OFFICIAL USE ON! VY O.P.S. 75-6 8/12/74 I. - 2 - August 12, 1974 SECY-75-66 - Request for Proposals for Demonstration Centrifuge Enrichment Facilities A. (DCEF) Schwennesen described and discussed the following Similarities and differences between the requirements of 19 CFR 25 and these patents and data features proposed in Mr, the RFP tor tne DCEF: COMPANY DEVELOPED PATENT AND TECHNICAL DATA 10 CFR 25 Private Enriching Gov't obtains non-exclusive RFP - DCEF . ’ Private Enriching Exists Non Exists Exists yes yes yes no yes no Non Exists yes license to use in production or enrichment of SNM Gov't must pay a reasonable roy alty for the non- no ~ exclusive license The Priv ate Enrichment Coordination Board's majority position is that in view of the expected substantial Government contribution to a DCE F program, the Government should receive a royalty free license to use private developments resulting from the DCEF pro- gram in the production or enrichment of SNM. B. The Commission noted: 1. Mr. LeGassie's statements that the AEC under 10 CFR 25 would receive a 3% royalty on revenues from the use of the AEC's technology if a private enricher provides an enriching service, but if a private enricher does not so commit and the government uses industry's patents and technical data in constructing additional Capacity, then the government should pay a reasonable royalty for so doing -- in effect giving industry a reasonable return on its investment; Mr. Rowden's statements that: a. accepting the position that the AEC should not have to pay a royalty cannot be viewed as changing the terms and conditions of the 10 CFR 25 access OFFICIAL USE ONLY