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DoD’s new IP rules may impact contractors

February 5, 2021 By Nancy Cleveland

Defense contractors may soon face changes to their rights in computer software and technical data.

The U.S. Department of Defense (DoD) has proposed revisions to the Defense Federal Acquisition Regulation Supplement (DFARS) designed to shift intellectual property rights terms from the current standard to terms that are more individualized by contract – resulting in ownership and license rights that are more favorable to the government and less favorable to contractors.  Among other changes, the new rules will require contractors to assign a monetary value to their technical data and computer software in proposals.  The new rules also will encourage the government to negotiate for special license rights.

These proposed revisions, DFARS Case 2018-D071 and Case 2018-D018 (collectively referred to as the DFARS Cases) will revise the DFARS to comply with sections of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2018.  In their current form, however, the revisions address a wide range of changes that extend beyond the requirements of NDAA FY 2018.  Contractors should begin to plan now for the implementation of the new rules.

Continue reading at:  Holland & Knight

Filed Under: Contracting News Tagged With: intellectual property, software, technical data

What GAO said and did not say about soliciting data rights in recent protest ruling

June 14, 2018 By Nancy Cleveland

The Government Accountability Office (GAO) issued a decision on May 22, denying in part and dismissing in part Sikorsky Aircraft Corporation’s much-watched protest of the Air Force’s solicitation to replace the UH-1N helicopter.  The decison deals an early (if light) blow to contractors in their fight against the Air Force’s recent data rights grab.

The GAO, in Sikorsky Aircraft Corp., B-416027; B-416027.2, May 22, 2018, ultimately endorsed one provision requiring broad delivery of both technical data and software necessary for operations, maintenance, installation, and training activities (defined in the solicitation as “OMIT Data”), but Sikorsky’s protest did not go down without first getting an important concession from the Air Force. This concession, and the GAO’s discussion of whether OMIT Data includes source code, are the key takeaways from Sikorsky, and we will discuss them in some length here. Before we do, some stage-setting is appropriate, in particular because the clauses at issue are confusing.

For more than 20 years, contractors and government personnel have used “OMIT data” as a familiar shorthand for the data called out in DFARS 252.227-7013(b)(1)(v) as “Necessary for installation, operation, maintenance, or training purposes (other than detailed manufacturing or process data),” and, importantly, in which the Government is entitled to unlimited rights. In this parlance, OMIT data by definition include neither “detailed manufacturing or process data” (DMPD) nor computer software. Unsurprisingly, the Air Force caused some consternation recently when it bucked this convention and began including in its solicitations for major weapons systems a provision defining “OMIT Data” to include all types of computer software and, in some cases, DMPD. (We distinguish this OMIT Data, specially defined by the Air Force, and the colloquial OMIT data.) Sikorsky was the first to file a formal challenge.

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=706316

Filed Under: Contracting News Tagged With: DFARS, DoD, GAO, protest, technical data

DoD’s proposed rule would create additional risk and burdens for contractors handling export-controlled information

November 25, 2016 By Nancy Cleveland

A newly-released Proposed Rule would create a procedure for the Dept. of Defense (DoD) to release unclassified technical data subject to Export Administration Regulations (EAR) and International Traffic in Arms Regulations (ITAR) to “qualified contractors,” which are defined to mean qualified U.S. and Canadian contractors.

The public-comment period ends on December 30, 2016.

The Proposed Rule raises the following critical operational and legal issues for U.S. and Canadian defense contractors seeking to obtain ITAR and EAR technical data from DoD:

  1. the certification requirements related to qualification,
  2. the use of overlapping and confusing terminology throughout the rule regarding the type of information subject to the rule,
  3. the limitations on further dissemination, and
  4. the possibility of disqualification for export violations.

For a brief summary of the process, the contractor certification requirement, the type of information subject to the rule, the disclosure limitations, and the issue of disqualification, click on this link: http://www.mondaq.com/article.asp?articleid=541556

Filed Under: Contracting News Tagged With: DoD, EAR, export-controlled data, ITAR, proposed rule, technical data

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