[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: 48CFR27.204-3]



[Page 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. 27.204-3  Patents--notice of Government as a licensee.



    (a) When the Government is obligated to pay a royalty on a patent 

because of a license agreement between the Government and a patent owner 

and the contracting officer knows (or has reason to believe) that the 

licensed patent will be applicable to a prospective contract, the 

Government should furnish information relating to the royalty to 

prospective offerors since it serves the interest of both the Government 

and the offerors. In such situations, the contracting officer should 

include in the solicitation a notice of the license, the number of the 

patent, and the royalty rate recited in the license.

    (b) When the Government is obligated to pay such a royalty, the 

solicitation should also require offerors to furnish information 

indicating whether or not each offeror is a licensee under the patent or 

the patent owner. This information is necessary so that the Government 

may either (1) evaluate an offeror's price by adding an amount equal to 

the royalty, or (2) negotiate a price reduction with an offeror-licensee 

when the offeror is licensed under the same patent at a lower royalty 

rate.

    (c) If the Government is obligated to pay a royalty on a patent 

involved in the prospective contract, the contracting officer shall 

insert in the solicitation, substantially as shown, the provision at 

52.227-7, Patents--Notice of Government Licensee.