BOARD OF TRUSTEES REPRESENTING 
• American Auooation of immunoiognti 
• American inttilute or Biological Sciencei 
• American Pny topatnoiogicai Society 
• American Society ot Biological Cnemuti 
• American Society tor Microbiology 
• American Society of Parantotognti 
• American Society of Zooiogilll 
• American Society of Tropical Medicine and Hygiene 
• Genetici Society of America 
• Inlectioui Oiteaici Society of America 
• Mycoiogical Society of America 
• National Reiearcn Council-National Academy of Scienct 
• Society of Protoaoolognti 
• Tinue Culture Aiiociation 
• 301-881 261 
AMERICAN TYPE CULTURE 
COLLECTION 
12301 PARKLAWN DRIVE 
ROCKVILLE. MARYLAND 2085 
September 14, 1976 
Dr. Donald S. Fredrickson 
Director 
National Institutes of Health 
Bethesda, Maryland 20014 
Dear Doctor Fredrickson: 
I am pleased to respond to your letter of September 7, 1976 with regard to 
patent applications in the area of recombinant DNA research activity. 
Such patent applications will apply to either processes or products. While 
the latter inevitably include a process description, the importance of the applica- 
tion primarily lies in the product claims. Process patents in microbiological 
systems, in my opinion, generally have relatively minor significance since they are 
often not too difficult to circumvent. A solid product patent on the other hand 
may have great value. Thus process patents may have more nuisance value than 
intrinsic value and I would urge the NIH not to encourage them. They may lead to 
wasteful research funds in efforts to circumvent an existing process patent. 
Despite the above evaluation, process patents probably significantly out- 
number product patents in the microbiological area. In reviewing the last 200 
patents which have crossed our desk, 68 were product patents and 132 were process 
patents. Thus the latter could present a significant problem for NIH without greatly 
adding to our know-how. 
Therefore, I would recommend the following with regard to patent applications 
in the area of recombinant DNA research activity funded by the NIH: 
1) Have the NIH retain all patent rights for patents based on 
inventions resulting from research funded by NIH and 
2) Issue non-exclusive licenses to interested parties to execute 
the findings in process patents, and 
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