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part52.dev Federal Acquisition Clause Monitor
FAR Clause

52.227-3

Patent Indemnity.
View on acquisition.gov · View on eCFR.gov
Effective Date
APR 1984
Active Deviations
Versions
3 (since 2017-01-01)
RFO
RFO Version Available

The Revolutionary FAR Overhaul has published a revised version of this clause. The RFO version supersedes the eCFR text below for contracts using the RFO model; see the RFO deviation for applicability.

View RFO version
52.227-3 Patent Indemnity.

As prescribed in 27.201-2(c)(1), insert the following clause:

Patent Indemnity (APR 1984)

(a) The Contractor shall indemnify the Government and its officers, agents, and employees against liability, including costs, for infringement of any United States patent (except a patent issued upon an application that is now or may hereafter be withheld from issue pursuant to a Secrecy Order under 35 U.S.C. 181) arising out of the manufacture or delivery of supplies, the performance of services, or the construction, alteration, modification, or repair of real property (hereinafter referred to as
construction work
) under this contract, or out of the use or disposal by or for the account of the Government of such supplies or construction work.

(b) This indemnity shall not apply unless the Contractor shall have been informed as soon as practicable by the Government of the suit or action alleging such infringement and shall have been given such opportunity as is afforded by applicable laws, rules, or regulations to participate in its defense. Further, this indemnity shall not apply to (1) an infringement resulting from compliance with specific written instructions of the Contracting Officer directing a change in the supplies to be delivered or in the materials or equipment to be used, or directing a manner of performance of the contract not normally used by the Contractor, (2) an infringement resulting from addition to or change in supplies or components furnished or construction work performed that was made subsequent to delivery or performance, or (3) a claimed infringement that is unreasonably settled without the consent of the Contractor, unless required by final decree of a court of competent jurisdiction.

(End of clause)

Alternate I
(APR 1984). As prescribed in 27.201-2(c)(2), add the following paragraph (c) to the basic clause:

(c) This patent indemnification shall not apply to the following items: ____ [
Contracting Officer list and/or identify the items to be excluded from this indemnity
]

Alternate II
(APR 1984). As prescribed in 27.201-2(c)(2), add the following paragraph (c) to the basic clause:

(c) This patent indemnification shall cover the following items: _____

List or identify the items to be included under this indemnity

Alternate III
(JUN 2020). As prescribed in 27.201-2(c)(3), add the following paragraph to the basic clause:

( ) As to subcontracts at any tier for communication service, this clause shall apply only to individual communication service authorizations over the simplified acquisition threshold, as defined in Federal Acquisition Regulation 2.101 on the date of subcontract award, issued under this contract and covering those communications services and facilities (1) that are or have been sold or offered for sale by the Contractor to the public, (2) that can be provided over commercially available equipment, or (3) that involve relatively minor modifications.

[49 FR 12987, Mar. 30, 1984, as amended at 56 FR 15156, Apr. 15, 1991; 60 FR 34761, July 3, 1995; 72 FR 63065, Nov. 7, 2007; 85 FR 27096, May 6, 2020]
27.201-2(c)
(c)
(1) Insert the clause at 52.227-3, Patent Indemnity, in solicitations and contracts that may result in the delivery of commercial products or the provision of commercial services unless-

(i) part 12 procedures are used;

(ii) The simplified acquisition procedures of part 13 are used;

(iii) Both complete performance and delivery are outside the United States; or

(iv) The contracting officer determines after consultation with legal counsel that omission of the clause would be consistent with commercial practice.

(2) Use the clause with either its Alternate I (identification of excluded items) or II (identification of included items) if-

(i) The contract also requires delivery of items that are not commercial products or the provision of services that are not commercial services; or

(ii) The contracting officer determines after consultation with legal counsel that limitation of applicability of the clause would be consistent with commercial practice.

(3) Use the clause with its Alternate III if the solicitation or contract is for communication services and facilities where performance is by a common carrier, and the services are unregulated and are not priced by a tariff schedule set by a regulatory body.
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.

RFO RFO Version Overhauled clause text
The Revolutionary FAR Overhaul publishes a revised version of this clause. See the RFO Version tab for the controlling authority under the RFO model.

Search on acquisition.gov

FAR FAR Prescription 27.201-2(c)
(c)
(1) Insert the clause at 52.227-3, Patent Indemnity, in solicitations and contracts that may result in the delivery of commercial products or the provision of commercial services unless-

(i) part 12 procedures are used;

(ii) The simplified acquisition procedures of part 13 are used;

(iii) Both complete performance and delivery are outside the United States; or

(iv) The contracting officer determines after consultation with legal counsel that omission of the clause would be consistent with commercial practice.

