oversight

Technology Transfer: Number and Characteristics of Inventions Licensed by Six Federal Agencies

Published by the Government Accountability Office on 1999-06-18.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                  United States General Accounting Office

GAO               Report to the Honorable Duncan L.
                  Hunter, House of Representatives



June 1999
                  TECHNOLOGY
                  TRANSFER
                  Number and
                  Characteristics of
                  Inventions Licensed by
                  Six Federal Agencies




GAO/RCED-99-173
      United States
GAO   General Accounting Office
      Washington, D.C. 20548

      Resources, Community, and
      Economic Development Division

      B-281432

      June 18, 1999

      The Honorable Duncan L. Hunter
      House of Representatives

      Dear Mr. Hunter:

      The federal government, a major sponsor of research and development,
      provided about $70 billion in funding for this purpose in fiscal year 1998.
      Federal funds are used to support both “intramural” programs that
      involve government employees working in government facilities and
      “extramural” programs that are carried out by nonfederal organizations
      through contracts and grants.1 In some cases, federally sponsored
      research leads to the creation of new products and processes that can be
      patented and commercialized. Generally, when a federal employee creates
      an invention within the scope of his or her employment, the applicable
      agency retains title, may license the invention to third parties, and may
      receive royalties under the license. When a contractor or grantee creates
      the invention, however, the contractor or grantee generally is allowed to
      take title to, license, and receive royalties on the invention.

      You requested that we provide statistical information on the licensing of
      government-owned inventions created under federally funded research
      projects. This report provides information on (1) government-owned
      inventions licensed by six federal agencies during fiscal years 1996
      through 1998, including the royalties received during that period, and the
      total number of active licenses these agencies had as of October 1, 1998;
      (2) whether the licenses were exclusive or nonexclusive; (3) whether the
      licensees were small businesses, individuals, large businesses, or nonprofit
      organizations; and (4) whether the licensees were foreign or domestic.

      Generally, an “exclusive license” conveys the right to make, use, or sell
      the invention to only one licensee, while a “nonexclusive license” can
      convey all or a portion of these rights to multiple licensees. A “small
      business” is a for-profit entity with 500 or fewer employees; a “large
      business” is a for-profit entity with more than 500 employees; and a
      “nonprofit” is any other organization. A “domestic” licensee is one
      incorporated or headquartered in the United States, while all other
      licensees are considered “foreign.” The six agencies are the National
      Institutes of Health, within the Department of Health and Human Services;

      1
       Some agencies, such as the Department of Energy, use contractors to operate federally owned
      facilities. This report concerns only government-owned inventions and thus does not include any
      statistics for contractor-owned inventions created in federally owned laboratories.



      Page 1                                            GAO/RCED-99-173 Federal Licensing Statistics
                   B-281432




                   the departments of the Army, the Navy, and the Air Force; the Department
                   of Energy; and the National Aeronautics and Space Administration.


                   The six agencies reported that they granted a total of 866 licenses and
Results in Brief   received $107.5 million in royalties during fiscal years 1996 through 1998.
                   As shown in figure 1, most of the licenses were nonexclusive, most went
                   to small businesses or individuals, and most went to domestic entities.




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                                          B-281432




Figure 1: Characteristics of Licenses and Licensees

                                                                                                               Unknown
                   2%                                                               1%
                                          Other
                                                                                     6%
                                                                                                                Nonprofit

                         25%              Exclusive

                                                                                      33%                      Large business


                                                                     60%                                       Small/Individual business
           73%                            Nonexclusive




                                                      11%                       Foreign




                                               89%                              Domestic




                                          Source: GAO’s presentation of data from the National Institutes of Health (NIH); the departments
                                          of the Army, the Navy, and the Air Force (USAF); the Department of Energy (DOE); and the
                                          National Aeronautics and Space Administration (NASA).




                                          As of October 1, 1998, the six agencies had a total of 1,391 active licenses.
                                          The license types, licensee types, and licensee locations occurred in




                                          Page 3                                           GAO/RCED-99-173 Federal Licensing Statistics
                     B-281432




                     proportions similar to those licenses granted during fiscal years 1996
                     through 1998.


                     For multiple and diverse reasons, the U.S. government encourages the
Background           licensing and commercialization of inventions created under federally
                     sponsored research. These reasons include assisting small businesses,
                     promoting collaboration between commercial enterprises and nonprofit
                     organizations, and encouraging the use of new technology by U.S. industry
                     and labor. Under 35 U.S.C. 207, federal agencies are authorized to apply
                     for patents and to grant licenses for federally owned patent applications
                     and patents.

                     There is no comprehensive national database on the licensing of federally
                     funded inventions. Recording licenses to third parties is permitted at the
                     Patent and Trademark Office, within the Department of Commerce, but is
                     not required for either the public or government patent holders. When
                     licenses are submitted for recording, they are included in an
                     “assignment” database that primarily provides a record of patent
                     ownership. However, according to Patent and Trademark Office officials,
                     few licenses are recorded at their office for inclusion in this database. The
                     Government Register, established by executive order in 1944, is a subset of
                     the assignment database and is the official record of all rights and interests
                     of the U.S. government in and under patents. The Government Register is
                     not used to record licenses to third parties.

