Subpart 27.5
Foreign License and Technical Assistance Agreements
FAR Subpart 27.5 requires contractors to obtain government approval before transferring technical data or patent rights to foreign entities, ensuring compliance with export control laws and national security interests.
Overview
FAR Subpart 27.5 addresses the requirements and procedures for foreign license and technical assistance agreements involving patents, data, and copyrights in government contracts. Its primary purpose is to ensure that any transfer of technical data, know-how, or patent rights to foreign entities complies with U.S. laws, regulations, and national security interests. This subpart outlines the responsibilities of contracting officers and contractors when negotiating, approving, or executing agreements that involve foreign parties, particularly in the context of export controls and technology transfer restrictions.
Key Rules
- Foreign License Agreements
- Contractors must obtain government approval before entering into agreements that grant foreign entities rights to use, manufacture, or sell inventions or technical data developed under government contracts.
- Technical Assistance Agreements
- Any agreement to provide technical assistance or know-how to foreign entities must comply with export control laws and may require government review and approval.
Responsibilities
- Contracting Officers: Ensure proposed foreign license or technical assistance agreements are reviewed for compliance with export controls and national security requirements.
- Contractors: Must seek approval before entering into foreign agreements and comply with all applicable export control regulations.
- Agencies: Oversee and enforce compliance, and may require reporting or additional documentation.
Practical Implications
- This subpart exists to protect U.S. intellectual property and sensitive technology from unauthorized foreign transfer.
- Contractors must be vigilant about compliance with export controls and obtain necessary approvals before sharing technical data or patent rights with foreign entities.
- Common pitfalls include failing to secure required approvals or misunderstanding the scope of export control laws.