27.204-2 Use of patented technology under the General Agreement on Tariffs and Trade (GATT)
Source: FAR 27.204-2 on acquisition.gov
Government use of patented technology may be authorized under international trade agreements, even without the patent holder's consent, provided legal requirements are met.
Overview
FAR 27.204-2 addresses the use of patented technology in the context of international trade agreements, specifically referencing Article 31 of the TRIPS Agreement (Annex 1C to GATT) and Article 20.40 of the United States-Mexico-Canada Agreement (USMCA). These provisions allow for the use of patented inventions by governments without the patent holder's authorization under certain legal conditions. The regulation ensures that U.S. government contracts comply with these international obligations, particularly when procuring goods or services that may involve patented technology from member countries. Contractors should be aware that government use of patented technology may be permitted without prior authorization, but must still comply with applicable laws and procedures.
Article 31 of Annex 1 C, Agreement on Trade-Related Aspects of Intellectual Property Rights, to GATT (Uruguay Round) addresses situations where the law of a member country allows for use of a patent without authorization, including use by the Government. Article 20.40 of the United States-Mexico-Canada Agreement preserves parties' rights under Article 31.