Code of Federal Regulations Title 48. Federal Acquisition Regulations System 48.27.202-3 Adjustment of royalties

(a) If at any time the contracting officer believes that any royalties paid, or to be paid, under a contract or subcontract are inconsistent with Government rights, excessive, or otherwise improper, the contracting officer shall promptly report the facts to the office having cognizance of patent matters for the contracting activity concerned.

(b) In coordination with the cognizant office, the contracting officer shall promptly act to protect the Government against payment of royalties—

(c) In appropriate cases, the contracting officer in coordination with the cognizant office shall demand a refund pursuant to any refund of royalties clause in the contract (see 27.202–4) or negotiate for a reduction of royalties.

(d) For guidance in evaluating information furnished pursuant to 27.202–1, see 31.205–37. See also 31.109 regarding advance understandings on particular cost items, including royalties.