You will recall that in my testimony before the AEC hearings last April, I stated that the Industrial Nucleonics Corp., although solicited by the AEC, has consistently refused to enter into research and development contracts with the AEC. Prior to these hearings I contacted several other corporations that may be considered leaders in the application of radioisotopes to industry. Each of these companies, except one, had made it clear that they would not enter into a contract with the AEC because of the patent provisions. I am aware that in this instance we are concerned with the NASA and not the AEC directly, however, since the NASA has patterned its patent provisions after that of the AEC I believe the above information may be pertinent. Furthermore, this corporation, similar to other radioisotope industries, is essentially an electronic company. It is more than likely that in the future this company would enter into the space field, either as a prime or subcontractor to the NASA, if the present patent block were removed. I will continue to advise this corporation, and any other corporation having a substantial equity in the development of commercial products, that because of the patent provisions of section 305 of the Space Act it would not be in their best interests to take a NASA research and development contract. Yours very truly, ANTHONY D. CENNAMO, Patent Counsel. STATEMENT OF J. ANTHONY MORAN, GENERAL COUNSEL, SPACE AND My name is J. Anthony Moran and I am general counsel of the Space and Astronautics Foundation which is located at 1001 Connecticut Avenue, Washington, D.C. I am an attorney and was formerly legal consultant of the House Select Committee on Astronautics and Space Exploration and the House Committee on Science and Astronautics. Our foundation is a nonprofit membership organization whose primary purpose is the promotion and advancement of the United States in the worldwide art and science of space technology. We are dedicated, but not limited, to the greater and more efficient utilization and operation of the scientific, educational, and industrial resources and facilities of our country in outer space exploration for peaceful and civilian purposes. Briefly, the demands for governmental action immediately following the first known successful launching of the Russian sputnik was reflected by the legislative program of the Congress of the United States on matters concerned with astronautical and outer space activities. An April 2, 1958, the President sent a special message to the Congress dealing with the continuance of outer space activities under a civilian agency. Thereafter and on the same date, a draft of proposed legislation for implementing the President's message was introduced in both the House and the Senate. After extensive hearings the National Aeronautics and Space Act of 1958 was enacted by the Congress and signed into law on July 29, 1958, as Public Law 85-568. The congressional Select Space Committees took cognizance of the fact that the civilian space agency must be empowered to conduct research programs at its own facilities and further recognized that the desired success in the space program would require a marshaling of all available skills and resources of industry, educational institutions, and other qualified organizations who would proceed as contractors with the National Aeronautics and Space Administration. It was clearly the intent of Congress that the main objective of NASA would be to promote the art of space technology and allied sciences as rapidly and efficiently as possible. The need for such a civilian agency was considered by the Congress to be very urgent in view of the known achievements of the Russians in this field. We are all aware that the Russians continue to surpass any achievements that have been made by us in the field of space exploration for civilian purposes and in view of the policy of the administration the gap will be further widened rather than closed. It is the considered opinion of our foundation that the civilian space agency should be permitted to step up its activities and not be unnecessarily hampered in carrying out its objectives as intended by the Congress. I am familiar with the statements that have been made before this committee by various interested groups and individuals in connection with section 305, the patent provision, of the National Aeronautics and Space Act of 1958. Further, I am familiar with the statements that were made by many of these same interested groups and individuals on this section before the Natcher subcommittee of the House select committee. Part of my duties at the time I was with the committee involved the patent provision before and after the enactment of the Space Act. These groups claimed then as they claim now that section 305 of the Space Act denies NASA the freedom to enter into research and development contracts on terms reasonably calculated to attract the most productive, best qualified, and best equipped companies in industry. Further claims have been made that the patent provision of the act is discriminatory against business, both large and small, that it reduces the incentive of such companies to enter into Government research and development contracts and would produce results which would be adverse to the Nation. Without