9 
such as compliance with the NIH Guidelines, as a condition for 
granting an exclusive or a nonexclusive license.* 
The commentators generally supported the inclusion of 
requirements in the IPAs which would extend the NIH Guidelines 
beyond NIH grantees and contractors to private industry. 
Commentators from industry had reservations about mandatory 
compliance with the NIH Guidelines as a condition for obtaining 
licenses. Most found, however, that the use of the patent system 
for requiring compliance with the Guidelines would be acceptable. 
It was noted that the Guidelines would need to be modified for 
application to industry and that the development of a plan for 
their administration through the patent system would require 
considerable thought and care. A number of industrial commenta- 
tors also pointed out that use of the patent system to achieve 
compliance with the Guidelines could only be a temporary measure, 
for legislation or some form of administrative regulation would 
ultimately be needed to cover recombinant DNA research activity 
in both the public and private sectors. The Federal Government, 
* A nonexclusive license allows several licenses to be granted 
simultaneously for the development and marketing of one patentable 
invention. As noted in the relevant section of the patent agreement 
included in Appendix II, an institution must attempt to grant 
nonexclusive licenses. When the institution is unable to find 
a market for nonexclusive licenses, it may then grant an exclusive 
license. An exclusive license permits only one license to be granted 
for a limited time. A number of conditions are set forth in the 
patent agreement governing the granting of an exclusive license 
(see Appendix II). In an alternative approach to that mentioned 
above, the Department could review and approve exclusive licenses 
but not review nonexclusive licenses. 
til] 
