How does the government’s march-in rights affect contractor-owned inventions?

This page is an FAQ based on guidance from the Manual of Patent Examining Procedure. It is provided as guidance, with links to the ground truth sources. This is information only: it is not legal advice.

How does the government’s march-in rights affect contractor-owned inventions?

The government’s march-in rights are a significant aspect of federally sponsored research and development contracts. As outlined in MPEP 310:

“The government has the right to require the contractor to grant a nonexclusive, partially exclusive, or exclusive license in any field of use to a responsible applicant(s) upon terms that are reasonable under the circumstances, if the contractor fails to take effective steps to achieve practical application of the invention.”

March-in rights allow the government to intervene if:

• The contractor fails to commercialize the invention within a reasonable time.
• Action is necessary to alleviate health or safety needs.
• Action is necessary to meet requirements for public use specified by federal regulations.
• The contractor has breached agreements specified in 35 U.S.C. 204 regarding U.S. manufacture.

These rights ensure that inventions resulting from federally funded research benefit the public, even if the contractor fails to do so effectively.

For more information on contractor-owned inventions, visit: contractor-owned inventions.

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