Primer on Technical Data and Software Rights - Categories of Rights
Unlimited Rights. These rights, which apply to both technical data and software, are the most extensive rights for the government. It permits the government to use data and software delivered under a contract without any restrictions. Included is the right to distribute the data and software to competitors for reprocurement purposes. The government can disseminate unlimited rights data and software to the public at large for whatever purpose even if there is no connection to the government. With unlimited rights, the government is free to authorize other contractors to commercialize an item or software but this, of course, does not preclude the contractor who developed the item to commercialize it.
Under both FAR 52.227-14 and DFARS 252.227-7013 the government obtains unlimited rights when:
1. Data and software are first produced under performance of the contract
2. Form, fit and function data are delivered under the contract
3. Manuals or instructional materials are delivered under the contract
4. All other data that is not protected under other categories of rights.
DOD has added other conditions such as:
5. When the data and software is developed exclusively with government funds
6. Lesser rights have expired
7. In technical data that is necessary for installation, operation, maintenance or training (which excludes detailed manufacturing or process data)
8. Changes or corrections to technical data provided to the contractor from the government
9. All noncommercial computer software documentation required to be delivered under the contract.
Limited Rights. Limited rights apply only to technical data and offers the greatest degree of protection to the contractor. They do no permit the government to authorize a third party to become a competitor of the developer in either the commercial or government marketplace. It permits the government to "use, duplicate or disclose" technical data inside the government provided such material is not disclosed outside government or used by the government to manufacture an item. Because data cannot be divulged to competitors, the developing contractor is said to retain exclusivity in the government marketplace.
Restricted Rights. These rights apply only to noncommercial software or software documentation and are analogous to limited rights in technical data. Restricted rights permit the government to use the software on only one computer at a time, to transfer the program to another computer, to make archival copies and permit other contractors to use the software only during emergency repairs provided a non-disclosure statement is signed. Contractors as well as subcontractors and vendors may not be required to provide the government with additional rights though the contractor may negotiate with the CO any additional license rights.
Government Purpose Rights (GPR). These rights, applicable to mixed-funded situations, allows the government to use technical data and software for government purposes only including competition but excludes commercial use. GPR allows the government to disclose the data to other contractors for purposes of competition. The developer retains the exclusive benefit of the data or software in the commercial marketplace. GPRs are effective for 5 years following award of a contract (unless negotiated otherwise) after which the government enjoys unlimited rights.
Specifically Negotiated License Rights. These are negotiated rights and can include rights not identified above. COs are encouraged to obtain these but are not allowed to accept anything less than limited or restricted rights. These are common when the government seeks broader rights and the contractor should seek compensation for relinquishing additional rights.
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