                     Data concerning agency licensing is also published by the Department of
                     Commerce as part of its biennial reporting of agencies’ implementation of
                     the Stevenson-Wydler Technology Innovation Act and related legislation.2


                     The number of new licenses granted annually by the six federal agencies
Annual Licenses      remained relatively constant for the 3 fiscal years, with 279 in fiscal year
Granted Have         1996, 292 in fiscal year 1997, and 295 in fiscal year 1998. As shown in figure
Remained Constant,   2, royalty revenues increased from $28.3 million in fiscal year 1996 to
                     $41.9 million in fiscal year 1998, an increase of 48.1 percent (see app. I).
but Royalties Have
Increased
                     2
                      Under the Stevenson-Wydler Technology Innovation Act of 1980, as amended, it is the policy of the
                     federal government, where appropriate, to transfer federally owned or originated technology to state
                     and local governments and to the private sector (15 U.S.C. 3710(a)). As part of its responsibility under
                     this act, the Secretary of Commerce is required to submit biennial reports to the President and the
                     Congress on agencies’ use of the act’s authorities (15 U.S.C. 3710(g)(2)).



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Figure 2: Royalties Received by Six
Federal Agencies, Fiscal Years 1996    50      Dollars in Millions
Through 1998


                                       40




                                       30




                                       20




                                       10




                                        0

                                               1996          1997    1998
                                               Fiscal Year



                                      Source: GAO’s presentation of data from NIH, the Army, the Navy, the USAF, DOE, and NASA.




                                      As shown in figure 3, NIH was by far the largest licensor among the six
                                      agencies, accounting for 607, or 70.1 percent, of the total licenses granted
                                      over the 3 fiscal years. NIH also had the majority of active licenses, with
                                      990, or 71.1 percent, of the 1,391 licenses active as of October 1, 1998.




                                      Page 5                                         GAO/RCED-99-173 Federal Licensing Statistics
                                      B-281432




Figure 3: Licenses Granted by Six
Federal Agencies, Fiscal Years 1996   1200 Number of licenses
Through 1998 and Active as of
October 1, 1998

                                      1000




                                       800




                                       600


                                       120

                                       100

                                        80

                                        60

                                        40

                                        20

                                         0

                                               NIH              Army             Navy       USAF         DOE          NASA
                                               Agency

                                                        Fiscal years 1996 through 1998

                                                        Active as of October 1, 1998



                                      Source: GAO’s presentation of data from the agencies cited.




                                      As shown in table 1, NIH also had the largest share of total royalty
                                      payments received during fiscal years 1996 through 1998, accounting for
                                      $102.2 million, or 95.1 percent, of the $107.5 million received by the six
                                      agencies.




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                                      B-281432




Table 1: Royalties Received by Six
Federal Agencies, Fiscal Years 1996                                                                           Percentage of total
Through 1998                          Agency                                     Royalties received                    royalties
                                      NIH                                               $102,200,000                         95.1
                                      The Army                                              1,030,537                         1.0
                                      The Navy                                              1,765,006                         1.6
                                      The USAF                                                560,000                         0.5
                                      DOE                                                     435,175                         0.4
                                      NASA                                                  1,470,280                         1.4
                                      Total                                             $107,460,998                          100
                                      Source: GAO’s presentation of data from the agencies cited.




                                      Most of the licenses reported by the six agencies were nonexclusive.
Most Licenses Were                    Nonexclusive licenses accounted for 634, or 73.2 percent, of the licenses
Nonexclusive                          granted during fiscal years 1996 through 1998 and for 963, or 69.2 percent,
                                      of the licenses active as of October 1, 1998. As shown in figures 4 and 5,
                                      the individual agencies varied widely by the type of license granted. NIH
                                      reported that 514, or 84.7 percent, of its licenses granted during the 3 fiscal
                                      years and 769, or 77.7 percent, of its active licenses were nonexclusive. NIH
                                      granted more licenses than the other five agencies combined, and because
                                      of the amounts for NIH, the percentage of nonexclusive licenses for these
                                      five agencies was much smaller than for all six agencies combined. While
                                      DOE also had a high proportion of nonexclusive licenses, the other four
                                      agencies had far smaller proportions and, in some cases, had more
                                      exclusive than nonexclusive licenses (see apps. III and IV).




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                                        B-281432




Figure 4: Types of Licenses Granted
by Six Federal Agencies, Fiscal Years   600   Number of licenses
1996 Through 1998


                                        500




                                        400


                                        100


                                         80



                                         60



                                         40



                                         20


                                          0

                                              NIH                  Army      Navy           USAF         DOE           NASA
                                              Agency

                                                       Exclusive

                                                       Nonexclusive

                                                       Other



                                        Source: GAO’s presentation of data from the agencies cited.




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Figure 5: Types of Licenses Granted
by Six Federal Agencies, Active as of   900   Number of licenses
October 1, 1998

                                        800


                                        700

                                        200




                                        150

                                         80
                                         70
                                         60
                                         50
                                         40
                                         30
                                         20
                                         10
                                          0

                                              NIH              Army         Navy           USAF         DOE          NASA
                                              Agency

                                                       Exclusive

                                                       Nonexclusive

                                                       Other



                                        Source: GAO’s presentation of data from the agencies cited.