reservation, these claims should be carefully studied and a complete investigation should be made to determine their validity. A majority of the members of both the House and Senate select committees, after studied consideration of all the factors involved, felt that the present patent provision was necessary. It certainly was not added at the last minute on the floor without public hearings nor was it the result of impromptu legislation. Should further investigation into this matter reveal that section 305 of the act, or any of its subsections, in any way are a hindrance or a barrier to the success of our program for outer space it certainly should be properly stricken from the act, and NASA should be permitted to follow the patent procedures of the Department of Defense. Otherwise, it is the recommendation of this foundation that the amendments proposed by NASA should be favorably considered and adopted by this committee. Because of the nature of our space program many of the various projects have been and may continue to be transferred from the military to the civilian space agency. The basic and fundamental science and technology is similar for both military and civilian space vehicles and satellites. Therefore the foundation feels that the Defense agencies and the civilian space agency should have uniform patent procedures and provisions covering property rights and inventions in the field of space science and technology. Public Law 85-568 AN ACT To provide for research into problems of flight within and outside the earth's atmosphere, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, TITLE I-SHORT TITLE, DECLARATION OF POLICY, AND SHORT TITLE SEC. 101. This Act may be cited as the "National Aeronautics and Space Act of 1958". DECLARATION OF POLICY AND PURPOSE SEC. 102. (a) The Congress hereby declares that it is the policy of the United States that activities in space should be devoted to peaceful purposes for the benefit of all mankind. (b) The Congress declares that the general welfare and security of the United States require that adequate provision be made for aeronautical and space activities. The Congress further declares that such activities shall be the responsibility of, and shall be directed by, a civilian agency exercising control over aeronautical and space activities sponsored by the United States, except that activities peculiar to or primarily associated with the development of weapons systems, military operations, or the defense of the United States (including the research and development necessary to make effective provision for the defense of the United States) shall be the responsibility of, and shall be directed by, the Department of Defense; and that determination as to which such agency has responsibility for and direction of any such activity shall be made by the President in conformity with section 201 (e). National Aeronautics and Space Act of 1958. 72 Stat. 426. (c) The aeronautical and space activities of the United States shall 72 Stat. 427. be conducted so as to contribute materially to one or more of the following objectives: (1) The expansion of human knowledge of phenomena in the atmosphere and space; (2) The improvement of the usefulness, performance, speed, safety, and efficiency of aeronautical and space vehicles; (3) The development and operation of vehicles capable of carrying instruments, equipment, supplies, and living organisms through space; (4) The establishment of long-range studies of the potential benefits to be gained from, the opportunities for, and the problems involved in the utilization of aeronautical and space activities for peaceful and scientific purposes; (5) The preservation of the role of the United States as a leader in aeronautical and space science and technology and in the application thereof to the conduct of peaceful activities within and outside the atmosphere; (6) The making available to agencies directly concerned with national defense of discoveries that have military value or significance, and the furnishing by such agencies, to the civilian agency established to direct and control nonmilitary aeronautical and space activities, of information as to discoveries which have value or significance to that agency; 611 (7) Cooperation by the United States with other nations and groups of nations in work done pursuant to this Act and in the peaceful application of the results thereof; and (8) The most effective utilization of the scientific and engineering resources of the United States, with close cooperation among all interested agencies of the United States in order to avoid unnecessary duplication of effort, facilities, and equipment. (d) It is the purpose of this Act to carry out and effectuate the policies declared in subsections (a), (b), and (c). DEFINITIONS SEC. 103. As used in this Act (1) the term "aeronautical and space activities" means (A) research into, and the solution of, problems of flight within and outside the earth's atmosphere, (B) the development, construction, testing, and operation for research purposes of aeronautical and space vehicles, and (C) such other activities as may be required for the exploration of space; and (2) the term "aeronautical, and space vehicles" means aircraft, missiles, satellites, and other space vehicles, manned and unmanned. together with related equipment, devices, components, and parts. TITLE II-COORDINATION OF AERONAUTICAL AND NATIONAL AERONAUTICS AND SPACE COUNCIL Establishment. SEC. 201. (a) There is hereby established the National Aeronautics and Space Council (hereinafter called the "Council") which shall be composed of 72 Stat. 427. 