Subpart 27.2
Patents and Copyrights
FAR Subpart 27.2 ensures contractors and agencies manage intellectual property risks by addressing infringement, royalties, security, and trade agreement obligations in government contracts.
Overview
FAR Subpart 27.2 addresses the management of patents and copyrights in government contracting. It outlines the responsibilities and procedures for handling patent and copyright infringement, royalty payments, security requirements for classified patent applications, and the use of patented technology under trade agreements. This subpart ensures that both contracting officers and contractors understand their obligations regarding intellectual property rights, potential liabilities, and compliance with U.S. and international regulations. The subpart is organized into sections covering the scope, infringement liability, royalties, security for classified patents, and trade agreement considerations.
Key Rules
- Scope of Subpart (27.200)
- Defines the applicability of the subpart to contracts involving patents and copyrights.
- Patent and Copyright Infringement Liability (27.201)
- Establishes procedures for addressing infringement claims and outlines liability considerations for the government and contractors.
- Royalties (27.202)
- Details requirements for reporting and handling royalties associated with patented or copyrighted materials used in contracts.
- Security Requirements for Classified Patent Applications (27.203)
- Specifies security protocols for patent applications containing classified information.
- Patented Technology Under Trade Agreements (27.204)
- Addresses the use and licensing of patented technology subject to international trade agreements.
Responsibilities
- Contracting Officers: Ensure compliance with patent and copyright regulations, manage infringement claims, and oversee royalty reporting.
- Contractors: Avoid infringement, report royalties, and adhere to security requirements for classified patent applications.
- Agencies: Monitor compliance, provide guidance, and enforce security and trade agreement provisions.
Practical Implications
- This subpart exists to protect the government and contractors from legal and financial risks related to intellectual property.
- It impacts daily contracting by requiring due diligence in the use of patented or copyrighted materials and by mandating proper handling of royalties and classified information.
- Common pitfalls include failing to report royalties, mishandling infringement claims, or neglecting security protocols for classified patent applications.