                                        Small businesses and individuals represented the largest segment of
Most Licensees Were                     licensees for government-owned inventions. Small businesses and
Small Businesses and                    individuals accounted for 518, or 59.8 percent, of all licenses granted
Individuals                             during fiscal years 1996 through 1998 and for 744, or 53.5 percent, of the
                                        licenses active as of October 1, 1998. Large businesses accounted for more
                                        than a third of licenses granted over the 3-year period as well as for active
                                        licenses. Nonprofit organizations accounted for only 54, or 6.2 percent, of
                                        the licenses granted during the 3 fiscal years and 40, or 2.9 percent, of the
                                        active licenses.




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                                         B-281432




                                         As shown in figures 6 and 7, the individual agencies were consistent in
                                         granting a majority of their licenses to small businesses and individuals.
                                         The only exception was the Army, which reported that small businesses
                                         and individuals accounted for 9, or 19.1 percent, of the licenses it granted
                                         in fiscal years 1996 through 1998 and for 20, or 21.5 percent, of active
                                         licenses (see apps. V and VI).



Figure 6: Licenses Granted by Six Federal Agencies, by Licensee Type and Agency, Fiscal Years 1996 Through 1998

400 Number of licenses



350



300



250



200



100

 80

 60

 40

 20

  0

      NIH                Army                Navy                      USAF                  DOE                 NASA
      Agency


                                                    Large

                                                    Small/Individual

                                                    Nonprofit

                                                    Unknown


                                         Source: GAO’s presentation of data from the agencies cited.




                                         Page 10                                         GAO/RCED-99-173 Federal Licensing Statistics
                                          B-281432




Figure 7: Licenses by Licensee Type and Agency, Active as of October 1, 1998

600   Number of licenses




500




400

100



 80



 60



 40



 20



  0

      NIH                  Army              Navy                       USAF                DOE                 NASA
      Agency


                                                     Large

                                                     Small/Individual

                                                     Nonprofit

                                                     Unknown


                                          Source: GAO’s presentation of data from the agencies cited.



                                          The majority of licenses went to domestic entities. Of the licenses granted
Most Licensees Were                       in fiscal years 1996 through 1998, 767, or 88.6 percent, went to domestic
Located in the United                     entities, as did 1,177 or 84.6 percent of the licenses active as of October 1,
States                                    1998. Figures 8 and 9 show that the individual agencies generally were
                                          consistent in granting a majority of their licenses to domestic entities, with




                                          Page 11                                         GAO/RCED-99-173 Federal Licensing Statistics
                                  B-281432




                                  all six agencies reporting at least 80 percent of their licenses as domestic.
                                  Most of the licenses that went to foreign entities had been granted by NIH
                                  (see apps. VII and VIII).


Figure 8: Licenses Granted by
Licensee’s Location and Agency,   600    Number of licenses
Fiscal Years 1996 Through 1998



                                  500




                                  120



                                  100



                                   80



                                   60



                                   40



                                   20



                                    0

                                            NIH                 Army    Navy            USAF         DOE           NASA
                                            Agency


                                                     Domestic

                                                     Foreign



                                  Source: GAO’s presentation of data from the agencies cited.




                                  Page 12                                         GAO/RCED-99-173 Federal Licensing Statistics
                                    B-281432




Figure 9: Licenses by Licensee’s
Location and Agency, Active as of   900 Number of licenses
October 1, 1998


                                    800




                                    700


                                    200




                                    150




                                    100




                                     50




                                      0

                                          NIH                 Army       Navy          USAF        DOE          NASA

                                          Agency


                                                   Domestic

                                                   Foreign



                                    Source: GAO’s presentation of data from the agencies cited.



                                    We provided copies of a draft of this report to the National Aeronautics
Agency Comments                     and Space Administration, the Department of Commerce, the Department
and Our Evaluation                  of Energy, the Department of Defense, and the National Institutes of
                                    Health for review and comment. The National Aeronautics and Space
                                    Administration responded that it had no comments. Each of the other




                                    Page 13                                         GAO/RCED-99-173 Federal Licensing Statistics
              B-281432




              agencies recommended various changes and clarifications to the report,
              and we made changes as appropriate.

              The Department of Commerce suggested that we acknowledge, in our
              introduction, that there are government-owned facilities operated by
              contractors where the inventions are not government-owned, and,
              consequently, statistics on these inventions are not included in our report.
              We revised the report in response. Commerce also suggested that we
              explain that some of the agencies are parts of departments where there are
              also other agencies conducting research and that our report does not
              provide statistics on these other agencies. While we agree that these other
              agencies conduct research, we did not make changes in this regard
              because the report already explains that the statistics included were
              limited to the six specific agencies named and that the six agencies are
              among the largest in terms of research funding and patents. In addition,
              Commerce suggested that we add information to the background section
              of the report to provide a better characterization of certain databases
              maintained by the Patent and Trademark Office and to note that
              Commerce provides a biennial report on agency licensing. We added these
              clarifications.

              The Department of Defense, commenting for the departments of the Army,
              the Navy, and the Air Force, suggested a number of changes, such as
              adding footnotes to some of the data in the appendixes and making some
              revisions to license categories. We made each of these as appropriate to
              the statistics presented in appendixes in XI through XVI.

              The Department of Energy requested that we include a statement in the
              report to show that the Department receives much of its royalty income
              from inventions created in its laboratories by contractors, even though the
              inventions themselves are not government-owned. We added this
              information as a note to the statistics presented in appendixes XVII and
              XVIII.

