[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: 48CFR27.306]

[Page 512]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 27_PATENTS, DATA, AND COPYRIGHTS--Table of Contents
 
          Subpart 27.3_Patent Rights Under Government Contracts
 
Sec.  27.306  Licensing background patent rights to third parties.

    (a) A contract with a small business firm or nonprofit organization 
will 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 such provision has been approved by 
the agency head and written justification has been signed by the agency 
head. Any such provision will clearly state whether the licensing may be 
required in connection with the practice of a subject invention, a 
specifically identified work object, or both. The agency head may not 
delegate the authority to approve such provisions or to sign 
justifications required for such provisions.
    (b) The Government will not require the licensing of third parties 
under any such provision unless the agency head determines that the 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 that such 
action is necessary to achieve the practical application of the subject 
invention or work object. Any such determination will be on the record 
after an opportunity for a hearing, and the contractor shall be given 
notification of the determination by certified or registered mail. The 
notification shall include a statement that any action commenced for 
judicial review of such determination must be brought by the contractor 
within 60 days after the notification.