52.227-20
Rights in Data-SBIR Program
FAR 52.227-20 ensures SBIR contractors can protect proprietary data for a limited period while granting the Government necessary rights for contract performance—proper marking and compliance are essential to maintain these protections.
Overview
FAR 52.227-20, Rights in Data-SBIR Program, governs the allocation of rights in data and computer software produced under Small Business Innovation Research (SBIR) contracts. It defines key terms, establishes the Government’s rights to use, disclose, and reproduce data, and outlines the contractor’s ability to assert copyright and protect proprietary SBIR data. The clause provides a framework for marking, withholding, and licensing data, and sets forth procedures for handling omitted or incorrect data markings. It also addresses the contractor’s obligations regarding subcontractor data rights and clarifies the relationship between data rights and patent rights.
Key Rules
- Definitions and Scope
- Clearly defines terms such as SBIR data, limited rights data, restricted computer software, and unlimited rights, which are critical for determining rights and obligations.
- Allocation of Rights
- The Government generally receives unlimited rights in most delivered data, except for SBIR data, limited rights data, and restricted computer software, which are subject to specific protections.
- Copyright and Marking
- Contractors may assert copyright in data first produced under the contract and must properly mark SBIR data and copyrighted materials to protect their rights.
- SBIR Data Protection
- SBIR data is protected for four years from acceptance, during which the Government may use it only for Government purposes and cannot disclose it outside the Government without permission.
- Withholding and Substitution
- Contractors may withhold limited rights data and restricted computer software, provided they identify what is withheld and supply form, fit, and function data instead.
- Subcontractor Data Rights
- Contractors must secure necessary data rights from subcontractors and notify the Contracting Officer if a subcontractor refuses to comply.
Responsibilities
- Contracting Officers: Ensure proper inclusion of the clause, review data markings, and authorize exceptions or corrections as needed.
- Contractors: Mark SBIR data and copyrighted materials, withhold and identify limited rights data as appropriate, obtain necessary rights from subcontractors, and comply with marking and notification requirements.
- Agencies: Oversee compliance, enforce data rights, and ensure proper handling of SBIR data and related notices.
Practical Implications
- This clause protects small business innovations while allowing the Government to use data for its purposes. Contractors must be diligent in marking and identifying data to avoid losing proprietary protections. Failure to comply with marking or notification requirements can result in loss of rights or disclosure of proprietary information. Subcontracting requires careful management of data rights to ensure compliance throughout the supply chain.