[Federal Register Volume 70, Number 142 (Tuesday, July 26, 2005)]
[Rules and Regulations]
[Pages 43070-43072]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-14657]


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NATIONAL SCIENCE FOUNDATION

45 CFR Part 650

RIN 3145-AA44


Minor Amendments To Rule on Inventions and Patents Resulting From 
Grants, Cooperative Agreements, and Contracts

AGENCY: National Science Foundation.

ACTION: Final rule.

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SUMMARY: This final rule will amend the NSF Patents regulation to 
require grantees to use an electronic reporting and management system 
for inventions made with NSF assistance.

DATES: Effective Date: These changes are effective July 29, 2005.

FOR FURTHER INFORMATION CONTACT: Robin Clay Fritsch, NSF Patent 
Assistant, at patents@nsf.gov or on (703) 292-8060 (voice) or (703) 
292-9041 (facsimile).

Background

    This amendment revises the current NSF patent regulation published 
as part 650 of title 45 of the Code of Federal Regulations to require 
NSF awardees to use the Edison Invention Information Management System 
maintained by the National Institutes of Health to handle NSF-assisted 
inventions. This is consistent with the Foundation's requirement that 
all proposals seeking NSF financial assistance and all reports on NSF-
assisted projects be submitted electronically.

[[Page 43071]]

Summary of Comments and Explanation

    NSF received two comments to the proposed amendments. The first 
comment questioned the legal transfer of money out of an account 
regulated by the banking industry. It has been determined that this 
recommendation is beyond the scope of the regulation and, so, is not 
included in the final. The second comment advised NSF that the 
commentor would prefer to continue to use paper for patent reporting. 
This issue is addressed in Section 650.19(b), which allows grantees to 
request from the NSF Patent Assistant permission to submit material in 
other forms.

Determinations

Regulatory Evaluation

    This rule is not a ``significant regulatory action'' under section 
3(f) of Executive Order 12866, Regulatory Planning and Review, and does 
not require an assessment of potential costs and benefits under section 
6(a)(3) of that Order. The Office of Management and Budget has not 
reviewed it under that Order.

Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601-612), I have 
considered whether this rule would have a significant economic impact 
on a substantial number of small entities. The term ``small entities'' 
comprises small businesses, not-for-profit organizations that are 
independently owned and operated and are not dominant in their fields, 
and governmental jurisdictions with populations of less than 50,000. I 
certify under 5 U.S.C. 605(b) that this proposed rule would not have a 
significant economic impact on a substantial number of small entities. 
This rule would possibly affect the following entities, some of which 
may be small entities: NSF grantees, including those funded under our 
Small Business Innovation Research and Small Business Technology 
Transfer Programs, and recipients of subcontracts under NSF grants.

Collection of Information

    This rule would call for no new collection of information under the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

Federalism

    A rule has implications for federalism under Executive Order 13132, 
Federalism, if it has a substantial direct effect on State or local 
governments and would either preempt State law or impose a substantial 
direct cost of compliance on them. I have analyzed this rule under that 
Order and have determined that it does not have implications for 
federalism.

Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) 
requires Federal agencies to assess the effects of their discretionary 
regulatory actions. In particular, the Act addresses actions that may 
result in the expenditure by a State, local, or tribal government, in 
the aggregate, or by the private sector of $100,000,000 or more in any 
one year. This rule would not result in such an expenditure.

Taking of Private Property

    This proposed rule would not effect a taking of private property or 
otherwise have taking implications under Executive Order 12630, 
Governmental Actions and Interference with Constitutionally Protected 
Property Rights.

Civil Justice Reform

    This rule meets applicable standards in sections 3(a) and 3(b)(2) 
of Executive Order 12988, Civil Justice Reform, to minimize litigation, 
eliminate ambiguity, and reduce burden.

Protection of Children

    I have analyzed this rule under Executive Order 13045, Protection 
of Children from Environmental Health Risks and Safety Risks. This rule 
is not an economically significant rule and would not create an 
environmental risk to health or risk to safety that might 
disproportionately affect children.

