Federal regulations require that non-profit organizations and small businesses performing research or development under a contract or grant award from the U.S. Government (hereinafter termed "awardees") report "subject inventions" that are conceived or first actually reduced to practice during the performance of the award as well as novel varieties of plants with a date of determination during the period of award to their research sponsor(s). The invention report must be filed within two months of the date that the inventor reports it to the awardee. All requirements related to invention reporting and patent rights flow down to subcontractors, regardless of tier. The following sections of 37 CFR 401 explain this requirement:
37 CFR 401.2 - Definitions 37 CFR 401.14 - Standard Patent Rights Clauses "Invention Disclosure" 37 CFR 401.14 - Standard Patent Rights Clauses "Contractor Action" 37 CFR 401.14 - Standard Patent Rights Clauses "Subcontracts"