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                            27.306 Licensing background patent rights to third parties.
        
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FAC Number: 2024-03 Effective Date: 02/23/2024
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Subpart27.027.127.227.327.427.5
Section27.30027.30127.30227.30327.30427.30527.306
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27.306 Licensing background patent rights to third parties.27.306 Licensing background patent rights to third parties.       (a) 						            A contract with a small business concern or nonprofit organization shall not contain a provision allowing the Government to require the licensing to third parties of inventions owned by the contractor that are not subject inventions unless the agency head has approved and signed a written justification in accordance with paragraph (b) of this section. The agency head may not delegate this authority and may exercise the authority only if it is determined that the-                                                         (1) 								                Use of the invention by others is necessary for the practice of a subject invention or for the use of a work object of the contract; and                                                            (2) 								                Action is necessary to achieve the practical application of the subject invention or work object.                                                                             (b) 						            Any determination will be on the record after an opportunity for a hearing, and the agency shall notify the contractor of the determination by certified or registered mail. The notification shall include a statement that the contractor must bring any action for judicial review of the determination within 60 days after the notification.    **Parent topic:**  Subpart 27.3 - Patent Rights under Government Contracts
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