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liable to the Grantor for any funds the Grantor determines that City of Santa Ana used in violation of these Grant Assurances. City of Santa Ana shall indemnify and hold harmless the City for any sums the Grantor determines City of Santa Ana used in violation of the Grant Assurances. ~416. Federal. State and Local Taxes Federal, State and local taxes shall be the responsibility of City of Santa Ana as an independent party and not as a City employee. ~417. Inventions. Patents and Coovriqhts A. Reoortinq Procedure for Inventions If any project produces any invention or discovery (Invention) patentable or otherwise under title 35 of the U.S. Code, including, without limitation, processes and business methods made in the course of work under this Agreement, the Contractor shall report the fact and disclose the Invention promptly and fully to the City. The City shall report the fact and disclose the Invention to the Grantor. Unless there is a prior agreement between the City and the Grantor, the Grantor shall determine whether to seek protection on the Invention. The Grantor shall determine how the rights in the Invention, including rights under any patent issued thereon, will be allocated and administered in order to protect the public interest consistent with the policy ("Policy") embodied in the Federal Acquisition Regulations System, which is based on Ch. 18 of title 35 U.S.C. Sections 200 et seq. (Pub. L. 95-517, Pub. L. 98-620, 37 CFR part 401); Presidential Memorandum on Government Patent Policy to the Heads of the Executive Departments and Agencies, dated 2/18/1983); and Executive Order 12591, 4/10/87,52 FR 13414, 3 CFR, 1987 Comp., p. 220 (as amended by Executive Order 12618,12/22/87,52 FR 48661,3 CFR, 1987 Comp., p. 262). Contractor hereby agrees to be bound by the Policy, and will contractually require its personnel to be bound by the Policy. B. Riqhts to Use Inventions City shall have an unencumbered right, and a non-exclusive, irrevocable, royalty- free license, to use, manufacture, improve upon, and allow others to do so for all government purposes, any Invention developed under this Agreement. C. Coovriqht Policv 1. Unless otherwise provided by the terms of the Grantor or of this Agreement, when copyrightable material (Material) is developed under this Agreement, the author or the City, at the City's discretion, may copyright the Material. If the City declines to copyright the Material, the City shall have an unencumbered right, and a non-exclusive, irrevocable, royalty- free license, to use, manufacture, improve upon, and allow others to do so UASI Gov'! PSA Santa Ana 24 5/07