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DFARS Clause ACTIVE

252.227-7009

Reporting and payment of royalties.
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Effective Date
SEP 2019
Active Deviations
1
Versions
3 (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
252.227-7009 Reporting and payment of royalties.

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

Reporting and Payment of Royalties (SEP 2019)

(a) The
[insert the Contracting Officer or the name of the designated office, in accordance with agency procedures]
shall, on or before the sixtieth (60th) day next following the end of each yearly*

period ending ____________ during which royalties have accrued under this license, deliver to the Contractor, subject to military security regulations, a report in writing furnishing necessary information relative to royalties which have accrued under this contract.

* The frequency, date, and length of reporting periods should be selected as appropriate to the particular circumstances of the contract.

(b) Royalties which have accrued under this contract during the yearly* period ending ____________ shall be paid to the Contractor (if appropriations therefor are available or become available) within sixty (60) days next following the receipt of a voucher from the Contractor submitted in accordance with the report referred to in (a) of this clause;
Provided,
that the Government shall not be obligated to pay, in respect of any such yearly period, on account of the combined royalties accruing under this contract directly and under any separate licenses granted pursuant to the "License to Other Government Agencies" clause (if any) of this contract, an amount greater than ____________ dollars ($____________), and if such combined royalties exceed the said maximum yearly obligation, each department or agency shall pay a pro rata share of the said maximum yearly obligation as determined by the proportion its accrued royalties bear to the combined total of accrued royalties.

(End of clause)

[50 FR 12272, Mar. 28, 1985, as amended at 84 FR 48504, Sept. 13, 2019]
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Prescription superseded under the RFO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(d)
(d) Reporting and payment of royalties.

(1) The contract should contain a provision specifying the office designated within the specific Department involved to make any necessary reports to the contractor of the extent of use of the licensed subject matter by the entire Department, and such office shall be charged with the responsibility of obtaining from all procuring offices of that Department the information necessary to make the required reports and corresponding vouchers necessary to make the required payments. The clause at 252.227-7009 is a sample for expressing reporting and payment of royalties requirements.
(2) Where more than one Department or Government Agency is licensed and there is a ceiling on the royalties payable in any reporting period, the licensing Departments or Agencies shall coordinate with respect to the pro rata share of royalties to be paid by each.
Prescription data sourced from eCFR as of 2026-06-10 03:16 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(d)
(d) Reporting and payment of royalties.

(1) The contract should contain a provision specifying the office designated within the specific Department involved to make any necessary reports to the contractor of the extent of use of the licensed subject matter by the entire Department, and such office shall be charged with the responsibility of obtaining from all procuring offices of that Department the information necessary to make the required reports and corresponding vouchers necessary to make the required payments. The clause at 252.227-7009 is a sample for expressing reporting and payment of royalties requirements.
(2) Where more than one Department or Government Agency is licensed and there is a ceiling on the royalties payable in any reporting period, the licensing Departments or Agencies shall coordinate with respect to the pro rata share of royalties to be paid by each.

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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.

3 versions tracked from 2018-12-05 to 2022-05-26.
MAY 2022 May 26, 2022 CURRENT SUBSTANTIVE
Removed in this version
Added in this version
Unchanged
SEP 2019 (previous)
MAY 2022 (current)
1 added, 1 removed
(a)
(a) The [insert the Contracting Officer or the name of the designated office, in accordance with agency procedures] shall, on or before the sixtieth (60th) day next following the end of each yearly* period ending ______ during which royalties have accrued under this license, deliver to the Contractor, subject to military security regulations, a report in writing furnishing necessary information relative to royalties which have accrued under this contract. * The frequency, date, and length of reporting periods should be selected as appropriate to the particular circumstances of the contract.
(a)
(a) The [insert the Contracting Officer or the name of the designated office, in accordance with agency procedures] shall, on or before the sixtieth (60th) day next following the end of each yearly* period ending ____________ during which royalties have accrued under this license, deliver to the Contractor, subject to military security regulations, a report in writing furnishing necessary information relative to royalties which have accrued under this contract. * The frequency, date, and length of reporting periods should be selected as appropriate to the particular circumstances of the contract.
3 added, 3 removed
(b)
(b) Royalties which have accrued under this contract during the yearly* period ending ______ shall be paid to the Contractor (if appropriations therefor are available or become available) within sixty (60) days next following the receipt of a voucher from the Contractor submitted in accordance with the report referred to in (a) of this clause; Provided, that the Government shall not be obligated to pay, in respect of any such yearly period, on account of the combined royalties accruing under this contract directly and under any separate licenses granted pursuant to the "License to Other Government Agencies" clause (if any) of this contract, an amount greater than ______ dollars ($______), and if such combined royalties exceed the said maximum yearly obligation, each department or agency shall pay a pro rata share of the said maximum yearly obligation as determined by the proportion its accrued royalties bear to the combined total of accrued royalties. (End of clause)
(b)
(b) Royalties which have accrued under this contract during the yearly* period ending ____________ shall be paid to the Contractor (if appropriations therefor are available or become available) within sixty (60) days next following the receipt of a voucher from the Contractor submitted in accordance with the report referred to in (a) of this clause; Provided, that the Government shall not be obligated to pay, in respect of any such yearly period, on account of the combined royalties accruing under this contract directly and under any separate licenses granted pursuant to the "License to Other Government Agencies" clause (if any) of this contract, an amount greater than ____________ dollars ($____________), and if such combined royalties exceed the said maximum yearly obligation, each department or agency shall pay a pro rata share of the said maximum yearly obligation as determined by the proportion its accrued royalties bear to the combined total of accrued royalties. (End of clause)
SEP 2019 September 13, 2019 SUBSTANTIVE
Removed in this version
Added in this version
Unchanged
DEC 2018 (previous)
SEP 2019 (current)
16 added, 2 removed
(a)
(a) The (procuring office) shall, on or before the sixtieth (60th) day next following the end of each yearly* period ending ______ during which royalties have accrued under this license, deliver to the Contractor, subject to military security regulations, a report in writing furnishing necessary information relative to royalties which have accrued under this contract. * The frequency, date, and length of reporting periods should be selected as appropriate to the particular circumstances of the contract.
(a)
(a) The [insert the Contracting Officer or the name of the designated office, in accordance with agency procedures] shall, on or before the sixtieth (60th) day next following the end of each yearly* period ending ______ during which royalties have accrued under this license, deliver to the Contractor, subject to military security regulations, a report in writing furnishing necessary information relative to royalties which have accrued under this contract. * The frequency, date, and length of reporting periods should be selected as appropriate to the particular circumstances of the contract.
DEC 2018 December 5, 2018
Earliest version available from the eCFR

Active Class Deviations

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

Related Clauses

Referenced by

252.227-7012
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