[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR27.204-3]

[Page 494]
 
            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.

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