27.303
Contract clauses
FAR 27.303 mandates the inclusion of specific patent rights clauses in contracts involving experimental, developmental, or research work, ensuring clear allocation of invention rights and compliance with federal requirements.
Overview
FAR 27.303 outlines the requirements for including patent rights clauses in government contracts involving experimental, developmental, or research work. It specifies when and how to insert the appropriate patent rights clauses, including various alternates, based on the type of work, the nature of the contractor, and the involvement of other agencies or special circumstances. The regulation ensures that the government and contractors clearly understand their rights and obligations regarding inventions and patents arising from federally funded work.
Key Rules
- Patent Rights Clause Requirement
- All solicitations and contracts for experimental, developmental, or research work must include a patent rights clause. This also applies to certain construction and architect-engineer contracts involving novel or experimental work.
- Exclusions for Standard Construction
- Contracts for standard types of construction (routine, previously developed methods) do not require a patent rights clause.
- Clause Selection and Modification
- The default clause is 52.227-11, with various alternates for specific scenarios (e.g., foreign treaties, nonprofit organizations, government-owned facilities, CRADAs).
- Reporting and Documentation
- Contractors may be required to provide periodic invention reports, patent application details, and allow government inspection of patent files.
- Special Procedures for Certain Agencies and Circumstances
- Contracts on behalf of other agencies, or for DoD, DOE, or NASA with large businesses, follow agency-specific procedures. Special rules apply for foreign contractors, exceptional circumstances, and national security concerns.
Responsibilities
- Contracting Officers: Must determine the appropriate patent rights clause and alternates, ensure proper insertion and modification, and require necessary reports and documentation.
- Contractors: Must comply with patent rights clauses, disclose inventions, submit required reports, and provide patent application information as specified.
- Agencies: Oversee compliance, determine exceptional circumstances, and ensure proper clause usage for agency-specific or national security needs.
Practical Implications
- This section ensures the government secures appropriate rights to inventions developed under contract, while allowing contractors to retain certain rights. It impacts contract drafting, compliance tracking, and intellectual property management. Common pitfalls include failing to insert the correct clause, overlooking reporting requirements, or misclassifying the type of work (standard vs. experimental).