FAR and DFARS › FAR Part 27: Patents, Data, and Copyrights › Subpart 27.2
FAR 27.202-1 Reporting of royalties.
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 explains how royalties paid under Government contracts are reviewed to make sure they are not excessive, improper, or inconsistent with Government patent rights. It requires contractors to provide royalty information when a solicitation asks for it, and tells contracting officers to send that information to the office that handles patent matters.
Applies to: Prospective contractors and contractors with royalty charges under Government contracts
What it requires
- Furnish royalty information when required by the solicitation provision at 52.227-6
- Provide royalty information for a subcontract when it is required under the prime contract
Key terms: royalties · solicitation provision at 52.227-6 · contracting officer · office having cognizance of patent matters · royalty reports
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(a) To determine whether royalties anticipated or actually paid under Government contracts are excessive, improper, or inconsistent with Government patent rights the solicitation provision at 52.227-6 requires prospective contractors to furnish royalty information. The contracting officer shall take appropriate action to reduce or eliminate excessive or improper royalties.
(b) If the response to a solicitation includes a charge for royalties, the contracting officer shall, before award of the contract, forward the information to the office having cognizance of patent matters for the contracting activity. The cognizant office shall promptly advise the contracting officer of appropriate action.
(c) The contracting officer, when considering the approval of a subcontract, shall require royalty information if it is required under the prime contract. The contracting officer shall forward the information to the office having cognizance of patent matters. However, the contracting officer need not delay consent while awaiting advice from the cognizant office.
(d) The contracting officer shall forward any royalty reports to the office having cognizance of patent matters for the contracting activity.
Sections it refers to
- 52.227-6 Royalty Information.
Sections that refer to it
- 27.202-3 Adjustment of royalties.
← 27.202 Royalties. · 27.202-2 Notice of Government as a licensee. →
Rule changes for FAR Part 27
- Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 9, 27, and 47 ↗ · proposed 2026-09-18 · comments due 2026-10-19
- Federal Acquisition Regulation: Small Business Innovation Research and Technology Transfer Programs ↗ · proposed 2025-06-12
- Federal Acquisition Regulation: Controlled Unclassified Information ↗ · proposed 2025-01-15 · comments due 2025-03-17
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.