So, Just When You Thought You Were Getting a Handle on Data Rights, the Department of Defense Issues a Long-Awaited Update to the DFARS Technical Data and Computer Software Clauses

security-600On June 16, 2016, the U.S. Department of Defense issued a proposed rule to implement Section 815 of the National Defense Authorization Act for Fiscal Year 2012. Industry and practitioners alike have awaited this proposal since Congress enacted Section 815 in December 2011, substantially amending 10 U.S.C. § 2320. Under the proposed rule, if technical data or computer software are “segregation or reintegration” data, they may be released to a third party, including a competitor, even if they are limited-rights data or restricted-rights software, subject to constraints: that the recipient may use the data or software only for segregation or reintegration, and that the recipient must later destroy the data or software. The rule also permits the DOD to require delivery, without any time limits, of various technical data and software that either have been generated or merely “utilized” in the performance of a contract.

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