---
kind: "section"
citation: "48 C.F.R. § 27.306"
title: "48"
number: "27.306"
heading: "Licensing background patent rights to third parties."
url: "https://uscodex.org/cfr/48/27.306"
---

# §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)](#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.

## 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.