230 



The degree of Federal and non-Federal government participation 

 is also dependent on the progress being made in the technology's 

 evaluation. 



As I noted earlier, the simple DAM-ATOLL concept evolved 

 when Lockheed urged its scientists and engineers in the midseven- 

 ties to consider ways to adapt their knowledge to solutions to our 

 domestic energy supply dilemma. The DAM-ATOLL inventor, Mr. 

 L. S. Wirt, applied knowledge of acoustics to the ocean environ- 

 ment and devised a new energy system. Since that time, Lockheed 

 has utilized its discretionary funds to advance the technology 

 through the proof of concept stage, and we were granted a patent 

 in May 1979. 



Mr. Chairman, I am pleased that the Department of Energy has 

 recently provided funds via the Solar Energy Research Institute for 

 further developmental work on DAM-ATOLL which will lead to 

 testing of a 1/50 scale model in 1982. 



The work for the Solar Energy Research Institute began this 

 past July, but we feel that much valuable time was lost in negotiat- 

 ing an acceptable arrangement with the Government regarding 

 utilization of our background patent and data, and in obtaining 

 sufficient rights for future inventions. 



We submit that the basic policy approach of the DOE on patents 

 does not provide proper encouragement to industry to commercial- 

 ize their inventions and in fact contains disincentives to innovation 

 and risk-sharing by private industry; that is, the policy of taking 

 title to inventions that are developed under Government contracts. 



We believe that the public would be better served if the develop- 

 ing contractor were allowed to retain title to inventions while 

 always reserving for the Government the worldwide, nonexclusive 

 and royalty-free right to use the invention for any and all govern- 

 mental purposes. 



Completion of the Solar Energy Research Institute contract will 

 provide the necessary data to assess the appropriateness of a large 

 scale-demonstration. Assuming sufficient developmental progress 

 will have been realized to warrant such a large scale demonstra- 

 tion, the next issue to be addressed is identification of the funding 

 sources for this initiative. Because of the capital-intensive nature of 

 the technology, private sector financing may be difficult to obtain. 

 This expectation is based on two observations: 



Reluctance of electrical generation utilities to participate as in- 

 vestors in such programs; and the cost of venture capital. 



To execute a successful program. Federal assistance will be re- 

 quired. Satisfactory performance of the large-scale demonstration 

 facility, when coupled with utility acceptance of the technology, 

 will obviate the need for further Federal participation. 



Although we are in the early developmental phases of DAM- 

 ATOLL, we consider it to be a likely source of renewable alterna- 

 tive energy in those world areas where there is an adequate wave 

 energy resource. After successful demonstration, there could be a 

 large number of units, probably lOO's or 1,000's, which would bene- 

 fit from the economies of a production line. 



Our preliminary economic numbers indicate that DAM-ATOLL 

 can be a competitive source of solar energy in the early nineties. 

 An independent analysis by the United Kingdom Department of 



