[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: 48CFR27.205]

[Page 495]
 
            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.  27.205  Adjustment of royalties.

    (a) If at any time the contracting officer has reason to believe 
that any royalties paid, or to be paid, under an existing or prospective 
contract or subcontract are inconsistent with Government rights, 
excessive, or otherwise improper, the facts shall be promptly reported 
to the office having cognizance of patent matters for the contracting 
activity concerned. The cognizant office shall review the royalties thus 
reported and such royalties as are reported under 27.204 and 27.206 and, 
in accordance with agency procedures, shall either recommend appropriate 
action to the contracting officer or, if authorized, shall take 
appropriate action.
    (b) In coordination with the cognizant office, the contracting 
officer shall promptly act to protect the Government against payment of 
royalties on supplies or services--
    (1) With respect to which the Government has a royalty-free license;
    (2) At a rate in excess of the rate at which the Government is 
licensed; or
    (3) When the royalties in whole or in part otherwise constitute an 
improper charge.
    (c) In appropriate cases, the contracting officer in coordination 
with the cognizant office shall obtain a refund pursuant to any refund 
of royalties clause in the contract (see 27.206) or negotiate for a 
reduction of royalties.
    (d) For guidance in evaluating information furnished pursuant to 
27.204 and 27.205(a) above, see 31.205-37 and 31.311-34. See also 31.109 
regarding advance understandings on particular cost items, including 
royalties.