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27.306 Licensing background patent rights to third parties.

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) 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.