ADDITIONAL SBIR AND STTR PROVISIONS.

SEC. 305. ADDITIONAL SBIR AND STTR PROVISIONS. Section 9 of the Small Business Act (15 U.S.C. 638), is amended by adding at the end the following new subsection: “(r) Third Phase Agreements.— “(1) In general.— In the case of a small business concern that is awarded a funding agreement for the second phase of an SBIR or STTR program, a Federal agency may enter into a third phase agreement with that business concern for additional work to be performed during or after the second phase period. The second phase funding agreement with the small business concern may, at the discretion of the agency awarding the agreement, set out the procedures applicable to third phase agreements with that agency or any other agency. 106 STAT. 4263 “(2) Definition.— In this subsection, the term ‘third phase agreement‘ means a follow-on, non-SBIR or non-STTR funded contract as described in paragraph (4)(C) or paragraph (6)(C) of subsection (e). “(3) Intellectual property rights.— Each funding agreement under an SBIR or STTR program shall include provisions setting forth the respective rights of the United States and the small business concern with respect to intellectual property rights and with respect to any right to carry out follow-on research.”.