[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR27.203-1]



[Page 510]

 

            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]