72 Stat. 428. Alternate. (1) the President (who shall preside over meetings of the Council); (2) the Secretary of State; (3) the Secretary of Defense; (4) the Administrator of the National Aeronautics and Space Administration; (5) the Chairman of the Atomic Energy Commission; (6) not more than one additional member appointed by the President from the departments and agencies of the Federal Government; and (7) not more than three other members appointed by the President, solely on the basis of established records of distinguished achievement, from among individuals in private life who are eminent in science, engineering, technology, education, administration, or public affairs. (b) Each member of the Council from a department or agency of the Federal Government may designate another officer of his department or agency to serve on the Council as his alternate in his unavoidable absence. (c) Each member of the Council appointed or designated under paragraphs (6) and (7) of subsection (a), and each alternate member designated under subsection (b), shall be appointed or designated to serve as such by and with the advice and consent of the Senate, unless at the time of such appointment or designation he holds an office in the Federal Government to which he was appointed by and with the advice and consent of the Senate. (d) It shall be the function of the Council to advise the President with respect to the performance of the duties prescribed in subsection (e) of this section. (e) In conformity with the provisions of section 102 of this Act, it Duties of shall be the duty of the President to (1) survey all significant aeronautical and space activities, including the policies, plans, programs, and accomplishments of all agencies of the United States engaged in such activities; (2) develop a comprehensive program of aeronautical and space activities to be conducted by agencies of the United States; (3) designate and fix responsibility for the direction of major aeronautical and space activities; (4) provide for effective cooperation between the National Aeronautics and Space Administration and the Department of Defense in all such activities, and specify which of such activities may be carried on concurrently by both such agencies notwithstanding the assignment of primary responsibility therefor to one or the other of such agencies; and (5) resolve differences arising among departments and agencies of the United States with respect to aeronautical and space activities under this Act, including differences as to whether a particular project is an aeronautical and space activity. President. (f) The Council may employ a staff to be headed by a civilian Employees. executive secretary who shall be appointed by the President by and Compensation. with the advice and consent of the Senate and shall receive compensation at the rate of $20,000 a year. The executive secretary, subject to the direction of the Council, is authorized to appoint and fix the compensation of such personnel, including not more than three persons who may be appointed without regard to the civil service laws or the Classification Act of 1949 and compensated at the rate of not more 63 Stat. 954. than $19,000 a year, as may be necessary to perform such duties as may 5 USC 1071 be prescribed by the Council in connection with the performance of note. its functions. Each appointment under this subsection shall be subject to the same security requirements as those established for personnel of the National Aeronautics and Space Administration appointed under section 203 (b) (2) of this Act. Security cheok. Per diem. 72 Stat, 428. 72 Stat. 429. (g) Members of the Council appointed from private life under subsection (a) (7) may be compensated at a rate not to exceed $100 per diem, and may be paid travel expenses and per diem in lieu of subsistence in accordance with the provisions of section 5 of the Administrative Expenses Act of 1946 (5 U..S. C. 73b-2) relating to persons 69 Stat. 394. serving without compensation. NATIONAL AERONAUTICS AND SPACE ADMINISTRATION SEC. 202. (a) There is hereby established the National Aeronautics Administrator. and Space Administration (hereinafter called the "Administration"). The Administration shall be headed by an Administrator, who shall be appointed from civilian life by the President by and with the advice and consent of the Senate, and shall receive compensation at the rate of $22,500 per annum. Under the supervision and direction of the President, the Administrator shall be responsible for the exercise of all powers and the discharge of all duties of the Administration, and shall have authority and control over all personnel and activities thereof. (b) There shall be in the Administration a Deputy Administrator, Deputy who shall be appointed from civilian life by the President by and with Administrator. the advice and consent of the Senate, shall receive compensation at the rate of $21,500 per annum, and shall perform such duties and exercise |