Primer on Technical Data and Software Rights - Recommendations
1. Do some thinking about each new product on whether it is in your interests to keep limited rights. Consider, for example, the relative size of the commercial versus government markets, assess competitors strengths with or without access to data and identify where private versus public funding best meets your strategic goals. This will enable management to decide what level of government rights can and should be achieved and in what manner the product should be introduced to the government.
2. You may want to consider different sourcing decisions at the component or subcomponent level. Make sure that when you deliver technical data or computer software to the government, those portions developed at government expense are segregated from those at private expense.
3. Make sure your product managers are knowledgeable about the basics of Government data rights.
4. Review each solicitation and contract to understand what data will be generated and ensure appropriate clauses are included.
5. If you do much software or product development, make sure your accounting system can segregate development costs, identify costs by product and identify funding source (i.e. out of profit, indirect costs, commercial contract, direct government funding). Similar data should be tracked for new versions or releases of the product.
6. Before selling commercial software to the government under a contract, make sure the 1995 regulations are in place. Contracts commonly include older "boilerplate" clauses and new clauses should be substituted.
7. It’s a good idea to keep a file on products that have been or can be sold to the government that identifies sales data, quantities and buyers to ensure the products qualify for commercial item status.
8. Make sure data right clauses are flowed down to subcontractors. Prime contractors will face nightmares if rights they are obligated to provide are greater than rights received by subcontractors. Prime contractors should notify their subcontractors – especially those with limited government contracting experience – that they are mistaken if they believe their standard commercial license will supercede government "Rights in Data" clauses.
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