FAR 27.204—Patented technology under trade agreements.

Use of patented technology under the United States-Mexico-Canada Agreement.

FAR 27.204-1 is a narrow cross-reference provision that tells contracting officers what to do when a procurement raises questions about the use of patented technology in the context of the United States-Mexico-Canada Agreement (USMCA). The section does not create a detailed patent-licensing rule of its own; instead, it directs the contracting officer to consult legal counsel whenever the USMCA and patented technology issues may affect the acquisition. It also flags Article 20.6(a) of the Agreement, which addresses public health and pharmaceuticals, as a specific point of reference. In practice, this section exists to ensure that patent-related procurement decisions are reviewed for treaty compliance, legal risk, and any special treatment that may apply to health-related or pharmaceutical technologies. For contractors and contracting officers, the practical significance is that patent questions under USMCA should not be handled informally or by assumption; they require legal review before the acquisition proceeds or terms are finalized.

Use of patented technology under the General Agreement on Tariffs and Trade (GATT).

FAR 27.204-2 is a short cross-reference provision that explains how federal use of patented technology fits within international trade and intellectual property obligations. It points readers to Article 31 of Annex 1C of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), which is part of the GATT Uruguay Round agreements, and notes that Article 20.40 of the United States-Mexico-Canada Agreement (USMCA) preserves the parties’ rights under Article 31. In practical terms, this section does not itself create a separate procurement procedure or license rule; instead, it reminds agencies and contractors that government use of patented inventions may be permitted in limited circumstances under applicable law, even without the patent owner’s authorization. The section is important because patent rights can affect acquisition planning, contract performance, and the Government’s ability to obtain needed supplies or services when patented technology is involved. It also signals that international trade agreements may shape, but do not eliminate, the Government’s domestic authority to use patented technology under existing legal frameworks. Readers will find here the basic relationship between federal procurement and patent-use exceptions under international agreements, especially where government use without authorization is at issue.