27.501
General
Agencies must establish and enforce policies to manage foreign technical assistance and license agreements involving intellectual property, ensuring unnecessary royalty charges are avoided.
Overview
FAR 27.501 requires federal agencies to establish policies and procedures for managing foreign technical assistance agreements and license agreements that involve intellectual property. The regulation emphasizes the importance of avoiding unnecessary royalty charges in these agreements. This section serves as a foundational requirement for agencies to ensure that intellectual property rights are properly managed and that government interests are protected when entering into agreements with foreign entities.
Key Rules
- Agency Policy and Procedures
- Agencies must develop and implement policies and procedures for handling foreign technical assistance and license agreements involving intellectual property.
- Avoidance of Unnecessary Royalties
- Agencies are responsible for ensuring that agreements do not include unnecessary royalty charges, protecting the government from excessive costs.
Responsibilities
- Contracting Officers: Ensure that agency policies are followed when processing foreign technical assistance and license agreements involving intellectual property.
- Contractors: Comply with agency-specific requirements regarding intellectual property and royalty charges in foreign agreements.
- Agencies: Develop, communicate, and enforce policies and procedures to manage intellectual property in foreign agreements and prevent unnecessary royalty payments.
Practical Implications
- This section exists to safeguard government interests in intellectual property when dealing with foreign entities.
- It impacts daily contracting by requiring careful review of royalty provisions and adherence to agency-specific policies.
- Common pitfalls include overlooking royalty clauses or failing to follow established agency procedures, which can lead to unnecessary costs or compliance issues.