[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: 48CFR27.206-1]

[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.  27.206-1  General.

    When a fixed-price contract is negotiated under circumstances that 
make it questionable whether or not substantial amounts of royalties 
will have to be paid by the contractor or a subcontractor, such 
royalties may be included in the target or contract price, provided the 
contract specifies that the Government will be reimbursed the amount of 
such royalties if they are not paid. Such circumstances might include, 
for example, either a pending Government anti-trust action or 
prospective litigation on the validity of a patent or patents or on the 
enforceability of an agreement (upon which the contractor or 
subcontractor bases the asserted obligation) to pay the royalties to be 
included in the target or contract price.