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MEMO TO: SENATOR DOLE

FROM: PETE VELDE

SUBJECT: COMPROMISE ON DOLE AMENDMENT TO TECHNOLOGY TRANSFER BILL

SHELIA INFORMS ME THAT SENATOR GORTON APPROACHED YOU ON THE FLOOR YESTERDAY TO SEE IF YOU WOULD BE WILLING TO COMPROMISE ON THE DOLE AMENDMENT TO H.R.3773, THE FEDERAL TECHNOLOGY TRANSFER BILL, WHICH IN CURRENTLY IN CONFERENCE.

THE DOLE AMENDMENT PROVIDES THAT IN THE CASE OF PATENTS GENERATED FROM RESEARCH CONDUCTED IN GOVERNMENT LABORATORIES AND FUNDED WITH GOVERNMENT FUNDS IN PRIVATE RESEARCH FACILITIES, AT LEAST 15% OF ROYALTY INCOME SHALL GO TO THE INVENTOR. THIS IN ADDITION TO SALARIES OR OTHER COMPENSATION THAT THE EMPLOYEE MIGHT HAVE FROM HIS OR HER EMPLOYMENT. THIS PROVISION RESULTS FROM EARLIER LEGISLATION SPONSORED BY YOU AND SENATOR BAYH IN 1980 AND UPDATED IN 1984.

THE DOLE AMENDMENT IN ALSO SUPPORTED BY BOB MICHEL ON BEHALF OF THE USDA RESEARCH LABORATORY IN PEORIA. IN ADDITION IT IS SUPPORTED BY THE TECHNOLOGY TRANSFER GROUP IN COMMERCE DEPARTMENT AND THE DIRECTORS OF MOST GOVERNMENT RESEARCH LABS.

AT THE SAME TIME IT HAS BEEN OPPOSED BY CERTAIN STAFFERS AT OMB AND BY THE DEPARTMENT OF ENERGY. THE NAM ALSO HAS A PROBLEM WITH THE 15% FLOOR.

I HAVE MET WITH SENATOR GORTON'S COMMERCE COMMITTEE STAFF, BOB MICHEL'S OFFICE AND WITH COMMERCE OFFICIALS SEVERAL TIMES ON THE MATTER. INITIALLY, WE AGREED TO HOLD FIRM. HOWEVER, IT APPEARS THAT A COMPROMISE IS NECESSARY TO INSURE PASSAGE THIS YEAR. SENATOR GORTON'S STAFF HAS DEVELOPED A PROPOSED COMPROMISE WHICH IS ACCEPTABLE TO COMMERCE AND TO BOB MICHEL'S OFFICE. IT STILL ADHERES TO THE BASIC 15% FIGURE, BUT ALLOWS FOR FLEXIBILITY IF THE AGENCY ISSUES REGULATIONS JUSTIFYING ALTERNATIVE PERCENTAGES.

THE LANGUAGE OF THE AMENDMENT IS ATTACHED. I RECOMMEND YOU ACCEPT THE LANGUAGE IN THE PROPOSED SUBSTITUTE.

CC: SHELIA BURKE
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