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FAR and DFARS › DFARS Part 252: Solicitation Provisions and Contract Clauses › Subpart 252.2

DFARS 252.227-7003 Termination.

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 DFARS clause gives the Government the right to end a patent license, in whole or in part, by giving the Contractor at least 30 days written notice of the effective termination date. Even after termination, the Government must still pay royalties that accrued before that effective date. It matters because it limits how long a contractor can count on the license continuing, while protecting royalties already earned.

Applies to: Patent releases, license agreements, and assignments containing this clause

What it requires

  • Government must give the Contractor not less than thirty (30) days written notice of the effective termination date
  • Government must pay royalties that accrued prior to the effective date of termination

Key terms: termination · license · royalties · accrued · notice in writing

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

The text

As prescribed at 227.7009-2(c), insert the following clause in patent releases, license agreements, and assignments:

Termination (AUG 1984)

Notwithstanding any other provision of this contract, the Government shall have the right to terminate the within license, in whole or in part, by giving the Contractor not less than thirty (30) days notice in writing of the date such termination is to be effective; provided, however, that such termination shall not affect the obligation of the Government to pay royalties which have accrued prior to the effective date of such termination.

(End of clause)

Sections it refers to

Sections that refer to it

← 252.227-7002 Readjustment of payments. · 252.227-7004 License grant. →

Rule changes for DFARS Part 252

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

DFARS 252.227-7003 Termination · SpendQuery