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
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