Patent Infringement By the Government
Patent infringement by the
Government, of privately owned patents, is governed
by 28 U.S.C. 1498, which provides that a suit
against the Government in the U.S. Court of Federal
Claims is the exclusive remedy for patent holders
who allege their patented invention has been
infringed by the U.S. Government or by one acting
for the Government. The primary purpose of this
statute is to protect and relieve contractors from
any liability for infringement by the owner when an
invention is used by or manufactured for the United
States. By virtue of this statute, the Government
may be held liable to the patent owner for payment
of the "reasonable and entire compensation" for its
unauthorized use of the patent. Unlike a private
party, however, the Government cannot commit the
tort of "patent infringement." Governmental use of a
patented invention is viewed as an eminent domain
taking of a license under the patent and not as a
tort.
The Government may delegate its
eminent domain power over patents to contractors
acting on its behalf. This is accomplished through
inclusion of the "Authorization and Consent" clause
in the contract [FAR clause 52.227-1]. This clause
is usually included in research and development
contracts and is a very significant power to grant
to a contractor as it makes the Government
responsible for the contractors' infringement of any
patents during the course of performance of the
contract; the patent owner must bring her/his action
against the Government, not the contractor.
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