Subpart 27.3
Patent Rights under Government Contracts
FAR Subpart 27.3 ensures that patent rights arising from government contracts are properly managed, balancing government interests with contractor rights and compliance obligations.
Overview
FAR Subpart 27.3 establishes the rules and procedures governing patent rights under government contracts. It outlines the government's policy on inventions made during contract performance, defines key terms, prescribes required contract clauses, and details procedures for managing and administering patent rights. The subpart also addresses the licensing of background patent rights to third parties. Its primary goal is to balance the government's need to use inventions developed under contract with the contractor's rights, ensuring compliance with statutory and regulatory requirements. This subpart applies to most federal contracts where inventions may be conceived or first actually reduced to practice during contract performance.
Key Rules
- Scope and Definitions
- Defines the applicability of patent rights regulations and clarifies key terms used throughout the subpart.
- Policy
- Establishes the government's stance on ownership, use, and licensing of inventions made under government contracts.
- Contract Clauses
- Specifies which patent rights clauses must be included in contracts, depending on contractor type and contract circumstances.
- Procedures
- Details the steps for reporting inventions, electing title, and handling waivers or disputes.
- Administration and Licensing
- Outlines the responsibilities for administering patent rights clauses and the process for licensing background patents to third parties.
Responsibilities
- Contracting Officers: Ensure proper clauses are included, monitor compliance, and administer patent rights provisions.
- Contractors: Disclose inventions, comply with reporting and election requirements, and adhere to licensing and use restrictions.
- Agencies: Oversee compliance, resolve disputes, and manage government interests in inventions.
Practical Implications
- Ensures inventions made under government contracts are properly disclosed and rights are allocated according to law and policy.
- Impacts how contractors protect and commercialize inventions developed with federal funding.
- Common issues include failure to disclose inventions, improper clause usage, and misunderstandings about rights allocation.