Why Part 27 Matters

Intellectual property rights allocation is one of the most consequential aspects of government contracting. Contractors must carefully negotiate data rights to protect their proprietary investments while meeting government needs. The default data rights clauses grant the government broad rights unless contractors properly assert restrictions. Failure to mark deliverables correctly can result in loss of rights protections.

Key Topics in Part 27

FAR Part 27 addresses several critical areas of the federal acquisition process. Understanding these topics is essential for both contracting officers and contractors working within this regulatory framework.

• Patent rights under government contracts (Subpart 27.2)
• Bayh-Dole Act — small business and nonprofit patent rights
• Rights in technical data and computer software (Subpart 27.3)
• Unlimited, limited, and restricted data rights
• Copyright provisions and government license rights (Subpart 27.4)
• Data rights marking requirements
• Invention disclosure obligations
• Pre-existing (background) intellectual property protections

How FAR Part 27 Applies

The Federal Acquisition Regulation is organized into 53 parts, each covering a distinct area of the procurement process. Part 27 (Patents, Data, and Copyrights) is part of this framework and works in conjunction with other FAR parts to create a comprehensive regulatory structure. Contracting officers must comply with all applicable parts when executing procurement actions, and contractors must understand the requirements that flow from these regulations into their contracts.

The requirements in Part 27 may be implemented through specific contract clauses prescribed in FAR Part 52. When a clause references Part 27, the substantive requirements originate here, while Part 52 provides the actual clause language incorporated into contracts and solicitations.

Subparts

FAR Part 27 is divided into 5 subparts, each addressing a specific aspect of patents, data, and copyrights.

• 27.1 — General
• 27.2 — Patents and Copyrights
• 27.3 — Patent Rights under Government Contracts
• 27.4 — Rights in Data and Copyrights
• 27.5 — Foreign License and Technical Assistance Agreements

Reading FAR Part 27

The full text of FAR Part 27 is available on the Electronic Code of Federal Regulations (eCFR). The eCFR provides the most current version of the regulation, including any recent amendments published through Federal Acquisition Circulars (FACs). For historical versions, use the eCFR's point-in-time search feature.

• What does FAR Part 27 cover?

  FAR Part 27 covers patents, data, and copyrights within the federal acquisition process. FAR Part 27 covers patents, data, and copyrights in government contracting. Subpart 27.2 addresses patent rights, including the Bayh-Dole Act provisions for inventions made under funding agreements. Subpart 27.3 prescribes policies for rights in technical data and computer software, including unlimited, limited, and restricted rights. Subpart 27.4 addresses rights in copyrighted works and data.

• Who must comply with FAR Part 27?

  FAR Part 27 applies to all executive branch agencies conducting acquisitions, unless a specific exemption exists. Contractors must comply with the requirements that are incorporated into their contracts through prescribed clauses from FAR Part 52. Agency-specific supplements (DFARS, GSAM, etc.) may add additional requirements beyond the base FAR.

• Where can I read the full text of FAR Part 27?

  The full text is available on the Electronic Code of Federal Regulations (eCFR). You can also access it through acquisition.gov, which is maintained by the General Services Administration. Both sources reflect the most current version of the regulation.

• How does FAR Part 27 relate to contract clauses?

  FAR Part 27 establishes the substantive policies and procedures. The actual clause language that gets incorporated into contracts is found in FAR Part 52. Each clause in Part 52 includes a "prescription" that references the relevant policy part, creating a direct link between the requirement and its implementation in the contract.