What are the government’s rights in inventions made by nonprofit organizations and small businesses?

What are the government’s rights in inventions made by nonprofit organizations and small businesses?

The government’s rights in inventions made by nonprofit organizations and small businesses under federally sponsored research are specifically addressed in MPEP 310. According to the manual:

“A funding agreement may provide that the government shall have the right to require periodic reporting on the utilization or efforts at obtaining utilization that are being made by the contractor or his licensees or assignees.”

Additionally, the government retains:

• A nonexclusive, nontransferable, irrevocable, paid-up license to practice or have practiced the invention for or on behalf of the United States throughout the world.
• The right to require the contractor to grant licenses to responsible applicants under certain conditions (march-in rights).
• The right to require written agreements from contractors to ensure that inventions are made available for public use on reasonable terms.

These provisions, outlined in 35 U.S.C. 202, balance the interests of small entities, the government, and the public in federally funded inventions.

For more information on federally sponsored research, visit: federally sponsored research.