Technology Transfers Between Military, Civilian, and Foreign Markets

1. Technology Transfers Between Military, Civilian, and Foreign Markets Dr. Michael A. Kuliasha, Chief Technologist Air Force Research Laboratory AFMC Senior Leaders Conference AFA Technology Symposium September 3, 2009

2. Who is transferring what to whom? The Stevenson-Wydler Technology Innovation Act of 1980 (Public Law 96-480) established the foundation for technology transfer within the Federal government “It is the purpose of this Act to improve the economic, environmental, and social well-being of the United States by… stimulating improved utilization of federally funded technology developments, including inventions, software, and training technologies, by State and local governments and the private sector.”

3. Technology transfer originally perceived as Federal Government-Out Industry Federal Government Foreign Markets State and Local Government

4. Who is transferring what to whom? U.S. Government would be #23 – right behind Honda!

5. WPAFB Invention Disclosures

6. Air Force Patents Issued

7. AFMC Tech Transfer Challenges • Manning Shortages • 2 Patent Attorney Vacancies • Increasing Technology Transfer Emphasis • Goal of AF T2 Program Manager to Increase T2 Activities by 25-50% in FY09 • Conducting S&E training on inventions • Administration/Enforcement of Patent Licenses

8. U.S. R&D Funding by Source(expenditures in billions of constant 2007 dollars)

9. 2% Asia Share 1996: 26% 2006: 36% 2% 38% 4% 3% 16% 28% 1% 2% <1% 3% 1% * UIS S&T database; World Bank - PPP data +96% 2% 2% EU 24% 32% 13% 13% 3% 1% 4% <1% 3% 1% ** OECD 2007 PPP; 2007 Global R&D Report (Battelle) The world is flat – science is flatter! Global S&T Investment: 1996 - $518B, 2006 - $1,015B

10. U.S. no longer exclusive leader in science and technology Major new scientific facilities are international Many high-tech COTS products manufactured abroad U.S. industry has reduced corporate R&D Military applications no longer leading source of innovation International Thermonuclear Experimental Reactor – world’s largest energy experiment (Russia, China, Japan, EU, Korea, India, and U.S.) CERN - world's largest particle physics laboratory (France) Earth Simulator – world’s fastest computer (Japan)

11. Spin-in Examples MIOX Water Purifier Blackberry Oakley SI M 2.0 Frame Surefire M6 Guardian

12. Technology Transfer Labs Companies DoD Warfighters Technology Transition Traditional Air Force concepts of technology transition and technology transfer are obsolete Transition: Formal Acquisition process of delivering products to the Warfighter (program of record.) Transfer: Process of working with non-government entities to share and exchange technology (non-contract activities outside of the Federal Rules of Acquisition).

13. 21st century science and technology transfer is multi-directional U.S. Industry International Industry U.S. Government Foreign Governments U.S. Academia Foreign Academia

14. Technology Transfer Mechanisms Government to Government Government to Industry Alliances Contracts National Defense Authorization Act for FY 2006 Stevenson-Wydler Technology Innovation Act of 1980 Commercialization Pilot Program (CPP) Grants Cooperative Agreements National Defense Authorization Act for FY 1994 CTA Bayh-Dole Act of 1980 Technology Transfer Patent License Agreement (PLA) National Defense Authorization Act for FY 1993 Dual Use Small Business Innovation Development Act of 1982 SBIR Small Business Research & Development Act of 1992 STTR Federal Technology Transfer Act of 1986 CRADA National Defense Authorization Act for FY 1991 Mentor-Protégé National Competitiveness Technology Transfer Act of 1989 EPA IR&D Education Outreach Other Transaction Authority (OTA) Partnership Intermediaries (PIA) Technology Investment Agreement (TIA)

15. Technology transfer adds value to Air Force programs • Expands both Air Force and partner capabilities • Provide/receive facilities & equipment • Share research results • Access critical expertise • Reduce the overall schedule of programs • Collaborate on research • Conduct additional research of interest

16. AFRL’s technology transfer covers a range of products • Stimulus for new operational concepts and requirements elicitation Human Factors • Thorough understanding of the key physics – often embodied in computer models System Design - DSX Space Sensors - VAST • Key technologies for the product centers and users

