Overview
This section provides the foundational vocabulary for FAR Subpart 27.3, establishing the legal scope for intellectual property rights, specifically concerning patents and plant varieties developed under federal contracts. It defines the specific criteria for when an invention is considered "made" and what qualifies as a "subject invention" subject to government oversight.
Key Rules
- Invention: Encompasses any discovery patentable under Title 35 of the U.S. Code or protectable under the Plant Variety Protection Act.
- Subject Invention: Any invention of the contractor that is "made" specifically during the performance of work under a Government contract.
- Definition of "Made":
- For standard inventions, this is defined as the point of conception or first actual reduction to practice.
- For plant varieties, it is when the variety has been reproduced with recognized characteristics.
- Practical Application: Requires that the invention is not just created, but utilized (manufactured, practiced, or operated) so that its benefits are available to the public on reasonable terms.
- Nonprofit Organization: Specifically includes universities, 501(c)(3) tax-exempt organizations, and qualified state-level nonprofit scientific or educational institutions.
Practical Implications
- The definition of "Subject Invention" is the "trigger" for mandatory reporting; contractors must maintain rigorous records of conception and reduction to practice to determine if the government has a legal claim to the intellectual property.
- Contractors must ensure that "Practical Application" is achieved to avoid the risk of the government exercising "march-in rights" if the invention is not being made available to the public on reasonable terms.