27.304-1
General
FAR 27.304-1 establishes procedures for verifying contractor status, managing patent rights, and ensuring due process for small businesses and nonprofits in federally funded contracts.
Overview
FAR 27.304-1 outlines general procedures and requirements for handling patent rights in contracts with small business concerns and nonprofit organizations. It addresses how agencies should verify contractor status, apply exceptions, process requests for greater rights to inventions, and manage rights retention and assignment. The section also covers procedures for revoking or modifying contractor rights, exercising march-in rights, and special requirements for nonprofit organizations. The regulation ensures that the interests of the government, public, and contractors are balanced in federally funded research and development contracts.
Key Rules
- Verification of Status
- Agencies may require evidence of small business or nonprofit status and may file size protests if necessary.
- Use of Exceptions
- Agencies must follow specific procedures before applying exceptions to patent rights, especially for small businesses and nonprofits, and must allow for administrative review.
- Greater Rights Determinations
- Contractors or their inventors can request greater rights to inventions, and contracting officers must consider public and government interests before granting such rights.
- Retention of Rights by Inventor
- If a contractor declines title to an invention, the agency may allow the inventor to retain rights, subject to certain conditions.
- Assignment of Rights in Co-Invented Inventions
- Agencies may assign rights from government employee co-inventors to contractors, subject to statutory conditions.
- Revocation or Modification of Rights
- Contractors must be given notice and an opportunity to respond before their rights are revoked or modified, with appeal rights provided.
- March-In Rights
- Agencies must follow regulatory procedures when exercising march-in rights.
- Nonprofit Organization Requirements
- Certain actions by nonprofit contractors require agency approval.
Responsibilities
- Contracting Officers: Verify contractor status, follow procedures for exceptions, process greater rights requests, provide notices for revocation/modification, and ensure compliance with regulatory procedures.
- Contractors: Provide evidence of status, request greater rights as needed, comply with rights retention and assignment procedures, and respond to notices regarding rights.
- Agencies: Oversee compliance, process administrative reviews, assign rights appropriately, and follow march-in and licensing procedures.
Practical Implications
- This section ensures proper management of patent rights in federally funded contracts, protecting government and public interests while allowing contractors to benefit from their inventions. Contractors must be proactive in providing documentation, understanding their rights, and responding to agency actions. Common pitfalls include failing to provide timely evidence of status, misunderstanding rights retention, or missing deadlines for appeals or requests.