27.102
General guidance
FAR 27.102 sets foundational expectations for handling inventions, patents, data rights, and copyrights in government contracts, emphasizing commercial use and proper IP risk management.
Overview
FAR 27.102 provides general guidance on the Government’s approach to intellectual property (IP) issues in federal contracting, including inventions, patents, data rights, and copyrights. It emphasizes maximizing commercial use of contractor inventions, clarifies the Government’s position on patent infringement risks, and outlines expectations for indemnification, data rights, and copyright permissions. The section sets the tone for how contractors and agencies should handle IP matters throughout the contracting process.
Key Rules
- Commercial Use of Inventions
- The Government encourages contractors to make the maximum practical commercial use of inventions developed under Government contracts.
- Patent Infringement and Contract Awards
- The Government generally will not refuse to award contracts due to potential patent infringement and may provide authorization and consent for use of patented inventions.
- Patent Indemnification
- Contractors providing commercial products or services are generally expected to indemnify the Government against U.S. patent infringement liability.
- Rights in Data Developed at Private Expense
- The Government recognizes and limits its rights in data developed at private expense, acquiring only those rights essential to its needs.
- Copyright Permissions
- Contractors must generally obtain permission from copyright owners before including third-party copyrighted works in deliverables to the Government.
Responsibilities
- Contracting Officers: Ensure contract clauses reflect these IP principles and verify contractor compliance.
- Contractors: Maximize commercial use of inventions, indemnify the Government as required, respect data rights, and secure copyright permissions.
- Agencies: Limit data rights demands and authorize patent use when appropriate.
Practical Implications
- This section guides contractors on managing IP risks and obligations in federal contracts. It impacts proposal preparation, contract negotiation, and deliverable management. Common pitfalls include failing to secure necessary IP permissions or misunderstanding indemnification requirements.