[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: 48CFR27.205]



[Page 512-513]

 

            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. 27.205  Adjustment of royalties.



    (a) If at any time the contracting officer has reason to believe 

that any



[[Page 513]]



royalties paid, or to be paid, under an existing or prospective contract 

or subcontract are inconsistent with Government rights, excessive, or 

otherwise improper, the facts shall be promptly reported to the office 

having cognizance of patent matters for the contracting activity 

concerned. The cognizant office shall review the royalties thus reported 

and such royalties as are reported under 27.204 and 27.206 and, in 

accordance with agency procedures, shall either recommend appropriate 

action to the contracting officer or, if authorized, shall take 

appropriate action.

    (b) In coordination with the cognizant office, the contracting 

officer shall promptly act to protect the Government against payment of 

royalties on supplies or services--

    (1) With respect to which the Government has a royalty-free license;

    (2) At a rate in excess of the rate at which the Government is 

licensed; or

    (3) When the royalties in whole or in part otherwise constitute an 

improper charge.

    (c) In appropriate cases, the contracting officer in coordination 

with the cognizant office shall obtain a refund pursuant to any refund 

of royalties clause in the contract (see 27.206) or negotiate for a 

reduction of royalties.

    (d) For guidance in evaluating information furnished pursuant to 

27.204 and 27.205(a) above, see 31.205-37 and 31.311-34. See also 31.109 

regarding advance understandings on particular cost items, including 

royalties.