Part 27 Patents, Data, and Copyrights
Source: FAR 27 on acquisition.gov
FAR Part 27 ensures that intellectual property rights and obligations are clearly defined and managed in federal contracts, protecting both government and contractor interests.
Overview
FAR Part 27, "Patents, Data, and Copyrights," establishes the policies, procedures, and contract clauses related to intellectual property (IP) in federal acquisitions. It covers the Government’s rights and obligations regarding patents, technical data, and copyrights, as well as the responsibilities of contractors and agencies. The part is organized into subparts addressing general guidance, patent and copyright infringement, royalties, patent rights under government contracts, rights in data and copyrights, and foreign license and technical assistance agreements. Each subpart provides detailed requirements for handling IP issues, including reporting, contract clauses, data rights, and procedures for protecting and licensing inventions and data developed under government contracts.
Key Rules
- General Guidance (Subpart 27.1)
- Outlines applicability and provides overarching guidance for handling IP in government contracts.
- Patents and Copyrights (Subpart 27.2)
- Addresses liability for infringement, royalty reporting, government license rights, and security requirements for classified patent applications.
- Patent Rights under Government Contracts (Subpart 27.3)
- Details policies, contract clauses, and procedures for managing inventions and patent rights arising from government-funded work.
- Rights in Data and Copyrights (Subpart 27.4)
- Defines data rights, including unlimited, limited, and restricted rights, and addresses acquisition, use, and protection of data and copyrighted works.
- Foreign License and Technical Assistance Agreements (Subpart 27.5)
- Covers requirements for agreements involving foreign entities or technology transfer.
Responsibilities
- Contracting Officers: Ensure appropriate clauses are included, manage IP issues, and enforce compliance with reporting and protection requirements.
- Contractors: Comply with reporting, marking, and disclosure requirements for inventions, data, and royalties; protect classified information; and adhere to licensing and use restrictions.
- Agencies: Oversee IP management, resolve disputes, and ensure government rights are protected and exercised as needed.
Practical Implications
- FAR Part 27 exists to protect the government’s interests in IP developed or used under federal contracts, while balancing contractor rights and obligations. It impacts daily contracting by requiring careful attention to IP clauses, reporting, and data management. Common pitfalls include failure to properly mark data, inadequate reporting of inventions or royalties, and misunderstanding the scope of government rights.
Subpart 27.2 - Patents and Copyrights
27.201 Patent and copyright infringement liability.
27.202-1 Reporting of royalties.
27.202-2 Notice of Government as a licensee.
27.202-3 Adjustment of royalties.
27.202-5 Solicitation provisions and contract clause.
27.203 Security requirements for patent applications containing classified subject matter.
27.204 Patented technology under trade agreements.
27.204-1 Use of patented technology under the United States-Mexico-Canada Agreement.
27.204-2 Use of patented technology under the General Agreement on Tariffs and Trade (GATT).
Subpart 27.3 - Patent Rights under Government Contracts
27.304-2 Contracts placed by or for other Government agencies.
27.305 Administration of patent rights clauses.
27.305-2 Administration by the Government.
27.305-3 Securing invention rights acquired by the Government.
27.305-4 Protection of invention disclosures.
27.306 Licensing background patent rights to third parties.
Subpart 27.4 - Rights in Data and Copyrights
27.404 Basic rights in data clause.
27.404-1 Unlimited rights data.
27.404-2 Limited rights data and restricted computer software.
27.404-4 Contractor’s release, publication, and use of data.
27.404-5 Unauthorized, omitted, or incorrect markings.
27.404-6 Inspection of data at the contractor’s facility.
27.405 Other data rights provisions.
27.405-3 Commercial computer software.
27.406-2 Additional data requirements.
27.406-3 Major system acquisition.
27.407 Rights to technical data in successful proposals.
27.408 Cosponsored research and development activities.
27.409 Solicitation provisions and contract clauses.
Subpart 27.5 - Foreign License and Technical Assistance Agreements