---
kind: "section"
citation: "48 C.F.R. § 27.202-2"
title: "48"
number: "27.202-2"
heading: "Notice of Government as a licensee."
url: "https://uscodex.org/cfr/48/27.202-2"
---

# §27.202-2. Notice of Government as a licensee.

- (a) When the Government is obligated to pay a royalty on a patent because of an existing license agreement and the contracting officer believes that the licensed patent will be applicable to a prospective contract, the Government should furnish the prospective offerors with—
  - (1) Notice of the license;
  - (2) The number of the patent; and
  - (3) **The royalty rate cited in the license.**
- (b) When the Government is obligated to pay such a royalty, the solicitation should also require offerors to furnish information indicating whether or not each offeror is the patent owner or a licensee under the patent. This information is necessary so that the Government may either—
  - (1) Evaluate an offeror's price by adding an amount equal to the royalty; or
  - (2) Negotiate a price reduction with an offeror when the offeror is licensed under the same patent at a lower royalty rate.

## Notes

### Authority

Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.

### Source

Source: 72 FR 63049, Nov. 7, 2007, unless otherwise noted.