(2) Use the clause with either its Alternate I (identification of excluded items) or II (identification of included items) if-

(i) The contract also requires delivery of items that are not commercial products or the provision of services that are not commercial services; or

(ii) The contracting officer determines after consultation with legal counsel that limitation of applicability of the clause would be consistent with commercial practice.

(3) Use the clause with its Alternate III if the solicitation or contract is for communication services and facilities where performance is by a common carrier, and the services are unregulated and are not priced by a tariff schedule set by a regulatory body.

View on acquisition.gov · View on eCFR.gov

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 2017-01-01 to 2020-06-05.
JUN 2020 June 5, 2020 CURRENT SUBSTANTIVE
Removed in this version
Added in this version
Unchanged
MAY 2020 (previous)
JUN 2020 (current)
16 added, 3 removed
(c)
(c) This patent indemnification shall cover the following items: _____ List or identify the items to be included under this indemnity Alternate III (JUL 1995). As prescribed in 27.201-2(c)(3), add the following paragraph to the basic clause: () As to subcontracts at any tier for communication service, this clause shall apply only to individual communication service authorizations over the simplified acquisition threshold issued under this contract and covering those communications services and facilities (1) that are or have been sold or offered for sale by the Contractor to the public, (2) that can be provided over commercially available equipment, or (3) that involve relatively minor modifications.
(c)
(c) This patent indemnification shall cover the following items: _____ List or identify the items to be included under this indemnity Alternate III (JUN 2020). As prescribed in 27.201-2(c)(3), add the following paragraph to the basic clause: () As to subcontracts at any tier for communication service, this clause shall apply only to individual communication service authorizations over the simplified acquisition threshold, as defined in Federal Acquisition Regulation 2.101 on the date of subcontract award, issued under this contract and covering those communications services and facilities (1) that are or have been sold or offered for sale by the Contractor to the public, (2) that can be provided over commercially available equipment, or (3) that involve relatively minor modifications.
MAY 2020 May 6, 2020 SUBSTANTIVE
JAN 2017 January 1, 2017 SUBSTANTIVE
Earliest version available from the eCFR

RFO Version

Comparison of the codified eCFR text against the Revolutionary FAR Overhaul revision. Highlights show additions (green) and deletions (red, struck through).

