[Pustic Law 768—77TH ConcREss]
[CHAPTER 634—2pD Sussron]
[S. 2794]

AN ACT

To provide for adjusting royalties for the use of inventions for the benefit of the
United States, in aid of the prosecution of the war, and for other purposes.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That, to aid in the
- successful prosecution of the War, whenever an invention, whether
patented or unpatented, shall be manufactured, used, sold, or other-
wise disposed of for the United States, with license from the owner
thereof or anyone having the right to grant licenses thereunder, and
such license includes provisions for the payment of royalties the rates
or amounts of which are believed to be unreasonable or excessive by
the head of the department or agency of the Government which has
ordered such manufacture, use, sale, or other disposition, the head of
the department or agency of the Government concerned shall give
written notice of such fact to the licensor and to the licensee. Within
a reasonable time after the effective date of said notice, in no event
less than ten days, the head of the department or agency of the
Government concerned, shall by order fix and specify such rates or
amounts of royalties, if any, as he shall determine are fair and just,
taking into account the conditions of wartime production, and shall
authorize the payment thereof by the licensee to the licensor on
account of such manufacture, use, sale, or other disposition: Pro-
vided, however, That the licensee or licensor, if he so requests within
ten days from and after the effective date of said notice, may within
thirty days from the date of such request present in writing or in
co any facts or circumstances which may, in his opinion, have a

earing upon the rates or amounts of royalties, if any, to be deter-
mined, fixed and specified as aforesaid, and any order fixing and
specifying the rates and amounts of royalties shall be issued within
a reasonable time after such presentation. Such licensee shall not
after the effective date of said notice pay to the licensor, nor charge
directly or indirectly to the United States a royalty, if any, in excess
of that specified in said order on account of such manufacture, use,
sale, or other disposition. The licensor shall not have any remedy
by way of suit, set-off, or other legal action against the licensee for
the payment of any additional royalty remaining unpaid, or damages
for breach of contract or otherwise, but such licensor’s sole and exclu-
sive remedy, except as to the recovery of royaltizs fixed in said order,
shall be as provided in section 2 hereof. Written notice as provided
herein shall be mailed to the last known address of the licensor and
licensee and shall be effective upon receipt or five days after the
mailing thereof, whichever date is the earlier. _

Sec. 2, Any licensor aggrieved by any order issued pursuant to
section 1 hereof, fixing and specifying the maximum rates or amounts
of royalties under a license issued by him, may institute suit against