How does the Government License Rights statement affect patent ownership?

The Government License Rights statement, as required by 35 U.S.C. 202(c)(6) and described in MPEP 310, does not transfer ownership of the patent to the government. Instead, it acknowledges that:

“The government has certain rights in the invention.”

These rights typically include:

• A non-exclusive, non-transferable, irrevocable, paid-up license to practice or have practiced the invention for or on behalf of the United States throughout the world
• March-in rights, allowing the government to require the contractor to grant licenses to third parties under certain circumstances
• The right to receive periodic reports on the utilization of the invention

While the contractor retains ownership and the right to commercialize the invention, they must operate within the framework of these government rights.