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

Select target paragraph3