[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: 48CFR27.204-1]



[Page 511-512]

 

            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 512]]



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]