U.S. GOVERNMENT INTELLECTUAL PROPERTY RIGHTS
37 CFR Part 401 § 401.14
Patent Rights (Small Business Firms and Nonprofit Organizations)
(1) Invention means any invention or discovery which is or may be patentable or otherwise
protectable under Title 35 of the United States Code, or any novel variety of plant which is or may be
protected under the Plant Variety Protection Act (7 U.S.C. 2321 et seq.).
(2) Subject invention means any invention of the contractor conceived or first actually reduced to
practice in the performance of work under this contract, provided that in the case of a variety of
plant, the date of determination (as defined in section 41(d) of the Plant Variety Protection Act, 7
U.S.C. 2401(d)) must also occur during the period of contract performance.
(3) Practical Application means to manufacture in the case of a composition or product, to practice in
the case of a process or method, or to operate in the case of a machine or system; and, in each case,
under such conditions as to establish that the invention is being utilized and that its benefits are, to
the extent permitted by law or government regulations, available to the public on reasonable terms.
(4) Made when used in relation to any invention means the conception or first actual reduction to
practice of such invention.
(5) Small Business Firm means a small business concern as defined at section 2 of Pub. L. 85-536
(15 U.S.C. 632) and implementing regulations of the Administrator of the Small Business
Administration. For the purpose of this clause, the size standards for small business concerns
involved in government procurement and subcontracting at 13 CFR 121.3-8 and 13 CFR 121.3-12,
respectively, will be used.
(6) Nonprofit Organization means a university or other institution of higher education or an
organization of the type described in section 501(c)(3) of the Internal Revenue Code of 1954 (26
U.S.C. 501(c) and exempt from taxation under sec