FAR 27.200—Scope of subpart.
Plain-English Summary
FAR 27.200 is a scope provision that tells readers what Subpart 27.2 covers: patent and copyright infringement liability, royalties, security requirements for patent applications that contain classified subject matter, and patented technology under trade agreements. It does not itself create the detailed procedures for each topic; instead, it frames the policy area and signals that the government has separate rules for handling intellectual property risk, payment of royalties, protection of classified inventions, and international trade agreement obligations involving patented technology. In practice, this section matters because contractors and contracting officers need to know when intellectual property issues may affect pricing, contract terms, disclosures, security handling, and compliance with trade agreement commitments. It also helps users locate the right FAR provisions when a contract involves proprietary technology, licensed inventions, or classified research and development. The practical significance is that these issues can affect contract cost, deliverables, technical data rights, security controls, and the government’s exposure to infringement claims.
Key Rules
Subpart covers four topics
This subpart applies to patent and copyright infringement liability, royalties, security requirements for patent applications containing classified subject matter, and patented technology under trade agreements. Readers should treat these as the four subject areas governed by the subpart.
Infringement liability is included
The subpart addresses when the government or a contractor may face liability for infringing patents or copyrights. The scope provision signals that infringement risk is a core subject of the subpart and must be considered in contract performance and acquisition planning.
Royalties are covered
The subpart also covers royalties, meaning payments tied to the use of patented or copyrighted technology may be relevant under FAR policy. Contractors and contracting officers should expect separate rules on when royalties are allowable, disclosed, or otherwise handled in the contract.
Classified patent applications need security
The subpart includes security requirements for patent applications that contain classified subject matter. This means patent-related actions must be coordinated with national security requirements when the invention or application involves classified information.
Trade agreement patent rules apply
The subpart covers patented technology under trade agreements, indicating that international procurement obligations may affect how patented technology is treated. Contracting personnel must consider trade agreement requirements when acquisitions involve patented items or technology.
Responsibilities
Contracting Officer
Identify whether the acquisition involves patent or copyright infringement risk, royalty issues, classified patent subject matter, or trade agreement-related patented technology, and apply the detailed FAR provisions in this subpart and related parts as needed.
Contractor
Recognize when its performance may involve patented or copyrighted material, royalty-bearing technology, or classified inventions, and comply with the contract’s disclosure, licensing, security, and reporting requirements.
Agency
Ensure acquisition policies and internal procedures account for intellectual property risk, royalty handling, security controls for classified patent matters, and compliance with applicable trade agreement obligations.
Security/Classification Officials
Review and control patent applications or related disclosures that contain classified subject matter, and ensure security requirements are met before any filing or external release.
Practical Implications
This section is a roadmap, not the full rule set, so users must go to the detailed FAR provisions it points to for actual requirements.
A common pitfall is overlooking royalty obligations or assuming all technology rights issues are handled the same way; they are not, and the contract may need specific clauses or disclosures.
Another frequent issue is failing to coordinate patent filings with classification rules, which can create serious security and legal problems.
Contracting officers should screen for intellectual property and trade agreement issues early, especially in R&D, software, manufacturing, and defense-related buys.
Contractors should flag patented or licensed technology before award or performance begins, because late disclosure can affect pricing, deliverables, and compliance.
Official Regulatory Text
This subpart prescribes policies and procedures with respect to- (a) Patent and copyright infringement liability; (b) Royalties; (c) Security requirements for patent applications containing classified subject matter; and (d) Patented technology under trade agreements.