[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: 48CFR27.204-1]

[Page 493-494]
 
            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.  27.204-1  General.

    (a)(1) To determine whether royalties anticipated or actually paid 
under Government contracts are excessive, improper, or inconsistent with 
any Government rights in particular inventions, patents, or patent 
applications, contracting officers shall require prospective contractors 
to furnish certain royalty information and shall require contractors to 
furnish certain royalty reports. Contracting officers shall take

[[Page 494]]

appropriate action to reduce or eliminate excessive or improper 
royalties.
    (2) Royalty information shall not be required (except for 
information under 27.204-3) in sealed bid contracts unless the need for 
such information is approved at a level above that of the contracting 
officer as being necessary for proper protection of the Government's 
interests.
    (b) Any solicitations that may result in a negotiated contract for 
which royalty information is desired or for which cost or pricing data 
is obtained (see 15.403) should contain a provision requesting 
information relating to any proposed charge for royalties. If the 
response to a solicitation includes a charge for royalties, the 
contracting officer shall, before award of the contract, forward the 
information relating to the proposed payments of royalties to the office 
having cognizance of patent matters for the contracting activity 
concerned. The cognizant office shall promptly advise the contracting 
officer of appropriate action. Before award, the contracting officer 
shall take action to protect the Government's interest with respect to 
such royalties, giving due regard to all pertinent factors relating to 
the proposed contract and the advice of the cognizant office.
    (c) The contracting officer, when considering the approval of a 
subcontract, shall require and obtain the same royalty information and 
take the same action with respect to such subcontracts in relation to 
royalties as required for prime contracts under paragraph (b) of this 
subsection. However, consent need not be withheld pending receipt of 
advice in regard to such royalties from the office having cognizance of 
patent matters.
    (d) The contracting officer shall forward the royalty information 
and/or royalty reports received to the office having cognizance of 
patent matters for the contracting activity concerned for advice as to 
appropriate action.

[49 FR 12974, Mar. 30, 1984, as amended at 52 FR 19803, May 27, 1987; 56 
FR 15152, Apr. 15, 1991; 62 FR 51271, Sept. 30, 1997]