Sec. 4. Preference for United States industry
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/bill/118/s/1956/es/section-4A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 204 of title 35, United States Code, is amended to read as follows: In this section: The term country of concern has the meaning given the term covered nation in section 4872(d) of title 10. The term relevant congressional committees means— the Committee on Commerce, Science, and Transportation of the Senate; the Committee on the Judiciary of the Senate; the Committee on Science, Space, and Technology of the House of Representatives; and the Committee on the Judiciary of the House of Representatives.
Notwithstanding any other provision of this chapter, and subject to subsection (c), no small business firm or nonprofit organization which receives title to any subject invention and no assignee of any such small business firm or nonprofit organization shall grant to any person the exclusive right to use or sell any subject invention in the United States unless such person agrees that any products embodying the subject invention or produced through the use of the subject invention will be manufactured substantially in the United States.
In individual cases, subject to paragraphs
(2)and (3), the Federal agency under whose funding agreement the applicable subject invention was made may waive the requirement for an agreement described in subsection
(b)upon a showing by the applicable small business firm, nonprofit organization, or assignee that reasonable but unsuccessful efforts have been made to grant licenses on similar terms to potential licensees that would be likely to manufacture substantially in the United States or that under the circumstances domestic manufacture is not commercially feasible. Not later than 90 days after the date on which a Federal agency receives a request for a waiver described in paragraph
(1)and with respect to which paragraph
(3)does not apply, the Federal agency shall issue a decision regarding whether to grant the request. If granting a waiver under paragraph
(1)would result in products embodying the applicable subject invention or produced through the use of the applicable subject invention being manufactured substantially in a country of concern, the applicable Federal agency may not grant the waiver without the written authorization of the President (or a designee of the President). Not later than 1 year after the date of enactment of the Invent Here, Make Here Act of 2024 , and annually thereafter, each Federal agency with respect to which, during the preceding year, a nonprofit organization or small business firm that is a party to a funding agreement with the Federal agency elected to retain title under section 202 to the subject invention that was the subject of that funding agreement shall submit to the relevant congressional committees a report that includes the information described in subparagraph (B). Each report required under subparagraph
(A)shall include, for the period covered by the report— with respect to each request received by the applicable Federal agency for a waiver under this subsection, information regarding— the subject invention that is the subject of the request; the efforts made by the entity seeking the waiver to grant the exclusive right to use or sell the applicable subject invention to a person that would agree that any products embodying the subject invention or produced through the use of the subject invention would be manufactured substantially in the United States; and in which markets the products embodying the applicable subject invention or produced through the use of the applicable subject invention will be sold; and with respect to a small business firm or nonprofit organization that is based in the United States and has elected to retain title to a subject invention pursuant to section 202, whether that firm or organization intends to manufacture that subject invention in a foreign country for a foreign market. Each Federal agency that is required to submit a report under this paragraph shall preserve the confidentiality or trade sensitive nature of all information included in each such report. .