions made
                                              rights. No comments were submitted on                                                                         under NASA contract in conformity
                                                                                                         Executive Orders 13563 and 12866                   with section 20135 of the National
                                              the proposed rule.
                                                                                                      direct agencies to assess all costs and               Aeronautics and Space Act (51 U.S.C.
                                              II. Discussion and Analysis                             benefits of available regulatory                      Chapter 201).
                                                 The NASA Office of the General                       alternatives and, if regulation is
                                                                                                      necessary, to select regulatory                       ■ 3. Section 1245.101 is revised to read
                                              Counsel had no comments to consider.                                                                          as follows:
                                              NASA has adopted the proposed rule as                   approaches that maximize net benefits
                                              final with one additional section                       (including potential economic,                        § 1245.101    Applicability.
                                              update. After the proposed rule was                     environmental, public health and safety
                                                                                                      effects, distributive impacts, and                       The provisions of the subpart apply to
                                              published, an outdated citation was                                                                           all inventions made or which may be
                                              found in § 1245.108 License to                          equity). Executive Order 13563
                                                                                                      emphasizes the importance of                          made under conditions enabling the
                                              contractor. In paragraphs (b) and (c), 14                                                                     Administrator to determine that the
                                              CFR 1245.2 was updated to 37 CFR part                   quantifying both costs and benefits, of
                                                                                                      reducing costs, of harmonizing rules,                 rights therein reside in the Government
                                              404. Also, ‘‘Government-Owned’’ was                                                                           of the United States under section
                                              substituted for ‘‘NASA’’ in paragraph                   and of promoting flexibility. This rule
                                                                                                      has not been designated a ‘‘significant               20135(b)(1) of the National Aeronautics
                                              (b), and ‘‘in accordance with applicable                                                                      and Space Act, 51 U.S.C. 20135(b)(1).
                                              regulations in’’ was substituted for                    regulatory action’’ under section 3(f) of
                                                                                                      Executive Order 12866.                                The provisions do not apply to
                                              ‘‘under the Licensing of NASA                                                                                 inventions made under any contract,
                                              Inventions’’ in order to clarify the                    Regulatory Flexibility Act                            grant, or cooperative agreement with a
                                              sentence in paragraph (c).                                                                                    nonprofit organization or small business
                                                                                                         It has been certified that this rule is
                                              A. Summary of Significant Changes                       not subject to the Regulatory Flexibility             firm that are afforded the disposition of
                                                                                                      Act (5 U.S.C. 601) because it would not,              rights as provided in 35 U.S.C. 200–204
                                                No changes were made as a result of                                                                         (Pub. L. 96–517, 94 Stat. 3019, 3020,
                                              public comments.                                        if promulgated, have a significant
                                                                                                                                                            3022 and 3023; and Pub. L. 98–620, 98
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                                                                                                      economic impact on a substantial
                                              B. Analysis of Public Comments                          number of small entities. The rule sets               Stat. 3364–3367).
                                                No public comments were submitted.                    forth policies and procedures for                     ■ 4. Section 1245.102 is amended by
                                                                                                      submitting and reviewing petitions for                revising paragraph (c), redesignating
                                              III. Direct Final Rule                                  waiver of the Government’s rights to                  paragraphs (d) through (j) as paragraphs
                                                 NASA has determined this                             certain inventions made under                         (e) through (k), and adding new
                                              rulemaking meets the criteria for a                     government funded contracts, pursuant                 paragraph (d) to read as follows:


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                                              19198                  Federal Register / Vol. 80, No. 69 / Friday, April 10, 2015 / Rules and Regulations

