Contractors Must Spill Patent Beans to Feds Again
Published Date: 2/23/2026
Notice
Summary
The government is asking to keep collecting info from contractors about patents and royalties when they work on federal projects. This mainly affects companies with contracts over $350,000, who must report any patent issues or royalty payments. Comments on this plan are open until March 25, 2026, and it helps keep everything fair and clear without adding new costs.
Analyzed Economic Effects
6 provisions identified: 0 benefits, 5 costs, 1 mixed.
Notify Govt About Patent/Copyright Claims
If you are a government contractor, FAR 52.227-2 requires you to notify the Government of any patent or copyright infringement allegations that arise while performing a contract and to provide evidence when the contracting officer requests it. This clause also flows down to subcontracts expected to exceed the simplified acquisition threshold (SAT — currently $350,000).
Report Royalties Over $250
If you are an offeror or contractor who anticipates or pays royalties over $250 for use of patented inventions, FAR 52.227-6 requires you to report details such as licensor name, license date, patent numbers, unit prices, units, and total royalty amount. The contracting officer may also request a copy of the license agreement.
Report Inventions from R&D Contracts
Contractors performing experimental, developmental, or research work must report all inventions made under the contract (FAR 52.227-11 or 52.227-13), disclose the invention, and identify any publication, sale, or public use. The contracting officer may require periodic or final reports and contractors must have written employee agreements and procedures to identify and disclose subject inventions.
Three-Year Data Retention and Delivery Rules
Under FAR 52.227-16, contractors must keep additional data produced or specifically used in contract performance for possible delivery to the Government for a period of three years from final acceptance. The Government will pay the contractor for converting, reproducing, and delivering such data when required.
Estimated Annual Paperwork Burden
The information collection estimates 830 respondents, 14,848 total annual responses, and 55,600 total annual burden hours (54,673 reporting hours + 927 recordkeeping hours). These are the Government's estimates of the paperwork and time burden for complying with FAR part 27 information collections.
Small-Business Comment on Disproportionate Impact
A commenter said the collection disproportionately impacts small businesses, citing time, legal review, marking challenges, and invention system maintenance, and recommended recalibrating burden estimates, harmonizing with DFARS, and adopting electronic tools. The FAR Council acknowledged comments but did not change the burden estimate.
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Key Dates
Department and Agencies
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