              The National Institutes of Health suggested that we restate our definition
              of “nonexclusive” licenses to note that these licenses can convey the
              same rights as “exclusive” licenses but to multiple licensees. We changed
              the definition as suggested.


              Because there is no comprehensive database on the licensing of
Scope and     government inventions, we obtained our statistics directly from selected
Methodology

              Page 14                              GAO/RCED-99-173 Federal Licensing Statistics
B-281432




funding agencies. We asked for information from six agencies—the
National Institutes of Health; the departments of the Army, the Navy, and
the Air Force; the Department of Energy; and the National Aeronautics
and Space Administration. We chose these six agencies because they were
among the largest agencies in terms of funding for research and
development during fiscal year 1998, accounting for about $54 billion, or
77.4 percent, of the $69.8 billion in funding for all federal agencies. Also,
they were the six largest agencies in terms of patents granted by the
Patent and Trademark Office to federal agencies during fiscal years 1988
through 1997 and, according to federal officials knowledgeable with
technology transfer, among the largest in invention-licensing activities.

From each agency selected, we requested information for licenses granted
during fiscal years 1996 through 1998 as well as for licenses in effect as of
October 1, 1998. We asked the agencies to provide statistics regarding
(1) license type, or whether the licenses were exclusive or nonexclusive;
(2) licensee type, or whether the inventions were licensed to
individuals/small businesses, large businesses, or nonprofit organizations;
and (3) licensee location, or whether the licensees were foreign or
domestic.

We asked the agencies to provide information for both government-owned
inventions and federally supported inventions owned by federal
contractors and grantees. However, the agencies generally did not collect
or maintain information on licenses granted to third parties by contractors
and grantees. Thus, the licensing statistics in this report are limited to
government-owned inventions.

We did not validate or verify the data provided by the agencies. However,
we contacted agency officials to discuss their programs and to obtain
answers to any questions we had regarding the statistics they had
provided. We conducted our work from September 1998 through May 1999
in accordance with generally accepted government auditing standards.


We will send copies of this report to the appropriate House and Senate
committees; interested Members of Congress; the agencies discussed in
this report; the Honorable Jacob J. Lew, Director, Office of Management
and Budget; and other interested parties. We will make copies available to




Page 15                               GAO/RCED-99-173 Federal Licensing Statistics
B-281432




others upon request. If you or your staff have any questions or need
additional information, please call me at (202) 512-3841. Major
contributors to this report are listed in appendix XXI.

Sincerely yours,




Susan Kladiva
Associate Director, Energy,
  Resources, and Science Issues




Page 16                              GAO/RCED-99-173 Federal Licensing Statistics
Page 17   GAO/RCED-99-173 Federal Licensing Statistics
Contents



Letter                                                                       1


Appendix I                                                                  26

Characteristics of the
Licenses Granted and
the Royalties
Received by Six
Federal Agencies,
Fiscal Years 1996
Through 1998
Appendix II                                                                 27

Characteristics of the
Licenses Granted by
Six Federal Agencies,
Active as of
October 1, 1998
Appendix III                                                                28

Licenses Granted by
Six Federal Agencies
by License Type,
Fiscal Years 1996
Through 1998
Appendix IV                                                                 29

Licenses Granted by
Six Federal Agencies
by License Type,
Active as of
October 1, 1998


                         Page 18   GAO/RCED-99-173 Federal Licensing Statistics
                         Contents




Appendix V                                                                   30

Licenses Granted by
Six Federal Agencies
by Licensee Type,
Fiscal Years 1996
Through 1998
Appendix VI                                                                  31

Licenses Granted by
Six Federal Agencies
by Licensee Type,
Active as of
October 1, 1998
Appendix VII                                                                 32

Licenses Granted by
Six Federal Agencies
by Licensee’s
Location, Fiscal Years
1996 Through 1998
Appendix VIII                                                                33

Licenses Granted by
Six Federal Agencies
by Licensee’s
Location, Active as of
October 1, 1998




                         Page 19    GAO/RCED-99-173 Federal Licensing Statistics
                          Contents




Appendix IX                                                                   34

Characteristics of the
Licenses Granted and
the Royalties
Received by the
National Institutes of
Health, Fiscal Years
1996 Through 1998
Appendix X                                                                    35

Characteristics of the
Licenses Granted by
the National Institutes
of Health, Active as of
October 1, 1998
Appendix XI                                                                   36

Characteristics of the
Licenses Granted and
the Royalties
Received by the
Department of the
Army, Fiscal Years
1996 Through 1998




                          Page 20    GAO/RCED-99-173 Federal Licensing Statistics
                         Contents




Appendix XII                                                                 37

Characteristics of the
Licenses Granted by
the Department of the
Army, Active as of
October 1, 1998
Appendix XIII                                                                38

Characteristics of the
Licenses Granted and
the Royalties
Received by the
Department of the
Navy, Fiscal Years
1996 Through 1998
Appendix XIV                                                                 39

Characteristics of the
Licenses Granted by
the Department of the
Navy, Active as of
October 1, 1998




                         Page 21    GAO/RCED-99-173 Federal Licensing Statistics
                          Contents




