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

DFARS 252.227-7004 License grant.

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 clause has the contractor grant the Government a broad, irrevocable, nonexclusive, nontransferable, paid-up license under specified patents and patent applications, including foreign counterparts where the contractor can do so without owing royalties to others. It matters because it defines exactly what patent rights the Government receives and confirms no other patent rights are granted or implied.

Applies to: Contractors in patent releases, license agreements, and assignments

What it requires

  • Grant the Government an irrevocable, nonexclusive, nontransferable, paid-up license under the listed patents and applications
  • Include corresponding foreign patents and applications only to the extent the Contractor can grant licenses without incurring an obligation to pay royalties or other compensation to others solely for that grant

Key terms: irrevocable · nonexclusive · nontransferable · paid up license · foreign patents

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

The text

As prescribed at 227.7009-3(a), insert the following clause in patent releases, license agreements, and assignments:

License Grant (AUG 1984)

(a) The Contractor hereby grants to the Government an irrevocable, nonexclusive, nontransferable, and paid up license under the following patents, applications for patent, and any patents granted on such applications, and under any patents which may issue as the result of any reissue, division or continuation thereof, to practice by or cause to be practiced for the Government throughout the world, any and all of the inventions thereunder, in the manufacture and use of any article or material, in the use of any method or process, and in the disposition of any article or material in accordance with law:

together with corresponding foreign patents and foreign applications for patents, insofar as the Contractor has the right to grant licenses thereunder without incurring an obligation to pay royalties or other compensation to others solely on account of such grant.

(b) No rights are granted or implied by the agreement under any other patents other than as provided above or by operation of law.

(c) Nothing contained herein shall limit any rights which the Government may have obtained by virtue of prior contracts or by operation of law or otherwise.

(End of clause)

Sections it refers to

  • 227.7009-3 Additional clauses—contracts except running royalty contracts.

Sections that refer to it

  • 227.7009-3 Additional clauses—contracts except running royalty contracts.
  • 227.7011 Procurement of rights in inventions, patents, and copyrights.
  • 252.227-7012 Patent License and Release Contract.

← 252.227-7003 Termination. · 252.227-7005 License term. →

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 252.227-7004 License grant · SpendQuery