31.205-30 Patent costs
Source: FAR 31.205-30 on acquisition.gov
Only patent costs directly required by the contract or for general counseling are allowable; all other patent costs are unallowable.
Overview
FAR 31.205-30 addresses the allowability of patent-related costs under government contracts. It specifies which patent costs can be charged to the government, focusing on those that are directly required by the contract. The regulation distinguishes between allowable and unallowable patent costs, providing clear guidance for contractors on what expenses can be included in their cost submissions.
Key Rules
- Allowable Patent Costs
- Costs for preparing invention disclosures, reports, and related documents required by the contract are allowable.
- Costs for conducting necessary art searches to support invention disclosures are allowable.
- Costs associated with filing and prosecuting a U.S. patent application, when the Government is to receive title or a royalty-free license, are allowable.
- General Counseling Services
- General patent counseling services (e.g., advice on patent laws, regulations, and employee agreements) are allowable.
- Unallowable Patent Costs
- Patent costs not required by the contract, except for general counseling services, are unallowable.
Responsibilities
- Contracting Officers: Must ensure only allowable patent costs are accepted and reimbursed.
- Contractors: Must segregate and document patent costs, ensuring only contract-required and allowable costs are claimed.
- Agencies: Should review and audit patent cost submissions for compliance.
Practical Implications
- This section ensures that the government only pays for patent costs that are necessary for contract performance or required by contract terms.
- Contractors must carefully track and justify patent-related expenses, as improper claims can lead to disallowance or audit findings.
- Common pitfalls include charging unrelated patent costs or failing to document the necessity of the expense under the contract.
(a) The following patent costs are allowable to the extent that they are incurred as requirements of a Government contract (but see 31.205-33):
(1) Costs of preparing invention disclosures, reports, and other documents.
(2) Costs for searching the art to the extent necessary to make the invention disclosures.
(3) Other costs in connection with the filing and prosecution of a United States patent application where title or royalty-free license is to be conveyed to the Government.
(b) General counseling services relating to patent matters, such as advice on patent laws, regulations, clauses, and employee agreements, are allowable (but see 31.205-33).
(c) Other than those for general counseling services, patent costs not required by the contract are unallowable. (See also 31.205-37.)