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<PRE>[DOCID: f:h632enr.txt]
        H.R.632

                       One Hundred Fourth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

         Begun and held at the City of Washington on Wednesday,
   the third day of January, one thousand nine hundred and ninety-six


                                 An Act


 
To enhance fairness in compensating owners of patents used by the United 
                                 States.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. JUST COMPENSATION.

    (a) Amendment.--Section 1498(a) of title 28, United States Code, is 
amended by adding at the end of the first paragraph the following: 
``Reasonable and entire compensation shall include the owner's 
reasonable costs, including reasonable fees for expert witnesses and 
attorneys, in pursuing the action if the owner is an independent 
inventor, a nonprofit organization, or an entity that had no more than 
500 employees at any time during the 5-year period preceding the use or 
manufacture of the patented invention by or for the United States. 
Nothwithstanding the preceding sentences, unless the action has been 
pending for more than 10 years from the time of filing to the time that 
the owner applies for such costs and fees, reasonable and entire 
compensation shall not include such costs and fees if the court finds 
that the position of the United States was substantially justified or 
that special circumstances make an award unjust.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to actions under section 1498(a) of title 28, United States Code, 
that are pending on, or brought on or after, the date of the enactment 
of this Act.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.

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