17. Technology transfer influenced by a range of issues • Challenges • International Traffic in Arms Regulations (ITAR) • Foreign national limitations • Classification • Internationalization – what is a U.S. company? • Intellectual property • No “AFRL Inside” to identify a successful transfer • Opportunities • CRADAs • International cooperative agreements • Increasing speed to market • Collaboration centers

18. Cooperative Research and Development Agreements (CRADAs) • A written agreement between one or more TDs and one or more non-federal parties under which the TD(s) provides personnel, facilities, equipment or other resources with or without reimbursement (but not funds to non-federal parties) • The non-federal parties provide funds, people, services, facilities, equipment, or other resources to conduct specific research or development efforts that are consistent with the TD’s mission • The objective of a CRADA is R&D and can include testing

19. CRADA Details • Authorizes exchange of personnel, services, facilities, equipment or other resources toward the conduct of specified R&D effort consistent with lab mission • Authorizes parties to determine rights in inventions, patents and other intellectual property • Not a procurement contract/grant • Trade secret and commercial and financial information protected from disclosure under the Freedom of Information Act • Preference for small business and businesses located in the US • Allows for Quid Pro Quo • Collaborator may provide research dollars

20. Air Force and Non-Disclosure Agreements • Industry/Academia was not satisfied with the protection afforded them under the Trade Secrets Act (18 USC 1905) • “… unauthorized disclosure…shall be fined under this title, or imprisoned not more than one year, or both; and shall be removed from office or employment.” • Industry wanted the Air Force to sign a “traditional” non-disclosure agreement • In general, Air Force does not have the authority to sign NDAs • Air Force Legal Counsel recommends that individual Air Force employees do NOT sign NDAs • Most AF employees not authorized to bind the government, therefore would be personally liable

21. Special Purpose (SP)-CRADA NDA • Mechanism that addresses the desire to exchange confidential and proprietary information and discuss that information between an Air Force laboratory and industry/academia BEFORE being able to determine whether it is beneficial to enter into a full CRADA • Based on CRADA Statute and extends authority for CRADAs to protect initial discussions concerning Technologies/Research that would eventually occur under a CRADA • Typically utilized where there is concern about the protection of information and/or Intellectual Property • This approach is unique to Air Force

22. General NDA Characteristics • Limited in Scope • Short-Form Agreement • Specifically covers Information Disclosures • Does not cover Actual Research Activities • Limited Life of Agreement • Quick Turn-Around NDAs are not intended to: • Be signed and reviewed by Senior Leadership • Serve as a formal long-term collaboration vehicle Other NDAs are signed as new discussions are identified

23. Export control regulations are a major challenge to tech transfer • What is an export? • Simple definition: an “export” is the transfer of anything to a “foreign person” at any place, any time, by any method • “anything” = physical item, data, services, assistance, etc. • “foreign person” = individual, entity, embassy, agency, or agent of foreign interest • Full definitions of “export” and “foreign person” are listed in various regulations • US export control regulations currently in effect • Depts of Interior, Energy, Commerce, State, Treasury, Justice, also the FDA, DEA, EPA, even Health & Human Services, • Multilateral Export Control Regimes • Missile Technology Control Regime (Missile & WMD Delivery Technology) • Wassenaar Arrangement (Dual Use & Munitions) • Australia Group (Chemical & Biological) • Nuclear Suppliers Group (Nuclear Proliferation)

24. Non U.S. Citizen with No Right to Work in U.S. Under the International Traffic in Arms Regulations Under the National Industrial Security Program Operating Manual Non U.S. Citizen with Temporary U.S. Work Permit Foreign Person Foreign National Non U.S. Citizen with Permanent Resident Status or Refugee / Asylee Status U.S. Person U.S. Citizen (unless employed by a Foreign Company) Under the Export Administration Regulations Any citizen or permanent resident Alien of the United States, protected individual, juridical person organized under U.S. laws (including foreign branches), and any person in the United States. Foreign Person vs. U.S. Person

25. AFRL has established collaborative institutes at its major operating locations C E N T E R

26. Need to change “not invented here” to “proudly found elsewhere”