# 48 C.F.R. § 27.202-3 (2026): Adjustment of royalties

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T48_P27_S27_202_3

## Section

- **Citation:** 48 C.F.R. § 27.202-3 (2026)
- **Heading:** Adjustment of royalties
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 48 CFR: Federal Acquisition Regulations System / Chapter 1 / Part 27 / Subpart 27.2 / § 27.202-3: Adjustment of royalties.

## Text

(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— (1) With respect to which the Government has a royalty-free license; (2) At a rate in excess of the rate at which the Government is licensed; or (3) When the royalties in whole or in part otherwise constitute an improper charge. (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.

## Nearby sections

- [48 C.F.R. § 27.200 (2026) Scope of subpart.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P27_S27_200.md)
- [48 C.F.R. § 27.201-1 (2026) General.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P27_S27_201_1.md)
- [48 C.F.R. § 27.201-2 (2026) Contract clauses.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P27_S27_201_2.md)
- [48 C.F.R. § 27.202-1 (2026) Reporting of royalties.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P27_S27_202_1.md)
- [48 C.F.R. § 27.202-2 (2026) Notice of Government as a licensee.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P27_S27_202_2.md)
- [48 C.F.R. § 27.202-3 (2026) Adjustment of royalties.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P27_S27_202_3.md)
- [48 C.F.R. § 27.202-4 (2026) Refund of royalties.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P27_S27_202_4.md)
- [48 C.F.R. § 27.202-5 (2026) Solicitation provisions and contract clause.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P27_S27_202_5.md)
- [48 C.F.R. § 27.203-1 (2026) General.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P27_S27_203_1.md)
- [48 C.F.R. § 27.203-2 (2026) Contract clause.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P27_S27_203_2.md)
- [48 C.F.R. § 27.204-1 (2026) Use of patented technology under the United States-Mexico-Canada Agreement.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P27_S27_204_1.md)
- [48 C.F.R. § 27.204-2 (2026) Use of patented technology under the General Agreement on Tariffs and Trade (GATT).](https://www.frixlaw.com/law-library/statutes/CFR_T48_P27_S27_204_2.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T48_P27_S27_202_3. Check the current official text before relying on it. Not legal advice.