In early March, President Clinton signed legislation giving industry greater incentives to partner with federal laboratories on cooperative research projects. The National Technology Transfer and Improvement Act, P.L. 104-113, streamlines and clarifies federal guidance on cooperative research and development agreements between public and private entities. Industry is now statutorily guaranteed the option of an exclusive license to use any new joint invention. In cases where a private-sector firm is solely responsible for an invention, the collaborating firm is assured title to that invention. In return, the U.S. government retains minimal rights to use the invention for its legitimate needs. Federal inventors are also rewarded with the first $2,000 in royalties and 15 percent thereafter, up to $150,000 annually. The new law reduces the uncertainty and negotiating burden facing industry over intellectual property rights while ensuring government interests are protected.
