FLC Federal Technology Transfer Mechanisms

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35 USC §§200-212, the Federal Technology Transfer Act of 1986, 15 USC §3710(a), and the regulations governing the licensing of government-owned inventions, 37 CFR Part 404.

A license is a legal agreement by which the owner of a invention allows the licensed party to make, use or sell the invention.

Types of licenses include a Commercial Evaluation License, an Internal Commercial Use License, a Nonexclusive Patent License, or an Exclusive Patent License.
Licensees report annually on their utilization of license patent rights, such as their progress to a commercial product.

Commercial Evaluation Licenses grant the nonexclusive rights to evaluate only the commercial potential of a technology for a limited number of months. May not sell the product.

Internal Commercial Use Licenses grant the nonexclusive right to make and use the invention for the purpose of internal use by the licensee. These licenses do not grant the right to sell or otherwise distribute the invention.
Nonexclusive and Exclusive Patent Licenses allow a company to commercialize the invention under appropriate circumstances pursuant to applicable statutes and regulations. An exclusive license limits the use of the invention to a single group or entity, while a nonexclusive license allows for use by multiple concerns.

Patent rights are normally involved with a license, and royalties and fees are paid by the licensee and subject to negotiation.