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Technology Transfer: Barriers Limit Royalty Sharing's Effectiveness

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Report Type Reports and Testimonies
Report Date Dec. 7, 1992
Report No. RCED-93-6
Subject
Summary:

Despite the introduction of royalty-sharing programs at government laboratories, federal scientists' interest in patenting has not increased. Many scientists said that the small financial rewards, such as those paid under some royalty-sharing programs, offer little incentive to patent. For example, 17 of 21 agencies GAO reviewed use royalty-sharing formulas that often pay an individual only a few hundred dollars for an invention. GAO also found inadequate financial controls over payments to inventors. In addition, agency management is using virtually all of the laboratory's share of invention income to cover the administrative costs of transferring federal technology to U.S. companies, meaning that the benefits of royalty sharing are not visible to other potential inventors.

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