27.201
Patent and copyright infringement liability
FAR 27.201 requires government contracts to address patent and copyright infringement liability, ensuring both parties understand their responsibilities and protections.
Overview
FAR 27.201 addresses the liability of the U.S. Government and its contractors for patent and copyright infringement arising from the performance of government contracts. It establishes the legal framework for handling claims of infringement, clarifies the government's responsibility, and outlines the use of specific contract clauses to protect both the government and contractors. The section ensures that contractors are aware of their obligations and the procedures for addressing infringement claims, including the inclusion of appropriate clauses in contracts to allocate liability and provide remedies.
Key Rules
- Government Liability for Infringement
- The government may be liable for patent or copyright infringement resulting from authorized or consented activities under a government contract.
- Contract Clauses
- Specific clauses must be included in contracts to address infringement liability, procedures for handling claims, and the rights and responsibilities of both parties.
Responsibilities
- Contracting Officers: Must include the appropriate infringement liability clauses in contracts and manage any claims that arise.
- Contractors: Must comply with contract terms regarding infringement and promptly notify the government of any claims or potential issues.
- Agencies: Oversee compliance and ensure proper handling of infringement claims and contract administration.
Practical Implications
- This section exists to protect both the government and contractors from unexpected legal and financial exposure due to infringement claims.
- It impacts daily contracting by requiring careful attention to intellectual property issues and contract language.
- Common pitfalls include failing to include required clauses or not promptly addressing infringement claims, which can lead to increased liability or disputes.