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FAR and DFARS › DFARS Part 227: Patents, Data, and Copyrights › Subpart 227.6

DFARS 227.673 Foreign license and technical assistance agreements between the Government and domestic concerns.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section governs contracts between the Government and a primary source that provide technical assistance or patent rights to a second source for manufacturing supplies or performing services. It requires such contracts to specify the rights in patents and data to be supplied to the second source and to include certain restrictions on charges to the second source. It also lists factors to consider when negotiating the price paid to the primary source.

Applies to: Contracts between the Government and a primary source to provide technical assistance or patent rights to a second source

What it requires

  • Specify, to the extent practicable, the rights in patents and data and any other rights to be supplied to the second source.
  • Include a provision that the primary source and its subcontractors shall not charge the second source for royalties or amortization for patents or inventions in which the Government holds a royalty-free license, or for data the Government has the right to possess, use, and disclose, or for technical
  • Ensure any separate agreement between the primary and second source includes a statement referring to the Government contract and conforms to the International Traffic in Arms Regulations.

Key terms: primary source · second source · technical assistance · patent rights · royalty-free license

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) Contracts between the Government and a primary source to provide technical assistance or patent rights to a second source for the manufacture of supplies or performance of services shall, to the extent practicable, specify the rights in patents and data and any other rights to be supplied to the second source. Each contract shall provide, in connection with any separate agreement between the primary source and the second source for patent rights or technical assistance relating to the articles or services involved in the contract, that—

(1) The primary source and his subcontractors shall not make, on account of any purchases by the Government or by others with funds derived through the Military Assistance Program or otherwise through the Government, any charge to the second source for royalties or amortization for patents or inventions in which the Government holds a royalty-free license; or data which the Government has the right to possess, use, and disclose to others; or any technical assistance provided to the second source for which the Government has paid under a contract between the Government and the primary source; and

(2) The separate agreement between the primary and second source shall include a statement referring to the contract between the Government and the primary source, and shall conform to the requirements of the International Traffic in Arms Regulations (see 227.675-1).

(b) The following factors, among others, shall be considered in negotiating the price to be paid the primary source under contracts within (a) of this section:

(1) The actual cost of providing data, personnel, manufacturing aids, samples, spare parts, and the like;

(2) The extent to which the Government has contributed to the development of the supplies or services, and to the methods of manufacture or performance, through past contracts for research and development or for manufacture of the supplies or performance of the services; and

(3) The Government's patent rights and rights in data relating to the supplies or services and to the methods of manufacture or of performance.

Sections it refers to

  • 227.675-1 International Traffic in Arms Regulations.

← 227.672 Policy. · 227.674 Supply contracts between the Government and a foreign government or concern. →

Rule changes for DFARS Part 227

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

DFARS 227.673 Foreign license and technical assistance agreements between the Government and domestic concerns · SpendQuery