Appendix XV                                                                   40

Characteristics of the
Licenses Granted and
the Royalties
Received by the
Department of the Air
Force, Fiscal Years
1996 Through 1998
Appendix XVI                                                                  41

Characteristics of the
Licenses Granted by
the Department of the
Air Force, Active as of
October 1, 1998
Appendix XVII                                                                 42

Characteristics of the
Licenses Granted and
the Royalties
Received by the
Department of
Energy, Fiscal Years
1996 Through 1998




                          Page 22    GAO/RCED-99-173 Federal Licensing Statistics
                         Contents




Appendix XVIII                                                               43

Characteristics of the
Licenses Granted by
the Department of
Energy, Active as of
October 1, 1998
Appendix XIX                                                                 44

Characteristics of the
Licenses Granted and
the Royalties
Received by the
National Aeronautics
and Space
Administration, Fiscal
Years 1996 Through
1998
Appendix XX                                                                  45

Characteristics of the
Licenses Granted by
the National
Aeronautics and
Space Administration,
Active of as
October 1, 1998




                         Page 23    GAO/RCED-99-173 Federal Licensing Statistics
                     Contents




Appendix XXI                                                                                      46

Major Contacts and
Staff
Acknowledgements
Table                Table 1: Royalties Received by Six Federal Agencies, Fiscal                   7
                      Years 1996 Through 1998

Figures              Figure 1: Characteristics of Licenses and Licensees                           3
                     Figure 2: Royalties Received by Six Federal Agencies, Fiscal                  5
                       Years 1996 Through 1998
                     Figure 3: Licenses Granted by Six Federal Agencies, Fiscal Years              6
                       1996 Through 1998 and Active as of October 1, 1998
                     Figure 4: Types of Licenses Granted by Six Federal Agencies,                  8
                       Fiscal Years 1996 Through 1998
                     Figure 5: Types of Licenses Granted by Six Federal Agencies,                  9
                       Active as of October 1, 1998
                     Figure 6: Licenses Granted by Six Federal Agencies, by Licensee              10
                       Type and Agency, Fiscal Years 1996 Through 1998
                     Figure 7: Licenses by Licensee Type and Agency, Active as of                 11
                       October 1, 1998
                     Figure 8: Licenses Granted by Licensee’s Location and Agency,                12
                       Fiscal Years 1996 Through 1998
                     Figure 9: Licenses by Licensee’s Location and Agency, Active as              13
                       of October 1, 1998




                     Abbreviations

                     DOE        Department of Energy
                     GAO        General Accounting Office
                     NASA       National Aeronautics and Space Administration
                     NIH        National Institutes of Health
                     USAF       United States Air Force


                     Page 24                             GAO/RCED-99-173 Federal Licensing Statistics
Page 25   GAO/RCED-99-173 Federal Licensing Statistics
Appendix I

Characteristics of the Licenses Granted and
the Royalties Received by Six Federal
Agencies, Fiscal Years 1996 Through 1998

                                                                      Fiscal year
               Description                        1996                1997                 1998                  Total
               Total licenses
               granted                             279                  292                 295                   866
               License type
               Exclusive                             81                  70                  65                   216
               Nonexclusive                        188                  218                 228                   634
               Othera                                10                   4                    2                   16
               Licensee type
               Large business                      100                   92                  96                   288
               Small business/
               individual                          153                  185                 180                   518
               Nonprofit                             20                  15                  19                    54
               Unknown                                6                   0                    0                    6
               Licensees’
               location
               Domestic                            243                  262                 262                   767
               Foreign                               36                  30                  33                    99
               Total royalties
               received                  $28,323,050          $37,270,104         $41,867,844        $107,460,998
               Note: The federal agencies are the National Institutes of Health (NIH) within the Department of
               Health and Human Services, the Department of the Army (Army), the Department of the Navy
               (Navy), the Department of the Air Force (Air Force), the Department of Energy (DOE); and the
               National Aeronautics and Space Administration (NASA).
               a
                Includes agency responses “co-exclusive,” ”partially exclusive,” “assignment,” or
               “combination exclusive and nonexclusive.”

               Source: GAO’s presentation of data from NIH, the Army, the Navy, the Air Force, DOE, and NASA.




               Page 26                                           GAO/RCED-99-173 Federal Licensing Statistics
Appendix II

Characteristics of the Licenses Granted by
Six Federal Agencies, Active as of October 1,
1998

               Description                                                                                 Number
               Total active licenses                                                                              1,391
                              a
               License type
               Exclusive                                                                                           368
               Nonexclusive                                                                                        963
               Otherb                                                                                               60
               Licensee type
               Large business                                                                                      555
               Small business/individual                                                                           744
               Nonprofit                                                                                            40
               Unknown                                                                                              52
               Licensees’ location
               Domestic                                                                                           1,177
               Foreign                                                                                             214
               a
                The Navy’s license total of 83 includes only licenses from which the Navy received royalties in
               fiscal years 1996, 1997, and/or 1998, except for assignments.
               b
                Includes agency responses “co-exclusive,” “partially exclusive,” “assignment,” or
               “combination exclusive and nonexclusive.”

               Source: GAO’s presentation of data from NIH, the Army, the Navy, the Air Force, DOE, and NASA.




