171 



exempts the Center from the provisions of the Freedom 

 of Information Act-offering further protection to appli- 

 cants. 





Applications may be submitted 

 at any time. At least two review 

 sessions are held each year, 

 with successful applicants be- 

 ing announced approximately three months after the start 

 of the reviews. 





The title to any intellectual 

 property developed under a 

 joint agreement with the AARC 

 Center will remain with the ap- 

 plicant. While federal legisla- 

 tion does require so-called 

 "march-in" rights for the gov- 

 ernment with regard to any in- 

 vention made with federal funds, the private sector firm 

 would have to be compensated through a UcensingA^oy- 

 alty arrangement, in the unlikely event that such rights 

 were exercised. 



Agreements include provi- 

 sions for repayment by suc- 

 cessful projects. The payback 

 provision is what makes the 

 AARC program such a novel 

 and innovative approach for 

 government. With smaller 

 firms, the AARC Center gen- 

 erally establishes an equity position with the company, 

 with the provision that at a later date the Center will sell 

 back the stock. Another approach used by the Center is to 

 arrange a multiple repayment scheme, with a deferred 

 pCTcentage rate included as recognition for the Center's 

 investment risk. The repayment is typically Unked to 

 produa sales, so thai if sales are initially slow, a firm is 

 not str£5)ped for cash in order to meet its obligation to the 

 AARC Center. 



The AARC Center receives 

 an annual appropriation from 

 Congress and operates under 

 a revolving fund, 'lae first 

 agreements were signed in 

 1993, investing money that 



