2 
Detailed conditions are set forth for institutions to grant 
licenses, and a set of conditions for the distribution of royalties 
is included. Institutions must grant the Government a license to 
make the invention or have it made for Governmental purposes. 
Under patent law, the use of patents for research purposes is not 
an infringement, and ordinarily the invention may be used in 
research without payment of royalties, 
o There are 72 IPA’s now being administered by the Department. The 
Department Patent Branch reports that 167 patent applications were 
filed under IPA's from 1969 through the fall of 1974. Approximately 
$24 million is committed by private industry to the development of 
inventions on the basis of licenses granted under these patents. 
Second, for those institutions or organizations that have not entered 
into a patent agreement with the Department, a somewhat different pro- 
cedure is followed: In this situation, determination of ownership 
generally is deferred until an invention has been made, at which time an 
institution may petition the Department for ownership of the invention 
or a license under the invention. 
o In the past, approximately 90 percent of all such petitions have 
been granted on the basis of a satisfactory plan proposed by the 
institution for developing or licensing. During the period from 
1969 to the fall of 1974, the Department has reviewed 178 petitions 
for ownership from institutions not having IPA’s and has granted 
[Appendix B — 246] 
