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DFARS Clause ACTIVE

252.227-7008

Computation of royalties.
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Effective Date
AUG 1984
Active Deviations
1
Versions
2 (since 2018-12-05)
RFO
Removed Under RFO

This clause is marked [Reserved] under the Revolutionary FAR Overhaul (Deviation 2026-O0036). It no longer applies to contracts using the RFO model.

View deviation details
252.227-7008 Computation of royalties.

As prescribed at 227.7009-4(c), insert the following clause in patent releases, license agreements, and assignments:

Computation of Royalties (AUG 1984)

Subject to the conditions hereinafter stated, royalties shall accrue to the Contractor under this agreement on all articles or materials embodying, or manufactured by the use of, any or all inventions claimed under any unexpired United States patent licensed herein, upon acceptance thereof by the Department of ____________, at the rate of ________ percent of the net selling price of such articles or materials (amount) per (name of item) *

whether manufactured by the Government or procured under a fixed price contract, and at the rate of (amount) per (name of item) acquired or manufactured by a Contractor performing under a cost-reimbursement contract. With respect to such articles or materials made by the Department of ____________, "net selling price," as used in this paragraph, means the actual cost of direct labor and materials without allowance for overhead and supervision.

* Use bracketed matter as appropriate.

(End of clause)
RFO
Prescription superseded under the RFO

The prescription shown below is from the codified eCFR. Under the RFO, the prescribing section may have been revised, relocated or reserved. See the deviation memorandum for the current prescription authority.

View deviation: 2026-O0036 →
227.7009-4(c)
(c) Computation of royalties. The clause at 252.227-7008 providing for the computation of royalties, may be of varying scope depending upon the nature of the royalty bearing article, the volume of procurement, and the type of contract pursuant to which the procurement is to be accomplished.
Prescription data sourced from eCFR as of 2026-06-15 02:15 UTC. Cross-references within the prescription are not resolved automatically.

Regulatory Stack

The layers of regulation that govern this clause, from the FAR prescription through agency-specific supplements and any active deviations.

R-DFARS R-DFARS Prescription Per Deviation 2026-O0036 (DFARS Part 227)
2026-O0036: DFARS RFO Implementation (Part 27) — DFARS Part 227

View Deviation 2026-O0036 →

DFARS DFARS Supplement (eCFR) ⚠ May be superseded by RFO 227.7009-4(c)
(c) Computation of royalties. The clause at 252.227-7008 providing for the computation of royalties, may be of varying scope depending upon the nature of the royalty bearing article, the volume of procurement, and the type of contract pursuant to which the procurement is to be accomplished.

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Version History

Version history is sourced from the codified eCFR. Changes published only as class deviations or by the Revolutionary FAR Overhaul do not appear here until they are incorporated into the eCFR. For RFO-driven changes see the RFO Version tab and any active deviations cited above.

No version history available from eCFR.

Active Class Deviations

DFARS RFO Implementation (Part 27) Modified by RFO class deviation
MODIFIED
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