The unauthorized use of patents by the federal government is generally connected with procurement. The government purchases goods and services from federal contractors and the government wants the best products and services without delay; therefore, "the government will not refuse to award a contract on the grounds that the prospective contractor may infringe a patent," as per 48 C.F.R. 27.102(b).
Whenever an invention covered by a patent is used or manufactured by or for the United States without a license, the owner's remedy is to file an action against the United States in the U.S. Court of Federal Claims for the recovery of his or her reasonable and entire compensation. The federal contractor is immune from suit and the patentee cannot obtain injunction against a government contractor for infringement. The contractor is not even named as a party to the litigation; however, the government does give notice to the contractor and the contractor may choose to file a petition to join in the litigation when the government procurement contract contains an indemnification clause. The immunity of a government contractor does not extend to private sales.
