[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR27.203-1]

[Page 492]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 27_PATENTS, DATA, AND COPYRIGHTS--Table of Contents
 
                          Subpart 27.2_Patents
 
Sec.  27.203-1  General.

    (a) To the extent set forth in this section, the Government requires 
reimbursement for liability for patent infringement arising out of or 
resulting from performing construction contracts or contracts for 
supplies or services that normally are or have been sold or offered for 
sale by any supplier to the public in the commercial open market or that 
are the same as such supplies or services with relatively minor 
modifications. Appropriate clauses for indemnification of the Government 
are prescribed in the following subsections.
    (b) A patent indemnity clause shall not be used in the following 
situations:
    (1) When the clause at 52.227-1, Authorization and Consent, with its 
Alternate I, is included in the contract, except that in contracts 
calling also for supplies of the kind described in paragraph (a) above, 
a patent indemnity clause may be used solely with respect to such 
supplies.
    (2) When the contract is for supplies or services (or such items 
with relatively minor modifications) that clearly are not or have not 
been sold or offered for sale by any supplier to the public in the 
commercial open market. However, a patent indemnity clause may be 
included in (i) sealed bid contracts to obtain an indemnity regarding 
specific components, spare parts, or services so sold or offered for 
sale (see 27.203-2(b) below), and (ii) contracts to be awarded (either 
by sealed bid or negotiation) if a patent owner contends that the 
acquisition would result in patent infringement and the prospective 
contractor, after responding to a solicitation that did not contain an 
indemnity clause, is willing to indemnify the Government against such 
infringement either (A) without increase in price on the basis that the 
patent is invalid or not infringed, or (B) for other good reasons.
    (3) When both performance and delivery are to be outside the United 
States, its possessions, and Puerto Rico, unless the contract indicates 
that the supplies or other deliverables are ultimately to be shipped 
into one of those areas.
    (4) When the contract is awarded using simplified acquisition 
procedures.
    (5) When the contract is solely for architect-engineer work (see 
part 36).

[49 FR 12974, Mar. 30, 1984, as amended at 50 FR 1743, Jan. 11, 1985; 50 
FR 52429, Dec. 23, 1985; 60 FR 34759, July 3, 1995]