[Code of Federal Regulations]
[Title 14, Volume 5]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 14CFR1245.108]

[Page 206-207]
 
                     TITLE 14--AERONAUTICS AND SPACE
 
                   CHAPTER V--NATIONAL AERONAUTICS AND
                          SPACE ADMINISTRATION
 
PART 1245_PATENTS AND OTHER INTELLECTUAL PROPERTY RIGHTS--Table of Contents
 
                   Subpart 1_Patent Waiver Regulations
 
Sec.  1245.108  License to contractor.

    (a) Each contractor reporting an invention is granted a revocable, 
nonexclusive, royalty-free license in each patent application filed in 
any country on the invention and in any resulting

[[Page 207]]

patent in which the Government acquires title. The license extends to 
the contractor's domestic subsidiaries and affiliates, if any, within 
the corporate structure of which the contractor is a party and includes 
the right to grant sublicenses of the same scope to the extent the 
contractor was legally obligated to do so at the time the contract was 
awarded. The license and right is transferable only with the approval of 
the Administrator except when transferred to the successor of that part 
of the contractor's business to which the invention pertains.
    (b) The contractor's domestic license may be revoked or modified by 
the Administrator to the extent necessary to achieve expeditious 
practical application of the invention pursuant to an application for an 
exclusive license submitted in accordance with the Licensing of NASA 
Inventions (14 CFR 1245.2). This license will not be revoked in that 
field of use and/or the geographical areas in which the contractor has 
achieved practical application and continues to make the benefits of the 
invention available to the public on reasonable terms. The license in 
any foreign country may be revoked or modified at the discretion of the 
Administrator to the extent the contractor, its licensees, or its 
domestic subsidiaries or affiliates have failed to achieve practical 
application in that foreign country.
    (c) Before revocation or modification of the license, the contractor 
will be provided a written notice of the Administrator's intention to 
revoke or modify the license, and the contractor will be allowed 30 days 
(or any other time as may be allowed by the Administrator for good cause 
shown by the contractor) after the notice to show cause why the license 
should not be revoked or modified. The contractor shall have the right 
to appeal, under the Licensing of NASA Inventions (14 CFR 1245.2), any 
decision concerning the revocation or modification of its license.