Code of Federal Regulations (Last Updated: July 5, 2024) |
Title 48 - Federal Acquisition Regulations System |
Chapter 1 - Federal Acquisition Regulation |
SubChapter E - General Contracting Requirements |
Part 27 - Patents, Data, and Copyrights |
Subpart 27.3 - Patent Rights under Government Contracts |
§ 27.306 - Licensing background patent rights to third parties.
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27.306 Licensing background patent rights to third parties.
(a) A contract with a small business concern or nonprofit organization shall not contain a provision allowing the Government to require the licensing to third parties of inventions owned by the contractor that are not subject inventions unless the agency head has approved and signed a written justification in accordance with paragraph (b) of this section. The agency head may not delegate this authority and may exercise the authority only if it is determined that the -
(1) Use of the invention by others is necessary for the practice of a subject invention or for the use of a work object of the contract; and
(2) Action is necessary to achieve the practical application of the subject invention or work object.
(b) Any determination will be on the record after an opportunity for a hearing, and the agency shall notify the contractor of the determination by certified or registered mail. The notification shall include a statement that the contractor must bring any action for judicial review of the determination within 60 days after the notification.