Federal Technology Transfer Act of 1985

Federal Technology Transfer Act of 1985 - Amends the Stevenson-Wydler Technology Innovation Act of 1980 (the Act) to require each Federal laboratory director to ensure that efforts to transfer technology are considered positively in laboratory job descriptions, employee promotion policies, and evaluation of the job performance of scientists and engineers in the laboratory.

Requires each Federal laboratory with 200 or more full-time scientific and engineering professionals to have at least one full-time equivalent technology transfer position.

Abolishes the Center for the Utilization of Federal Technology and transfers its functions to the National Technical Information Service (NTIS) and to the Assistant Secretary for Productivity, Technology, and Innovation in the Department of Commerce.

Establishes the Federal Laboratory Consortium for Technology Transfer in the National Science Foundation. Requires the Director of the Foundation to appoint an individual to manage the Consortium and authorizes such individual to appoint Consortium employees.

Sets forth Consortium duties relating to the commercial potential of new technologies generated by Federal laboratory research.

Requires the Director of the Foundation to report annually to the President and to the appropriate authorization and appropriation committees of the Congress on the Consortium and other specified activities.

Requires, for FY 1987 through 1991, Federal agencies to transfer a specified portion of the research and development budget of their laboratories to the Foundation for use by the Consortium in carrying out its activities.

Authorizes the Secretary of Commerce to: (1) make available to interested agencies the expertise of the Department of Commerce regarding the commercial potential of inventions and methods and options for commercialization which are available to the Federal laboratories, including research and development limited partnerships; (2) develop model provisions for use on a voluntary basis in cooperative research and development arrangements, and disseminate such provisions to appropriate agency and laboratory personnel; and (3) furnish advice and assistance to Federal agencies concerning their cooperative research and development efforts. Directs the Secretary, within two years after the enactment of this Act and biennially thereafter, to report to the President and the Congress on the use by the agencies and the Secretary of the authorities specified in the Act.

Authorizes Federal agencies, subject to specified conditions, to permit the directors of their Government-operated Federal laboratories to: (1) enter into cooperative research and development agreements with other Federal agencies, State or local governments, industrial organizations, public and private foundations, nonprofit organizations (including universities), or other persons (including licensees of inventions owned by the Federal agency); and (2) negotiate patent licensing agreements for Government-owned inventions made at the laboratory and other inventions that may be voluntarily assigned to the Government.

Authorizes Government-operated Federal laboratories, under such agreements and subject to specified conditions, to: (1) accept funds, services, and property from collaborating parties and provide services and property to such parties; (2) grant patent licenses or assignments, or options, in any subject invention made by a Federal employee, or made jointly by a Federal employee and an employee of the collaborating party, and to retain such rights as the Federal agency deems appropriate; (3) waive any right of ownership which the Federal Government may have to any inventions made by a collaborating party or such party's employee under the agreement; (4) permit employees or former employees of the laboratory to participate in efforts to commercialize inventions they made while in the service of the United States to the extent consistent with any applicable agency requirements.

Directs each agency to maintain a record of all such agreements.

Requires Federal agencies which expend certain amounts for research and development to establish cash awards programs to reward their scientific, engineering, and technical personnel for inventions or other exemplary activities relating to domestic technology transfer.

Sets forth rules and formulas for the distribution of royalties or other income received by Federal agencies from the licensing or assignment of inventions under such agreements under this Act, and from inventions of Government-operated Federal laboratories licensed under provisions of Federal law relating to domestic and foreign protection of federally owned inventions, or under any other provision of law. Requires Federal agencies to submit annually to the appropriate authorization and appropriation committees of the Congress summaries of the amount of royalties or other income received and expenditures made (including inventor awards) under such rules and formulas.

Authorizes Federal agencies to allow inventors who are current or former Government employees to retain title to inventions made during the course of such employment, unless the Federal agency itself intends to file for a patent application or otherwise promote commercialization. Subjects such title to certain reservations.

Renames the Centers for Industrial Technology as Cooperative Research Centers.