                                              § 1245.102       Definitions and terms.                   §§ 1245.104 through 1245.106. Under                       (c)(1) An advance waiver, when
                                              *     *     *     *    *                                  § 1245.104, advance waiver of any or all               granted, will be subject to the
                                                (c) Invention means any, new and                        of the rights of the United States with                reservations set forth in § 1245.107.
                                              useful process, machine, manufacture,                     respect to any invention or class of                   Normally, the reservations of
                                              or composition of matter, or any new                      inventions which may be made under a                   § 1245.107(a), License to the
                                              and useful improvement thereof, or any                    contract may be requested prior to the                 Government, and § 1245.107(b), March-
                                              variety of plant, which is or may be                      execution of the contract, or within 30                in rights, will apply. However, should
                                              patentable under the Patent Laws of the                   days after execution of the contract.                  one or more of the situations set forth
                                              United States of America or any foreign                   Waiver of rights to an identified                      in paragraphs (b)(1) through (b)(3), of
                                              country.                                                  invention made and reported under a                    this section exist, rather than denying
                                                (d) Class of inventions means                           contract are to be requested under                     the advance waiver request, the Board
                                              inventions directed to a particular                       § 1245.105, and may be requested under                 may recommend granting to the
                                              process, machine, manufacture, or                         this provision even though a request                   contractor only part of the requested
                                              composition of matter, or to a narrowly                   under § 1245.104 was not made, or if                   rights, to the extent necessary to address
                                              drawn, focused area of technology.                        made, was not granted. Waiver of                       the particular situation, consistent with
                                              *     *     *     *    *                                  foreign rights under § 1245.106 may be                 the policy and goals of § 1245.103. In
                                                                                                        requested concurrently with domestic                   that event, the waiver grant will be
                                              ■ 5. Section 1245.103 is amended by
                                                                                                        rights under § 1245.104 or § 1245.105, or              subject to additional reservations as
                                              revising paragraphs (a) and (b) to read                   may be made independently.                             provided for in § 1245.107(c).
                                              as follows:                                                                                                         (2) To meet the National Aeronautics
                                                                                                        *     *     *      *   *
                                              § 1245.103       Policy.                                  ■ 6. Section 1245.104 is amended by:
                                                                                                                                                               and Space Act standard of ‘‘any
                                                                                                        ■ a. Revising paragraphs (a), (b)                      invention or class of inventions,’’ for
                                                 (a) In implementing the provisions of
                                                                                                        introductory text, (b)(2), (b)(3)                      advance waivers, the petition shall
                                              section 20135(g) of the National
                                                                                                        introductory text, (b)(3)(v), (c), and (d);            identify the invention(s) and/or class(es)
                                              Aeronautics and Space Act (51 U.S.C.
                                                                                                        ■ b. Removing paragraph (e); and                       of inventions that the Contractor
                                              Chapter 201), and in determining when
                                                                                                        ■ c. Redesignating paragraph (f) as                    believes will be made under the contract
                                              the interests of the United States would                                                                         and for which waiver of rights is being
                                              be served by waiver of all or any part                    paragraph (e).
                                                                                                           The revisions read as follows:                      requested. Therefore, the petition must
                                              of the rights of the United States in an                                                                         be directed to a specific invention(s) or
                                              invention or class of inventions made in                  § 1245.104        Advance waivers.                     to inventions directed to a particular
                                              the performance of work under NASA                           (a) The provisions of this section                  process, machine, manufacture, or
                                              contracts, the Administrator will be                      apply to petitions for waiver of domestic              composition of matter, or to a narrowly
                                              guided by the objectives set forth in the                 rights of the United States with respect               drawn, focused area(s) of technology.
                                              National Aeronautics and Space Act, by                    to any invention or class of inventions                   (3) An advance waiver, when granted,
                                              the basic policy of the Presidential                      which may be made under a contract.                    will apply only to inventions reported
                                              Memorandum and Statement of                                  (b) The NASA Inventions and                         to NASA under the applicable terms of
                                              Government Patent Policy to the Heads                     Contributions Board normally will                      the contract and a designation made
                                              of the Executive Departments and                          recommend grant of a request for                       within 6 months of the time of reporting
                                              agencies dated February 18, 1983, by the                  advance waiver of domestic rights                      (or a reasonable time thereafter
                                              goals and objectives of its current                       submitted prior to execution of contract               permitted for good cause shown) that
                                              Authorization Act, Strategic Plan, and                    or within 30 days after execution of the               the contractor elects title to the
                                              other pertinent National policies or                      contract unless the Board finds that the               invention and intends to file or has filed
                                              laws, such as the National Space Policy                   interests of the United States will be                 a U.S. patent application. Such election
                                              of the United States of America. Any                      better served by restricting or denying                will be made by notification in writing
                                              such waiver may be made upon such                         all or part of the requested rights in one             to the patent representative designated
                                              terms and under such conditions as the                    or more of the following situations:                   in the contract. Title to all other
                                              Administrator shall determine to be                       *      *     *     *    *                              inventions made under the contract are
                                              required for the protection of the                           (2) When a determination has been                   subject to section 20135(b)(1) of the
                                              interests of the United States. Among                     made by Government authority which is                  National Aeronautics and Space Act, 51
                                              the most important goals are to provide                   authorized by statute or Executive order               U.S.C. 20135(b)(1). The granting of the
                                              incentives to foster inventiveness and                    to conduct foreign intelligence or                     advance waiver does not otherwise
                                              encourage the reporting of inventions                     counter-intelligence activities that the               relieve a contractor of any of the
                                              made under NASA contracts, to provide                     restriction or denial of the requested                 invention identification or reporting
                                              for the widest practicable dissemination                  rights to any inventions made in the                   requirements set forth in the applicable
                                              of new technology resulting from NASA                     performance of work under the contract                 patent rights clause in the contract.
                                              programs, and to promote early                            is necessary to protect the security of                   (4) The advance waiver shall extend
                                              utilization, expeditious development,                     such activities; or                                    to the invention claimed in any patent
                                              and continued availability of this new                       (3) Where the Board finds that                      application filed on the reported
                                              technology for commercial purposes                        exceptional circumstances exist, such                  invention, including any subsequent
                                              and the public benefit. In applying this                  that restriction or denial of the                      divisional or continuation application
                                              regulation, both the need for incentives                  requested rights will better promote one               thereof, provided the claims of the
                                              to draw forth private initiatives and the                 or more of the following objectives:                   subsequent application do not
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                                              need to promote healthy competition in                    *      *     *     *    *                              substantially change the scope of the
                                              industry must be weighed.                                    (v) Ensuring that the Government                    reported invention.
                                                 (b) Several different situations arise                 retains sufficient rights in federally                    (d) When a petition for waiver is
                                              when waiver of all or any part of the                     supported inventions to meet the needs                 submitted under paragraph (b) of this
                                              rights of the United States with respect                  of the Government and protect the                      section, prior to contract execution, it
                                              to an invention or class of invention                     public against nonuse or unreasonable                  will be processed expeditiously so that
                                              may be requested and are prescribed in                    use of inventions.                                     a decision on the petition may be


