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DFARS 252.227-7006 License Grant---Running Royalty. Basic (Aug 1984)

As prescribed at 227.7009-4(a), insert the following clause in patent releases, license agreements, and assignments: The clauses set forth below are examples which may be used in patent release and settlement agreements, and license agreements, when it is desired to cover the subject matter thereof and the contract provides for payment of a running royalty. (a) License grant--running royalty. No Department shall be obligated to pay royalties unless the contract is signed on behalf of such Department. Accordingly, the License Grant clause at 252.227-7006 should be limited to the practice of the invention by or for the signatory Department or Departments.


      (a)  The Contractor hereby grants to the Government, as represented by the Secretary of ______________, an irrevocable, nonexclusive, nontransferable license under the following patents, applications for patent, and any patents granted on such applications, and under any patents which may issue as the result of any reissue, division, or continuation thereunder to practice by or cause to be practiced for the Department of ______________, throughout the world, any and all of the inventions thereunder in the manufacture and use of any article or material, in the use of any method or process, and in the disposition of any article or material in accordance with law:

U.S. Patent No. ___________________

Date _____________________



Application Serial No. _____________

Filing Date _______________

together with corresponding foreign patents and foreign applications for patent, insofar as the Contractor has the right to grant licenses thereunder without incurring an obligation to pay royalties or other compensation to others solely on account of such grant.

      (b)  No rights are granted or implied by the agreement under any other patents other than as provided above or by operation of law.

      (c)  Nothing contained herein shall limit any rights which the Government may have obtained by virtue of prior contracts or by operation of law or otherwise.

(End of clause)


Subcontractor ✖ (Applies to contracts providing for payment of a running royalty.);


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