               Page 27                                           GAO/RCED-99-173 Federal Licensing Statistics
Appendix III

Licenses Granted by Six Federal Agencies by
License Type, Fiscal Years 1996 Through
1998

                                                Funding agency
Type           NIH   Army             Navy           Air Force             DOE                NASA          Total
Exclusive       87       28              17                    9                3                 72          216
Nonexclusive   514       19              24                  10               28                  39          634
Othera           6        0                4                   6                0                   0          16
Total          607       47              45                  25               31                 111          866
                     a
                      Includes agency responses “co-exclusive,“ “partially exclusive,” “assignment,” or
                     “combination exclusive and nonexclusive.”

                     Source: GAO’s presentation of data from the agencies cited.




                     Page 28                                          GAO/RCED-99-173 Federal Licensing Statistics
Appendix IV

Licenses Granted by Six Federal Agencies by
License Type, Active as of October 1, 1998


                                                 Funding agency
                                            a
Type           NIH   Army             Navy            Air Force              DOE                NASA                     Total
Exclusive      200       44               29                  13                11                  71                    368
Nonexclusive   769       32               46                  17                62                  37                    963
Otherb          21       17                8                  14                 0                    0                    60
Total          990       93               83                  44                73                 108               1,391
                     a
                      The Navy’s license total includes only licenses from which the Navy received royalties in fiscal
                     years 1996, 1997, and/or 1998, except for assignments.
                     b
                      Includes agency responses “co-exclusive,” “partially exclusive,” “assignment,” or
                     “combination exclusive and nonexclusive.”

                     Source: GAO’s presentation of data from the agencies cited.




                     Page 29                                            GAO/RCED-99-173 Federal Licensing Statistics
Appendix V

Licenses Granted by Six Federal Agencies by
Licensee Type, Fiscal Years 1996 Through
1998

                                                        Funding agency
                                 a
Type                  NIH   Army             Navy            Air Force              DOE                NASA                 Total
Large business        223       30               12                    2                8                  13                    288
Small
business/individual   346        9               30                  16               23                   94                    518
Nonprofit              38        8                3                    1                0                    4                   54
Unknown                 0        0                0                    6                0                    0                    6
Total                 607       47               45                  25               31                  111                    866
                            a
                             The Army reported a licensee as a large business unless expressly identified as a small
                            business/individual or nonprofit organization either in the license agreement or by the laboratory
                            that entered into the agreement.

                            Source: GAO’s presentation of data from the agencies cited.




                            Page 30                                            GAO/RCED-99-173 Federal Licensing Statistics
Appendix VI

Licenses Granted by Six Federal Agencies by
Licensee Type, Active as of October 1, 1998


                                                        Funding agency
                                 a
Type                  NIH   Army             Navy            Air Force              DOE                NASA                 Total
Large business        438       35               32                    4              29                   17                    555
Small
business/individual   521       20               45                  28               43                   87                    744
Nonprofit              10        8                6                  12                 1                    3                   40
Unknown                21       30                0                    0                0                    1                   52
Total                 990       93               83                  44               73                  108               1,391
                            a
                             The Army reported a licensee as a large business unless expressly identified as a small
                            business/individual or nonprofit organization either in the license agreement or by the laboratory
                            that entered into the agreement.

                            Source: GAO’s presentation of data from the agencies cited,




                            Page 31                                            GAO/RCED-99-173 Federal Licensing Statistics
Appendix VII

Licenses Granted by Six Federal Agencies by
Licensee’s Location, Fiscal Years 1996
Through 1998

                                                Funding agency
Location       NIH   Army             Navy          Air Force             DOE            NASA              Total
Domestic       520      40               44                 24               28            111               767
Foreign         87        7               1                   1               3               0               99
Total          607      47               45                 25               31            111               866
                     Source: GAO’s presentation of data from the agencies cited.




                     Page 32                                         GAO/RCED-99-173 Federal Licensing Statistics
Appendix VIII

Licenses Granted by Six Federal Agencies by
Licensee’s Location, Active as of October 1,
1998

                                                 Funding agency
Location        NIH   Army             Navy          Air Force             DOE            NASA              Total
Domestic        792      86               80                 43               69            107             1,177
Foreign         198        7               3                   1               4               1              214
Total           990      93               83                 44               73            108             1,391
                      Source: GAO’s presentation of data from the agencies cited.




                      Page 33                                         GAO/RCED-99-173 Federal Licensing Statistics
Appendix IX

Characteristics of the Licenses Granted and
the Royalties Received by the National
Institutes of Health, Fiscal Years 1996
Through 1998
                                                                     Fiscal year
               Description                       1996                1997                1998              Total
               Total licenses
               granted                             184                 208                 215              607
               License type
               Exclusive                            36                  28                  23               87
               Nonexclusive                        144                 179                 191              514
               Othera                                4                    1                   1               6
               Licensee type
               Large business                       79                  69                  75              223
               Small business/
               individual                           92                 127                 127              346
               Nonprofit                            13                  12                  13               38
               Licensees’
               location
               Domestic                            156                 180                 184              520
               Foreign                              28                  28                  31               87
               Total royalties
               received                  $26,995,000          $35,692,000        $39,513,000        $102,200,000
               a
                Includes agency responses “co-exclusive,” ”partially exclusive,“ “assignment,” or
               “combination exclusive and nonexclusive.”

