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252.227-7003 Termination.

Prescription and Applicability

DFARS Prescription, 227.7009-2(c)

(c) Termination. The clause at 252.227-7003, Termination, is an example for use in contracts providing for the payment of a running royalty. This clause may be modified or omitted as appropriate for particular circumstances, but only upon the advice of cognizant patent or legal counsel (see 227.7004(c)).

Current Text

252.227-7003 Termination.

As prescribed at 227.7009-2(c), insert the following clause in patent releases, license agreements, and assignments:

Termination (AUG 1984)

Notwithstanding any other provision of this contract, the Government shall have the right to terminate the within license, in whole or in part, by giving the Contractor not less than thirty (30) days notice in writing of the date such termination is to be effective; provided, however, that such termination shall not affect the obligation of the Government to pay royalties which have accrued prior to the effective date of such termination.

(End of clause)

Active Class Deviations Affecting This Clause

Class Deviation 2026-O0036, DFARS RFO Implementation (Part 27)

  • Status: Active
  • Date Issued: 2026-02-01
  • Change type: MODIFIED
  • Action: Modified by RFO class deviation

Suggested Questions

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  • Should I include this provision in my solicitation?
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  • Which alternate should I use for a multiple-award contract?
  • Are there any active Class Deviations that modify this clause?
  • What changed in the most recent amendment?