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A. Definitions. As used in this paragraph, the terms (1) „NATO Government” includes the Government of any nation which is now or hereafter becomes a member of NATO; (2) „Employee” includes a consultant or any other person who furnishes services in the performance of this contract with the consent of Contractor whether or not paid directly by Contractor; (3) „Governmental Purposes” means all manufacture, use and disposal by or for any NATO Government that is necessary or important to the mutual defense of NATO nations; and (4) „Subject Inventions” means all patentable inventions conceived by Contractor's Employees in the performance of the work under this contract, and all patentable inventions owned or controlled by the Contractor which are (a) made, first actually reduced to practice, improved, or further developed as a part of the work under this contract and which have not been covered by a patent application in some country prior to the date of this contract; and (b) conceived by Subcontractors or persons employed by them in the performance of work done under this contract.
B. Employee Agreements. Except as otherwise authorized by the United States Advisor, the Contractor shall not engage or assign any Employee or accept the services of any Employee for, or to work upon this contract except upon the conditions that such Employee (1) agree to assign to the Contractor all inventions, whether or not patentable, he conceives in the performance of work under this contract and all inventions as to which he has the right and power of disposition which are made, first actually reduced to practice, improved or further developed during performance of work under this contract, and which are not covered by a patent application in any country prior to the date of this contract, (2) agree to subscribe all necessary papers including lawful oaths required for the filing and prosecution of applications for patent throughout the world covering the inventions he assigns to the Contractor under provision (1) above; and (3) agree to grant to the Contractor and, upon the request of SHAPE, to NATO Governments on a reasonable and equal basis, an irrevocable, nonexclusive license for Government Purposes under any patents which (1) cover inventions other than Subject Inventions owned or controlled by such Employee at the time of his employment, and (2) which will be necessary to utilize the products or processes developed under this contract. Such license shall be limited to the right to utilize the products or processes developed under this contract.
C. Netherlands Patent Applications. Except as otherwise authorized by the United States Advisor, the Contractor shall file or cause to be filed timely applications for patents in the Netherlands covering all Subject Inventions.
D. Patent Assignments to NATO Governments. Contractor shall provide copies of all Netherlands patent applications covering Subject Inventions to SHAPE for distribution to NATO Governments which are designated by SHAPE and which agree to safeguard the security of information in accordance with NATO Security Regulations, and upon request of any such Government, Contractor shall assign without charge the rights under such patent application within the territorial limits of that Government to such Government, provided that such NATO Government shall have agreed to grant an irrevocable, nonexclusive, royalty-free license within its territorial limits for Governmental Purposes to each other NATO Government under the application and any patent eventuating from such patent application.
E. Contractor's Patent Rights. The Contractor shall have the right to file or cause to be filed patent applications covering Subject Inventions (1) in any country other than NATO countries, but only with the consent of the United States Advisor; and (2) in any NATO country in which the Government of such country shall not have requested an assignment of the patent rights to it as provided in paragraph D above within six months from the date that a copy of the Netherlands application shall have been furnished to such NATO Government. The Contractor agrees to grant to NATO Governments designated by SHAPE irrevocable, nonexclusive, royalty-free licenses for Governmental Purposes under any patent application and any patent eventuating from such patent application which the Contractor shall obtain under the provisions of this subparagraph.
F. Contractor's Patent Returns. Any financial returns derived by Contractor from commercial exploitation of Subject Inventions shall inure to the benefit of the Center during the existence of the Center.
G. License under Contractor's Background Patents. Subject to any other arrangements which may be entered into between the Government of the Netherlands and the Governments of any other NATO countries, the contractor agrees to grant to each NATO Government on a reasonable and equal basis, upon request of SHAPE, an irrevocable, nonexclusive license for Governmental Purposes under any patents which (1) cover inventions other than Subject Inventions owned or controlled by the Contractor at the time of entering into this contract, and (2) will be necessary to utilize the products or processes developed under this contract. Such licenses under such patents shall be limited to the right to use the inventions when necessary to utilize the products or processes developed under this contract.