               Source: GAO’s presentation of data from NIH.




               Page 34                                          GAO/RCED-99-173 Federal Licensing Statistics
Appendix X

Characteristics of the Licenses Granted by
the National Institutes of Health, Active as
of October 1, 1998

                Description                                                                          Number
                Total active licenses                                                                    990
                License type
                Exclusive                                                                                200
                Nonexclusive                                                                             769
                Othera                                                                                    21
                Licensee type
                Large business                                                                           438
                Small business/individual                                                                521
                Nonprofit                                                                                 10
                Other                                                                                     21
                Licensees’ location
                Domestic                                                                                 792
                Foreign                                                                                  198
                a
                 Includes agency responses “co-exclusive,” ”partially exclusive,“ “assignment,” or
                “combination exclusive and nonexclusive.”

                Source: GAO’s presentation of data from NIH.




                Page 35                                          GAO/RCED-99-173 Federal Licensing Statistics
Appendix XI

Characteristics of the Licenses Granted and
the Royalties Received by the Department of
the Army, Fiscal Years 1996 Through 1998

                                                                      Fiscal year
               Description                        1996                 1997                1998                Total
               Total licenses
               granted                               18                  17                   12                    47
               License type
               Exclusive                              8                  11                     9                   28
               Nonexclusive                          10                    6                    3                   19
               Licensee typea
               Large business                        11                  11                     8                   30
               Small business/
               individual                             2                    4                    3                    9
               Nonprofit                              5                    2                    1                    8
               Licensees’
               location
               Domestic                              15                  15                   10                    40
               Foreign                                3                    2                    2                    7
               Total royalties
               received                      $345,796             $255,496            $429,245           $1,030,537
               a
                The Army reported a licensee as a large business unless expressly identified as a small
               business/individual or nonprofit organization either in the license agreement or by the laboratory
               that entered into the agreement.

               Source: GAO’s presentation of data from the Army.




               Page 36                                            GAO/RCED-99-173 Federal Licensing Statistics
Appendix XII

Characteristics of the Licenses Granted by
the Department of the Army, Active as of
October 1, 1998

               Description                                                                                  Number
               Total active licenses                                                                                  93
               License type
               Exclusive                                                                                              44
               Nonexclusive                                                                                           32
               Othera                                                                                                 17
                                b
               Licensee type
               Large business                                                                                         35
               Small business/individual                                                                              20
               Nonprofit                                                                                               8
               Unknown                                                                                                30
               Licensees’ location
               Domestic                                                                                               86
               Foreign                                                                                                 7
               a
                Includes agency responses “co-exclusive,” ”partially exclusive,“ “assignment,” or
               “combination exclusive and nonexclusive.”
               b
                The Army reported licensee type if so identified in the license agreement or by the laboratory that
               entered into the agreement; otherwise, the type was reported as “unknown.”

               Source: GAO’s presentation of data from the Army.




               Page 37                                            GAO/RCED-99-173 Federal Licensing Statistics
Appendix XIII

Characteristics of the Licenses Granted and
the Royalties Received by the Department of
the Navy, Fiscal Years 1996 Through 1998

                Description                        1996               1997                1998            Total
                Total licenses
                granted                               16                 14                15               45
                License type
                Exclusivea                             6                  6                  5              17
                Nonexclusive                          10                  5                  9              24
                         b
                Other                                  0                  3                  1               4
                Licensee type
                Large business                         3                  4                  5              12
                Small business/
                individual                            12                 10                  8              30
                Nonprofit                              1                  0                  2               3
                Licensees’
                location
                Domestic                              15                 14                15               44
                Foreign                                1                  0                  0               1
                Total royalties
                received                       $369,249           $477,970           $917,787        $1,765,006
                a
                Includes agency responses “co-exclusive,” ”partially exclusive,” and “assignment.”
                b
                    Includes agency responses “combination exclusive and nonexclusive.”

                Source: GAO’s presentation of data from the Navy.




                Page 38                                           GAO/RCED-99-173 Federal Licensing Statistics
Appendix XIV

Characteristics of the Licenses Granted by
the Department of the Navy, Active as of
October 1, 1998

               Description                                                                                  Number
               Total active licensesa                                                                              83
               License type
               Exclusiveb                                                                                          29
               Nonexclusive                                                                                        46
               Otherc                                                                                               8
               Licensee type
               Large business                                                                                      32
               Small business/individual                                                                           45
               Nonprofit                                                                                            6
               Licensees’ location
               Domestic                                                                                            80
               Foreign                                                                                              3
               a
                The Navy’s license total includes only licenses from which the Navy received royalties in fiscal
               years 1996, 1997, and/or 1998, except for assignments.
               b
                   Includes agency responses “co-exclusive” and ”partially exclusive.“
               c
               Includes agency responses “assignment,” and “combination exclusive and nonexclusive.”

               Source: GAO’s presentation of data from the Navy.




