The testimony of the Patent Counsel for the Department of Health, Education and Welfare concerns patent protection that ought to be afforded to an industrial developer to assure use by or transfer to such a developer of inventive results of Department-sponsored research. The application of this policy to universities is discussed and the Federal Council on Science and Technology's Committee on Government Patent Policy recommendations are outlined. This includes providing the university the first option to ownership on inventions generated with Federal support, subject to certain limitations. Some basic premises regarding Federal support and university/industry relations and some primary problems that need to be overcome before optimum results in transferring technolgoy could be achieved are also discussed. (JMF)