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CONTENTS I. Introduction, 3 A. Purpose of Digest, 3 B. Statutory Scheme, 3 C. Overview of This Digest, 8 II. Patent Issues with Federal Contracts, 8 A. Contractor Rights to Inventions Made on Federal Contracts, 8 B. Rights Retained by Federal Government, 10 C. Patent Rights Under Alternative Contracting Vehicles, 11 D. Use of Patented Inventions in the Performance of Federal Contracts, 12 III. State and Local Contracts with Federal Funding, 14 A. Patentability of Inventions by Contractors on Federally Funded Contracts, 14 B. Rights Retained by Federal, State, and Local Governments, 16 C. Use of Patented Inventions on Federally Funded Contracts, 19 IV. Other Patentability Issues with State and Local Contracts, 21 A. Rights Retained by State and Local Governments to Contractor Inventions, 21 B. Patentability of Inventions by Contractors on State and Local Contracts, 22 C. Patentability of Inventions by State Transportation Agency Employees, 23 V. Patent Infringement on State and Local Contracts, 24 A. Use of Patented Inventions in the Performance of State and Local Contracts, 24 B. Defenses to Infringement in the Performance of State and Local Contracts, 27 VI. Conclusions, 31