27.304-2
Contracts placed by or for other Government agencies
When one agency awards a contract for another, the requesting agency’s patent rights clause and administrative instructions must be followed unless otherwise agreed.
Overview
FAR 27.304-2 outlines the procedures for handling patent rights clauses in contracts awarded by one Government agency on behalf of another. The section ensures that the requesting agency’s requirements for patent rights are respected, particularly when statutory or exceptional circumstances dictate the use of a specific clause. It also clarifies responsibilities for agency determinations, reporting, and administration of inventions resulting from such contracts. The regulation aims to prevent conflicts and ensure proper handling of intellectual property rights when multiple agencies are involved in the contracting process.
Key Rules
- Patent Rights Clause Selection
- The requesting agency must specify the required patent rights clause, and the awarding agency must use it if mandated by law, deviation, or special circumstances.
- Severable vs. Non-Severable Work
- For non-severable, jointly funded work, only the requesting agency’s clause is used; for severable work, the clause applies only to the relevant portion.
- Agency Responsibilities
- The requesting agency is responsible for determinations, reports, deviations, and administration of inventions unless otherwise agreed.
- Handling Invention Disclosures
- The requesting agency may provide instructions for handling invention disclosures and reporting requirements.
Responsibilities
- Contracting Officers: Ensure correct patent rights clauses are included and follow agency instructions for severable/non-severable work.
- Contractors: Comply with the specified patent rights clause and reporting requirements.
- Agencies: Clarify responsibilities for determinations, reporting, and invention administration in advance.
Practical Implications
- This section exists to avoid confusion and legal issues over patent rights in interagency contracts.
- It impacts daily contracting by requiring careful coordination and documentation between agencies.
- Common pitfalls include failing to use the correct clause or not establishing administrative responsibilities in advance.