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                                                                     Federal Register / Vol. 80, No. 69 / Friday, April 10, 2015 / Rules and Regulations                                               19199

                                              reached prior to execution of the                         and if the contractor, assignee, or                       (b) Statement of Government rights.
                                              contract. However, if there is                            exclusive licensee refuses such a                      The waiver recipient shall include,
                                              insufficient time or insufficient                         request, NASA has the right to grant                   within the specification of any United
                                              information is presented, or for other                    such a license itself if NASA determines               States patent application and any patent
                                              reasons which do not permit a                             that:                                                  issuing thereon for a waived invention,
                                              recommendation to be made without                         *     *     *     *      *                             the following statement:
                                              unduly delaying execution of the                          ■ 9. Section 1245.108 is amended by                       The invention described herein was
                                              contract, the Board will inform the                       revising the first sentence of paragraph               made in the performance of work under
                                              contracting officer that no                               (b) and the last sentence of paragraph                 NASA Contract No. lll, and is subject to
                                              recommendation can be made prior to                       (c).                                                   the provisions of Section 20135 of the
                                              contract execution and the reasons                                                                               National Aeronautics and Space Act (51
                                              therefor. The contracting officer will                    § 1245.108        License to contractor.               U.S.C. Chapter 201).
                                              then notify the petitioner of the Board’s                 *     *     *    *      *                              *      *    *    *     *
                                              action.                                                     (b) The contractor’s domestic license
                                                                                                                                                               ■ 13. Section 1245.117 is amended by
                                              *     *     *    *     *                                  may be revoked or modified by the
                                                                                                                                                               revising paragraph (a) to read as follows:
                                                                                                        Administrator to the extent necessary to
                                              ■ 7. Section 1245.106 is amended by
                                                                                                        achieve expeditious practical                          § 1245.117 March-in and waiver revocation
                                              revising paragraphs (c) and (d) to read
                                                                                                        application of the invention pursuant to               procedures.
                                              as follows:
                                                                                                        an application for an exclusive license                   (a) The exercise of march-in
                                              *     *     *    *     *                                  submitted in accordance with the                       procedures shall be in conformance
                                              § 1245.106       Waiver of foreign rights.                Licensing of Government-Owned                          with 35 U.S.C. 203 and the applicable
                                                                                                        Inventions (37 CFR part 404). * * *                    provisions of 37 CFR 401.6, entitled
                                              *     *     *     *     *                                   (c) * * * The contractor shall have
                                                (c) The Board will normally                                                                                    ‘‘Exercise of march-in rights for
                                                                                                        the right to appeal, in accordance with                inventions made by nonprofit
                                              recommend the waiver of foreign rights                    applicable regulations in 37 CFR part
                                              be granted under paragraph (a) or                                                                                organizations and small business firms.’’
                                                                                                        404, any decision concerning the
                                              paragraph (b) of this section in any                                                                             *      *    *     *     *
                                                                                                        revocation or modification of its license.
                                              designated country unless:                                                                                       Nanette Jennings,
                                                                                                        ■ 10. Section 1245.110 is amended by
                                                (1) The Board finds that exceptional
                                              circumstances exist, such that                            redesignating paragraphs (b) and (c) as                Federal Register Liaison Officer.
                                              restriction or denial of the requested                    paragraphs (c) and (d), and by adding                  [FR Doc. 2015–08145 Filed 4–9–15; 8:45 am]
                                              foreign rights will better promote one or                 new paragraph (b) to read as follows:                  BILLING CODE 7510–13–P

