Exemption from trademark licensing fees for certain military exchange contractors

Section 2260 of title 10, United States Code, is amended— (1) in subsection (a), by striking and may retain and inserting and may, except as provided in subsection (f), retain; (2) in subsection (b), by striking The Secretary concerned and inserting Except as provided in subsection (f), the Secretary concerned; (3) by redesignating subsection (f) as subsection (g); and (4) by inserting after subsection (e) the following new subsection: (f) Exemption for long-term exchange contractors (1) The Secretary concerned may not require contractor performing a contract of one year or longer with a military exchange— (A) to be subject to any fee described in subsection (a) or (b); (B) to obtain approval from the trademark and licensing office of a military department for the production or sale of items sold through such exchange; or (C) to pay a royalty or other licensing fee to the trademark and licensing office of a military department, including any royalty or other licensing fee collected pursuant to a licensing agreement authorized under this section, in connection with the production or sale of items through such exchange or a Morale, Welfare, and Recreation program. (2) In this subsection, the term Morale, Welfare, and Recreation program means a nonappropriated fund activity providing community support, recreational, and quality-of-life services to members of the armed forces and dependents of such members, as authorized under chapter 147 of title 10..