35 U.S.C. 204, Preference for United States industry

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Source and Index. This document contains Section 204 ("Preference for United States industry") of the U.S. Patent Act. This section was taken from the Eighth Edition, Eighth Revision of the MPEP (July 2010). This page was last updated in January 2011. You may return to the section index to find a particular section. Alternatively, you may search the Patent Act using the search box that appears on the left side of every page of BitLaw--you may restrict your search to Statutes on the search results page.

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35 U.S.C. 204 Preference for United States industry.

Notwithstanding any other provision of this chapter, no small business firm or nonprofit organization which receives title to any subject invention and no assignee of any such small business firm or nonprofit organization shall grant to any person the exclusive right to use or sell any subject invention in the United States unless such person agrees that any products embodying the subject invention or produced through the use of the subject invention will be manufactured substantially in the United States. However, in individual cases, the requirement for such an agreement may be waived by the Federal agency under whose funding agreement the invention was made upon a showing by the small business firm, nonprofit organization, or assignee that reasonable but unsuccessful efforts have been made to grant licenses on similar terms to potential licensees that would be likely to manufacture substantially in the United States or that under the circumstances domestic manufacture is not commercially feasible.

(Added Dec. 12, 1980, Public Law 96-517, sec. 6(a), 94 Stat. 3023.)