                                              more of the objectives set forth in                       § 1245.110        Content of petitions.
                                              § 1245.104(b)(3)(i) through (v); or                       *      *    *     *    *
                                                (2) The Board finds that the economic                      (b) Advance waiver petitions shall                  NATIONAL LABOR RELATIONS
                                              interests of the United States will not be                also identify the invention(s) and/or                  BOARD
                                              served thereby; or unless                                 class(es) of inventions that the
                                                (3) In the case of an individual                                                                               29 CFR Parts 101, 102, and 103
                                                                                                        Contractor believes will be made under
                                              identified invention under paragraph (b)                  the contract and for which waiver of                   RIN 3142–AA08
                                              of this section, NASA has determined,                     rights is being requested, in accordance
                                              prior to the request, to file a patent                    with § 1245.104(c)(2).                                 Representation—Case Procedures
                                              application in the designated country.
                                                                                                        *      *    *     *    *                               AGENCY:    National Labor Relations
                                                (d) If, subsequent to the granting of
                                              the petition for foreign rights, the                      ■ 11. Section 1245.112 is amended by                   Board.
                                              petitioner requests and designates                        revising paragraph (a) to read as follows:             ACTION:   Final rule; correction.
                                              additional countries in which it wishes                   § 1245.112 Notice of proposed Board                    SUMMARY:   On Monday, December 15,
                                              to secure patents, the Chairperson may                    action and reconsideration.                            2014, the National Labor Relations
                                              recommend such request, in whole or in                      (a) Notice. Except as provided by                    Board issued a final rule regarding
                                              part, without further action by the                       § 1245.104(d), the Board will notify the               representation case procedures, 79 FR
                                              Board.                                                    petitioner, through the contracting                    74307. Since the publication of the rule,
                                              ■ 8. Section 1245.107 is amended by                       officer, with respect to petitions for                 a number of minor errors have been
                                              revising the introductory text of                         advance waiver prior to contract                       noted throughout the Supplementary
                                              paragraph (b) to read as follows:                         execution, and directly to the petitioner              Information preceding the amendatory
                                                                                                        for all other petitions:                               language. The errata sheet below
                                              § 1245.107       Reservations.                              (1) When it proposes to recommend to                 corrects those errors.
                                              *      *    *      *    *                                 the Administrator that the petition be:
                                                 (b) March-in rights. For any invention                                                                        DATES: These corrections will be
                                                                                                          (i) Granted in an extent different from
                                              for which waiver of rights has been                       that requested; or                                     effective on April 14, 2015.
                                              granted under this subpart, NASA has                        (ii) Denied.                                         FOR FURTHER INFORMATION CONTACT: Gary
                                              the same right as set forth in 35 U.S.C.                    (2) Of the reasons for the                           Shinners, Executive Secretary, National
                                              203 and 210, with the procedures set                      recommended action adverse to or                       Labor Relations Board, 1099 14th Street
                                              forth in § 1245.117 and 37 CFR 401.6, to                  different from the waiver of rights                    NW., Washington, DC 20570, (202) 273–
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                                              require the contractor, an assignee, or                   requested by the petitioner.                           3737 (this is not a toll-free number), 1–
                                              exclusive licensee of the invention to                    *      *    *      *     *                             866–315–6572 (TTY/TDD).
                                              grant a nonexclusive, partially                           ■ 12. Section 1245.116 is amended by                   SUPPLEMENTARY INFORMATION:
                                              exclusive, or exclusive license in any                    revising paragraph (b) to read as follows:
                                              field of use to a responsible applicant or                                                                       Errata
                                              applicants, upon terms that are                           § 1245.116        Miscellaneous provisions.             On Monday, December 15, 2014, the
                                              reasonable under the circumstances,                       *       *     *        *      *                        National Labor Relations Board issued a


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Document Created: 2018-02-21 10:08:31
Document Modified: 2018-02-21 10:08:31
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionDirect final rule.
DatesThis rule is effective May 11, 2015. Comments due on or before April 27, 2015. If adverse comments are received, NASA will publish a timely withdrawal of the rule in the Federal Register.
ContactHelen M. Galus, Office of the General Counsel, NASA Headquarters, telephone (202) 358-3437.
FR Citation80 FR 19196 
RIN Number2700-AE02
CFR AssociatedInventions and Patents and Waivers

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