Overview
This subpart establishes the regulatory framework for managing intellectual property issues in federal contracting, specifically addressing liability for infringement, the reporting of royalties, and security protocols for sensitive inventions.
Key Rules
- Infringement Liability: Prescribes policies regarding the government’s responsibility and the contractor’s potential indemnification obligations for patent and copyright infringement.
- Royalties: Sets procedures for the disclosure and management of royalty costs charged to government contracts.
- Security for Classified Patents: Mandates specific security requirements for patent applications that contain classified subject matter to prevent unauthorized disclosure.
- Trade Agreements: Outlines the treatment and recognition of patented technology in compliance with international trade agreements.
Practical Implications
- Contractors must understand these rules to determine who bears the financial risk if a third party sues for patent infringement during the performance of a government contract.
- The subpart ensures that the government is notified of royalty payments included in contract prices and protects national security interests related to sensitive technical innovations.