An invention not made in performance of a CRADA and which is covered by a patent or patent application with title vested in the U.S. Government can also be licensed to for-profit and not-for-profit entitites. The license may be exclusive, partially exclusive, or non-exclusive, and with or without geographic or other use restrictions. The Federal Government retains an irrevocable, worldwide, royalty free right to use the invention on behalf of the United States.
An application to license such a federal invention includes (a) specific information identifying the invention, (b) history of application's business relative to the invention, and (c) a detailed business plan for developing and marketing the invention. The Government may grant license only if the applicant has supplied the Government with a satisfactory plan, demonstrated his or her capability to fulfill the plan, and agreed that the product of the invention will be manufactured substantially in the United States. In addition, the Government gives first preference to small business firms submitting applications for licenses. (Small business is defined in Section II of P.L. 85-536 (15 U.S.C. 632) and in the implementing regulations of the Small Business Administration {SBA}).
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