Policy.

(a) Introduction. In accordance with chapter 18 of title 35, U.S.C. (as implemented by 37 CFR part 401), Presidential Memorandum on Government Patent Policy to the Heads of Executive Departments and Agencies dated February 18, 1983, and Executive Order 12591, Facilitating Access to Science and Technology dated April 10, 1987, it is the policy and objective of the Government to— (1) Use the patent system to promote the use of inventions arising from federally supported research or development; (2) Encourage maximum participation of industry in federally supported research and development efforts; (3) Ensure that these inventions are used in a manner to promote free competition and enterprise without unduly encumbering future research and discovery; (4) Promote the commercialization and public availability of the inventions made in the United States by United States industry and labor; (5) Ensure that the Government obtains sufficient rights in federally supported inventions to meet the needs of the Government and protect the public against nonuse or unreasonable use of inventions; and (6) Minimize the costs of administering patent policies. (b) Contractor right to elect title. (1) Generally, pursuant to 35 U.S.C. 202 and the Presidential Memorandum and Executive order cited in paragraph (a) of this section, each contractor may, after required disclosure to the Government, elect to retain title to any subject invention. (2) A contract may require the contractor to assign to the Government title to any subject invention— (i) When the contractor is not located in the United States or does not have a place of business located in the United States or is subject to the control of a foreign government (see 27.303(e)(1)(i)); (ii) In exceptional circumstances, when an agency determines that restriction or elimination of the right to retain title in any subject invention will better promote the policy and objectives of chapter 18 of title 35, U.S.C