Patented technology under trade agreements
FAR 27.204 ensures that government contracts subject to USMCA or GATT properly address the use of patented technology in compliance with both U.S. law and international trade agreements.
Overview
FAR 27.204 addresses the use of patented technology in government contracts that are subject to international trade agreements, specifically the United States-Mexico-Canada Agreement (USMCA) and the General Agreement on Tariffs and Trade (GATT). This section outlines the requirements and procedures for handling patented technology when trade agreements apply, ensuring that contractors and contracting officers comply with both U.S. patent law and the obligations under these international agreements. The section references two subsections: 27.204-1 (USMCA) and 27.204-2 (GATT), each providing specific guidance for contracts covered by these agreements. The intent is to clarify how patented technology should be managed to avoid infringement and to respect the rights and obligations established by trade agreements.
Key Rules
- Patented Technology under USMCA
- Contracts subject to the USMCA must follow specific procedures for the use of patented technology, as detailed in 27.204-1.
- Patented Technology under GATT
- Contracts subject to GATT must adhere to the requirements in 27.204-2 regarding patented technology.
Responsibilities
- Contracting Officers: Must identify when a contract is subject to USMCA or GATT and ensure compliance with the relevant procedures for patented technology.
- Contractors: Must be aware of and comply with any restrictions or obligations related to patented technology under applicable trade agreements.
- Agencies: Must provide oversight to ensure contracts comply with both U.S. patent law and international trade agreement obligations.
Practical Implications
- This section exists to prevent patent infringement and ensure compliance with international trade obligations.
- It impacts daily contracting by requiring careful review of contract terms when trade agreements apply.
- Common pitfalls include failing to recognize when a contract is subject to these agreements or misunderstanding the requirements for patented technology use.