               Page 39                                             GAO/RCED-99-173 Federal Licensing Statistics
Appendix XV

Characteristics of the Licenses Granted and
the Royalties Received by the Department of
the Air Force, Fiscal Years 1996 Through
1998
                                                                     Fiscal year
               Description                       1996                   1997             1998          Total
               Total licenses
               granted                              13                    5                   7          25
               License type
               Exclusive                             4                    3                   2           9
               Nonexclusive                          3                    2                   5          10
               Othera                                6                    0                   0           6
               Licensee type
               Large business                        0                    1                   1           2
               Small business/
               individual                            7                    4                   5          16
               Nonprofit                             0                    0                   1           1
               Unknown                               6                    0                   0           6
               Licensees’
               location
               Domestic                             12                    5                   7          24
               Foreign                               1                    0                   0           1
               Total royalties
               received                     $158,000            $190,000             $212,000       $560,000
               a
                Includes agency responses “co-exclusive,” ”partially exclusive,“ “assignment,” or
               “combination exclusive and nonexclusive.”

               Source: GAO’s presentation of data from the Air Force.




               Page 40                                          GAO/RCED-99-173 Federal Licensing Statistics
Appendix XVI

Characteristics of the Licenses Granted by
the Department of the Air Force, Active as
of October 1, 1998

               Description                                                                          Number
               Total active licenses                                                                     44
               License type
               Exclusive                                                                                 13
               Nonexclusive                                                                              17
               Othera                                                                                    14
               Licensee type
               Large business                                                                             4
               Small business/individual                                                                 28
               Nonprofit                                                                                 12
               Licensees’ location
               Domestic                                                                                  43
               Foreign                                                                                    1
               a
                Includes agency responses “co-exclusive,” ”partially exclusive,“ “assignment,” or
               “combination exclusive and nonexclusive.”

               Source: GAO’s presentation of data from the Air Force.




               Page 41                                          GAO/RCED-99-173 Federal Licensing Statistics
Appendix XVII

Characteristics of the Licenses Granted and
the Royalties Received by the Department of
Energy, Fiscal Years 1996 Through 1998

                                                                      Fiscal year
                Description                       1996                1997                1998                Total
                Total licenses
                granted                              12                  10                   9                   31
                License type
                Exclusive                             1                   0                   2                    3
                Nonexclusive                         11                  10                   7                   28
                Licensee type
                Large business                        3                   3                   2                    8
                Small business/
                individual                            9                   7                   7                   23
                Nonprofit                             0                   0                   0                    0
                Licensees’
                location
                Domestic                              9                  10                   9                   28
                Total royalties
                received                     $111,460            $128,446            $195,269            $435,175
                Note: A majority of the licensing activities resulting from DOE-sponsored research is conducted
                by its contractor-operated laboratories. These were not included in this study.

                Source: GAO’s presentation of data from DOE.




                Page 42                                          GAO/RCED-99-173 Federal Licensing Statistics
Appendix XVIII

Characteristics of the Licenses Granted by
the Department of Energy, Active as of
October 1, 1998

                 Description                                                                               Number
                 Total active licenses                                                                             73
                 License type
                 Exclusive                                                                                         11
                 Nonexclusive                                                                                      62
                 Licensee type
                 Large business                                                                                    29
                 Small business/individual                                                                         43
                 Nonprofit                                                                                          1
                 Licensees’ location
                 Domestic                                                                                          69
                 Foreign                                                                                            4
                 Note: A majority of the licensing activities resulting from DOE-sponsored research is conducted
                 by its contractor-operated laboratories. These were not included in this study.

                 Source: GAO’s presentation of data from DOE.




                 Page 43                                          GAO/RCED-99-173 Federal Licensing Statistics
Appendix XIX

Characteristics of the Licenses Granted and
the Royalties Received by the National
Aeronautics and Space Administration,
Fiscal Years 1996 Through 1998
                                                                  Fiscal year
               Description                     1996                1997             1998             Total
               Total licenses
               granted                            36                 38                37              111
               License type
               Exclusive                          26                 22                24               72
               Nonexclusive                       10                 16                13               39
               Licensee type
               Large business                      4                  4                 5               13
               Small business/
               individual                         31                 33                30               94
               Nonprofit                           1                  1                 2                4
               Licensees’
               location
               Domestic                           36                 38                37              111
               Foreign                             0                  0                 0                0
               Total royalties
               received                   $343,545             $526,192         $600,543        $1,470,280
               Source: GAO’s presentation of data from NASA.




               Page 44                                         GAO/RCED-99-173 Federal Licensing Statistics
Appendix XX

Characteristics of the Licenses Granted by
the National Aeronautics and Space
Administration, Active of as October 1, 1998

               Description                                                                        Number
               Total active licenses                                                                   108
               License type
               Exclusive                                                                                71
               Nonexclusive                                                                             37
               Licensee type
               Large business                                                                           17
               Small business/individual                                                                87
               Nonprofit                                                                                 3
               Unknown                                                                                   1
               Licensees’ location
               Domestic                                                                                107
               Foreign                                                                                   1
               Source: GAO’s presentation of data from NASA.




               Page 45                                         GAO/RCED-99-173 Federal Licensing Statistics
Appendix XXI

Major Contacts and Staff
Acknowledgements

                   Susan Kladiva (202) 512-3841
GAO Contacts       John P. Hunt, Jr. (404) 679-1822
                   Frankie Fulton (404) 679-1805


                   In addition to those named above, Mark Abraham, Deborah Ortega, Paul
Acknowledgements   Rhodes, and Mindi Weisenbloom made key contributions to this report.




(141249)           Page 46                            GAO/RCED-99-173 Federal Licensing Statistics
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