Indian Tribal Governments

    This rule does not have tribal implications under Executive Order 
13175, Consultation and Coordination with Indian Tribal Governments, 
because it would not have a substantial direct effect on one or more 
Indian tribes, on the relationship between the Federal Government and 
Indian tribes, or on the distribution of power and responsibilities 
between the Federal Government and Indian tribes.

Energy Effects

    I have analyzed this rule under Executive Order 13211, Actions 
Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use, and determined that it is not a ``significant 
energy action'' under that order because it is not a ``significant 
regulatory action'' under Executive Order 12866 and is not likely to 
have a significant adverse effect on the supply, distribution, or use 
of energy. The Administrator of the Office of Information and 
Regulatory Affairs has not designated it as a significant energy 
action. Therefore, it does not require a Statement of Energy Effects 
under Executive Order 13211.

Technical Standards

    The National Technology Transfer and Advancement Act (NTTAA) (15 
U.S.C. 272 note) directs agencies to use voluntary consensus standards 
in their regulatory activities unless the agency provides Congress, 
through the Office of Management and Budget, with an explanation of why 
using these standards would be inconsistent with applicable law or 
otherwise impractical. Voluntary consensus standards are technical 
standards (e.g., specifications of materials, performance, design, or 
operation; test methods; sampling procedures; and related management 
systems practices) that are developed or adopted by voluntary consensus 
standards bodies.
    This rule does not use technical standards. Therefore, we did not 
consider the use of voluntary consensus standards.

List of Subjects in 45 CFR Part 650

    Government procurement, Grant programs--science and technology, 
Inventions and patents, Nonprofit organizations, Small businesses.


0
Accordingly, Title 45 of the Code of Federal Regulations part 650 is 
amended as follows:

PART 650--PATENTS

0
1. The authority citation for part 650 continues to read as follows:

    Authority: 35 U.S.C. 200-212; 42 U.S.C. 1870(e) and 1871; and 
the Presidential Memorandum entitled ``Government Patent Policy,'' 
issued February 18, 1983.


0
2. The Patent Rights clause set forth in Sec.  650.4(a) is amended:
0
A. By revising ``SEPTEMBER, 1997'' in its heading to read ``AUGUST, 
2005.''
0
B. In the second sentence of paragraph (c)(1), by revising the words 
``shall be in the form of a written report'' to read ``will be 
submitted via the iEdison Invention Information Management System 
maintained by the National Institutes of Health'';
0
C. In paragraph (f)(5), by revising the words ``forward to NSF'' to 
read ``submit electronically to NSF via the iEdison Invention 
Information Management System maintained by the National Institutes of 
Health''; and
0
D. By revising paragraph (1) to read as follows:

[[Page 43072]]

Sec.  650.4  Standard patent rights clause.

* * * * *
    (1) Communications. All communications required by this Patents 
Rights clause must be submitted through the iEdison Invention 
Information Management System maintained by the National Institutes of 
Health unless prior permission for another form of submission is 
obtained from the Patent Assistant at patents@nsf.gov or at Office of 
the General Counsel, National Science Foundation, 4201 Wilson 
Boulevard, Arlington, VA 22230.
* * * * *

0
3. Section 650.19 is revised to read as follows:


Sec.  650.19  Electronic invention handling.

    (a) Grantees must use the iEdison Invention Information Management 
System maintained by the National Institutes of Health to disclose NSF 
subject inventions. Detailed instructions for use of that system are 
provided at http://s-edison.info.nih.gov/iEdison/ and should be 
followed for NSF subject inventions except that:
    (1) All communications required must be provided electronically as 
a PDF or TIFF file through iEdison unless prior permission for another 
form of submission is obtained from the Patent Assistant.
    (2) NSF does not require either an Annual Utilization Report or a 
Final Invention Statement and Certification.
    (b) Questions on use of iEdison and requests for permission to 
submit material in other forms may be sent to the NSF Patent Assistant 
at patents@nsf.gov or at Office of the General Counsel, National 
Science Foundation, 4201 Wilson Boulevard, Arlington, VA 22230.

Amy Northcutt,
Deputy General Counsel.
[FR Doc. 05-14657 Filed 7-25-05; 8:45 am]
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