FAR 27.203-2—Contract clause.
Plain-English Summary
FAR 27.203-2 tells contracting officers when they must include the patent-clause at FAR 52.227-10, Filing of Patent Applications-Classified Subject Matter. The section covers two related situations: first, all classified solicitations and contracts; and second, any solicitation or contract where the nature of the work could reasonably lead to a patent application that contains classified subject matter. Its purpose is to protect national security by ensuring contractors handle patent filings involving classified information in a controlled way and do not disclose classified subject matter through the patent process. In practice, this means the clause must be considered early in acquisition planning whenever the work involves classified information or sensitive technology that could later be the subject of a patent application. The rule is simple but important: if the work could produce a patent application with classified content, the Government must insert the clause so the contractor is on notice of the special filing restrictions and procedures.
Key Rules
Insert the patent clause
The contracting officer must include FAR 52.227-10, Filing of Patent Applications-Classified Subject Matter, in the specified solicitations and contracts. This is not optional when the rule applies.
Applies to all classified actions
Every classified solicitation and contract must include the clause, regardless of whether a patent application is currently expected. The presence of classified information alone triggers the requirement.
Applies when classified patent risk exists
The clause must also be used when the nature of the work reasonably might result in a patent application containing classified subject matter. The standard is a reasonable possibility, so the contracting officer must assess the work’s technical and security context.
Focus on patent filings
The clause is intended to govern how patent applications are filed when they may contain classified subject matter. It helps prevent unauthorized disclosure through patent disclosure requirements.
Security-driven requirement
This section exists to protect classified information, so the acquisition team should coordinate with security and technical personnel when deciding whether the clause is needed in a non-classified procurement with sensitive work.
Responsibilities
Contracting Officer
Determine whether the solicitation or contract is classified or whether the work could reasonably lead to a patent application containing classified subject matter, and insert FAR 52.227-10 whenever the rule applies.
Agency/Acquisition Team
Identify classified work and technical areas that may generate patentable inventions with classified content, and support the contracting officer’s clause decision during acquisition planning.
Contractor
Comply with the inserted clause if awarded the contract, and follow the special requirements for filing patent applications that may involve classified subject matter.
Security Officials/Program Personnel
Advise on whether the work is classified or likely to produce classified subject matter in a patent application, helping ensure the correct clause is included.
Practical Implications
This clause should be reviewed early, not after award, because it affects how inventions and patent filings are handled from the start of performance.
A common pitfall is assuming the clause is needed only when the contract itself is labeled classified; it also applies when the work could reasonably lead to a classified patent application.
Contracting officers should coordinate with security and technical experts when the classification status of potential inventions is unclear.
Contractors should treat the clause as a special filing restriction and not assume ordinary patent disclosure procedures apply.
Failure to include the clause when required can create security and compliance problems if a classified invention later becomes the subject of a patent application.
Official Regulatory Text
Insert the clause at 52.227-10 , Filing of Patent Applications-Classified Subject Matter, in all classified solicitations and contracts and in all solicitations and contracts where the nature of the work reasonably might result in a patent application containing classified subject matter.