Clause Text

Substantive changes. The RFO version differs materially from the eCFR text.
eCFR (codified)
RFO (implemented)
Unchanged
52.227-3 Patent Indemnity.
eCFR (codified)
RFO (implemented)
2 added, 2 removed
(a)
(a) The Contractor shall indemnify the Government and its officers, agents, and employees against liability, including costs, for infringement of any United States patent (except a patent issued upon an application that is now or may hereafter be withheld from issue pursuant to a Secrecy Order under 35 U.S.C. 181) arising out of the manufacture or delivery of supplies, the performance of services, or the construction, alteration, modification, or repair of real property (hereinafter referred to as construction work) under this contract, or out of the use or disposal by or for the account of the Government of such supplies or construction work.
(a)
(a) The Contractor shall indemnify the Government and its officers, agents, and employees against liability, including costs, for infringement of any United States patent (except a patent issued upon an application that is now or may hereafter be withheld from issue pursuant to a Secrecy Order under 35 U.S.C. 181) arising out of the manufacture or delivery of supplies, the performance of services, or the construction, alteration, modification, or repair of real property (hereinafter referred to as "construction work") under this contract, or out of the use or disposal by or for the account of the Government of such supplies or construction work.
1 added, 100 removed
(b)
(b) This indemnity shall not apply unless the Contractor shall have been informed as soon as practicable by the Government of the suit or action alleging such infringement and shall have been given such opportunity as is afforded by applicable laws, rules, or regulations to participate in its defense. Further, this indemnity shall not apply to (1) an infringement resulting from compliance with specific written instructions of the Contracting Officer directing a change in the supplies to be delivered or in the materials or equipment to be used, or directing a manner of performance of the contract not normally used by the Contractor, (2) an infringement resulting from addition to or change in supplies or components furnished or construction work performed that was made subsequent to delivery or performance, or (3) a claimed infringement that is unreasonably settled without the consent of the Contractor, unless required by final decree of a court of competent jurisdiction.
(b)
(b) This indemnity shall not apply unless the Contractor shall have been informed as soon as practicable by the Government of the suit or action alleging such infringement and shall have been given such opportunity as is afforded by applicable laws, rules, or regulations to participate in its defense. Further, this indemnity shall not apply to—
47 added
(1)
(1)
(1) An infringement resulting from compliance with specific written instructions of the Contracting Officer directing a change in the supplies to be delivered or in the materials or equipment to be used, or directing a manner of performance of the contract not normally used by the Contractor;
27 added
(2)
(2)
(2) An infringement resulting from addition to or change in supplies or components furnished or construction work performed that was made subsequent to delivery or performance; or
25 added
(3)
(3)
(3) A claimed infringement that is unreasonably settled without the consent of the Contractor, unless required by final decree of a court of competent jurisdiction.
2 added, 1 removed
Alternate I (APR 1984). As prescribed in 27.201-2(c)(2), add the following paragraph (c) to the basic clause:
Alternate I (Apr 1984). As prescribed in 27.201-2 (c)(2), add the following paragraph (c) to the basic clause:
14 removed
(c)
(c) This patent indemnification shall not apply to the following items: ____ [Contracting Officer list and/or identify the items to be excluded from this indemnity]
(c)
(c) This patent indemnification shall not apply to the following items:
12 added, 15 removed
Alternate II (APR 1984). As prescribed in 27.201-2(c)(2), add the following paragraph (c) to the basic clause:
__________________________________________________ [Contracting Officer list and/or identify the items to be excluded from this indemnity.]
16 added, 8 removed
(c)
(c) This patent indemnification shall cover the following items: _____
(c)
Alternate II (Apr 1984). As prescribed in 27.201-2 (c)(2), add the following paragraph (c) to the basic clause:
8 added, 10 removed
(c)
List or identify the items to be included under this indemnity
(c)
(c) This patent indemnification shall cover the following items:
10 added, 14 removed
Alternate III (JUN 2020). As prescribed in 27.201-2(c)(3), add the following paragraph to the basic clause:
__________________________________________________ [List or identify the items to be included under this indemnity.]
13 added, 78 removed
() As to subcontracts at any tier for communication service, this clause shall apply only to individual communication service authorizations over the simplified acquisition threshold, as defined in Federal Acquisition Regulation 2.101 on the date of subcontract award, issued under this contract and covering those communications services and facilities (1) that are or have been sold or offered for sale by the Contractor to the public, (2) that can be provided over commercially available equipment, or (3) that involve relatively minor modifications.
Alternate III (Jun 2020). As prescribed in 27.201-2 (c)(3), add the following paragraph to the basic clause:
46 added, 31 removed
[49 FR 12987, Mar. 30, 1984, as amended at 56 FR 15156, Apr. 15, 1991; 60 FR 34761, July 3, 1995; 72 FR 63065, Nov. 7, 2007; 85 FR 27096, May 6, 2020]
As to subcontracts at any tier for communication service, this clause shall apply only to individual communication service authorizations over the simplified acquisition threshold, as defined in Federal Acquisition Regulation 2.101 on the date of subcontract award, issued under this contract and covering those communications services and facilities-
17 added
(1)
(1)
(1) That are or have been sold or offered for sale by the Contractor to the public,
10 added
(2)
(2)
(2) That can be provided over commercially available equipment, or
6 added
(3)
(3)
(3) That involve relatively minor modifications.

Prescription

Substantive changes. The RFO prescription differs materially from the eCFR prescription.
eCFR (codified)
RFO (implemented)
Unchanged
52.227-3 Patent Indemnity.: Prescription
eCFR (codified)
RFO (implemented)
29 added, 24 removed
(c)
(c) (1) Insert the clause at 52.227-3, Patent Indemnity, in solicitations and contracts that may result in the delivery of commercial products or the provision of commercial services unless-
(c)
(d) The Government may require a contractor to reimburse it for liability for patent infringement arising out of a contract for commercial products or commercial services by inserting the clause at 52.227-3, Patent Indemnity.
6 removed
(i)
(i) part 12 procedures are used;
(i)
10 removed
(ii)
(ii) The simplified acquisition procedures of part 13 are used;
(ii)
12 removed
(iii)
(iii) Both complete performance and delivery are outside the United States; or
(iii)
21 removed
(iv)
(iv) The contracting officer determines after consultation with legal counsel that omission of the clause would be consistent with commercial practice.
(iv)
20 removed
(2)
(2) Use the clause with either its Alternate I (identification of excluded items) or II (identification of included items) if-
(2)
24 removed
(i)
(i) The contract also requires delivery of items that are not commercial products or the provision of services that are not commercial services; or
(i)
23 removed
(ii)
(ii) The contracting officer determines after consultation with legal counsel that limitation of applicability of the clause would be consistent with commercial practice.
(ii)
44 removed
(3)
(3) Use the clause with its Alternate III if the solicitation or contract is for communication services and facilities where performance is by a common carrier, and the services are unregulated and are not priced by a tariff schedule set by a regulatory body.
(3)

Source: acquisition.gov RFO Part 52 · Prescribing Part 27

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