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. . Federal agency for good cause shown by the Contractor) after the notice to show ~use why the I icense should not be revoked or modified. The Contractor has the right to appeal in accor- dance with appl feable agency licensing regulations <it any) and the Federal Property Management Regulations concerning the licensing of Governmen+-owned inventions, any decision concerning the revocation or modification of Its license. (f) Contractor action to protect the Government's interest. (1) The contractor agrees to execute or to have executed and promptly del iver to the Federal agency al I instruments necessary to (I) establish or confirm the rights the Government has throughout the world in those subject inventions to which the Contractor elects to retain title, a~d (Ii) convey tItle to the Federal &gency when requested under paragraph (d) above, and to enable the Government to obtain ~tent protection throughout the world in that subject Invention. (2) The Contractor agrees to require, by wriTten agreement, its employees, other than clerical and nontechnical employees, to disclose promptly in writing to personnel identified as respon- sible for the administration of patent matters and In a format suggested by the Contractor each subject invention made under contract in order that the Contractor can comply with the disclo- sure provJsfons of paragraph (c) above, and to execute all papers necessary to tfle patent applications on subject inventions and to establish the Government's rights in the subject Inventions. This disclosure format should require, as a mfnimum, the information required by subparagraph (c)(l) above. The Contractor shall instruct such employees through employee agreements or other suitable educational programs on the importance of reporting inventions In sufficient time to permit the fil lng of patent appl ications prior to U.S. or foreign statutory bars. (3) The Contractor shall notify the Federal agency of any decision not to continue the prose- cution of a patent application, pay maintenance fees, or defend in a reexamination or opposi- tion proceeding on a patent, in any country, not less than 30 days before the expiration of the response periOd required by the relevant patent office. (4) The Contractor agrees to include, within the specification of any United St~tBS patent application and ~ny patent issuing Thereon covering a subject Invention, the following state- ment: "This invention was made with Government support under (identify the contract) awarded by (IdenTify The Federal agency). The GovernmenT has certain righTS In this InvenTion." (g) Subcontracts. (1) The ConTraCTor shall Include ThIs clause 152.227-11 of The Federal AcquisiTion RegulaTion (FAR) I, suitably modified to identify the parties, in al I subcontracts, regardless of tier, for experimental, developmental, or research work to be performed by a small business firm or nonprofit organization. The subcontractor shall retain all rights provided for the Contractor In this clause, and the Contractor shal I not, as part of the consideration for awarding the subcontract, obtain rights in the subcontractor's subject Inventions. (2) In The case of subcontracts, at any tier, when the prime award with the Federal agency was e contract (but not a grant or cooperative agreement), the agency, subcontractor, and the Contractor agree that the mutual obligations of the partIes created by this clause constitute a contract between the subcontractor and the Federal agency with respect to those matters covered by This clause. (h) Reportina util tzatlon of subject inventions. The Contractor agrees to submit on request perlod'c reports no more frequently than annually on the utilization of a subject invention or on efforts a~ obtaining such uTilization that are being made by the Contractor or its licensees or assignees. Such reports shel I InclUde information regardIng the status of development, date of first commercial sale or use, gross royalties received by tne Contractor, and such other data and Information as the agency may reasonably specify. The Contractor also agrees to provide addi- tional repor~s as may be requested by the agency in connection with any march-in proceedings undertaken by the agency in accordance with paragraph (j) of this clause. To the extent data or Information supplied under this paragraph is constdered by the ContraCTor, its licensee, or assJgnee to be privileged and confidenTial and is so marked, the agency agrees that, to the eXTent permitted by law, it shal I not disclose such informaT~on to persons outside the GovernmenT. (i) Preference for UniTed States industry. Notwithstanding any other provisfon of this clause, tne Contractor agrees that neltner it nor any assignee will grant to any person the exclusive right to use or sel I any subjeCT invention in the United States unless such person agrees that any products embodying The subject invention wit I be manufactured substantially in the United States. However, in indtvidual cases, the requirement for such an agreement may be waJved by the Federal agency upon a showing ~y the Contractor or its assignee tnet reasonable but unsuccessful efforts have been made to grant licenses on similar terms to potential licen- sees That would be likely to manufacTure substantially In the United States or thaT under the circumSTances domestic manufacture is not commerctel Iy feasible. 1-17