FAR 27.4—Subpart 27.4

Scope of subpart.

FAR 27.400 is a scope provision that tells readers what Subpart 27.4 covers and, just as importantly, where it applies. It states that the subpart sets forth policies and procedures on rights in data, copyrights, and the acquisition of data, so it is the gateway to the FAR rules governing ownership, use, and protection of technical and other data developed or delivered under federal contracts. It also draws a key applicability line: the policy statement in FAR 27.402 applies to all executive agencies, while the rest of the subpart applies to all executive agencies except the Department of Defense. In practice, this means contracting officers and contractors must first determine whether they are dealing with a DoD or non-DoD executive agency before relying on the detailed rules in the subpart. The section exists to prevent misapplication of data-rights and copyright rules across agencies and to signal that DoD follows a different regulatory framework for most of these matters. For contractors, this is a reminder that data-rights clauses, copyright assertions, and data acquisition terms are not one-size-fits-all and must be reviewed in light of agency coverage.

Definitions.

FAR 27.401 supplies the core definitions used in the patent, data, and computer software rights rules in this subpart. It defines what counts as "data," what "form, fit, and function data" means, and the key rights categories for government use of contractor information: "limited rights," "limited rights data," "restricted computer software," "restricted rights," and "unlimited rights." It also explains the special treatment of computer software versus other technical data, including what is excluded from form, fit, and function data for software. These definitions matter because they determine what the Government may use, disclose, reproduce, or distribute, and what a contractor may protect as proprietary, trade secret, confidential, or privately developed material. In practice, these definitions drive solicitation instructions, proposal markings, contract clauses, data deliverable requirements, and disputes over whether the Government can share or reuse technical information or software. Agencies also have a limited option to adopt an alternate definition of limited rights data, so users must check agency-specific implementation as well as the FAR text.

Policy.

FAR 27.402 states the basic policy for Government rights in contractor data and the protection of contractor proprietary interests. It explains why agencies need access to data in the first place: to promote competition among suppliers, to publish and disseminate the results of agency activities, to ensure that research, development, and demonstration results are used effectively and shared to support future technological progress, to satisfy other statutory and programmatic requirements, and to meet specialized acquisition and logistics support needs. At the same time, it recognizes that contractors may have proprietary interests in data and that those interests must be protected from unauthorized use and disclosure. The section’s practical purpose is to require agencies to strike a balance between mission needs for data and the contractor’s legitimate business interests. In day-to-day contracting, this policy drives how data rights are addressed in solicitations, contracts, and post-award administration, especially when technical data, software-related data, research results, or logistics information are involved.

Data rights-General.

FAR 27.403 explains the basic rule for data rights in federal contracts: if a contract requires data to be produced, furnished, acquired, or used to perform the work, the contract must include terms that spell out the Government’s and contractor’s respective rights and obligations concerning use, reproduction, and disclosure of that data. The section also draws an important distinction between data rights clauses and delivery requirements: data rights clauses govern what each party may do with the data, but they do not tell the contractor what data must be delivered, how much must be delivered, or the quality of the deliverable. Instead, the contract itself must specifically identify the data to be delivered. In practice, this means contracting officers must draft both the delivery requirements and the data rights provisions with care, and contractors must review both to understand what information must be provided and how the Government may later use it. The section exists to avoid ambiguity, protect proprietary or sensitive information, and ensure the Government receives the data it needs without overreaching beyond the agreed rights. It is a foundational rule that applies across many types of procurements involving technical data, reports, software-related information, or other contract-generated information.

Basic rights in data clause.

FAR 27.404 explains how the government’s standard data-rights clause, FAR 52.227-14, Rights in Data—General, operates and how the related representation provision, FAR 52.227-15, Representation of Limited Rights Data and Restricted Computer Software, is used. In practice, this section tells contracting officers when and how to include the basic rights-in-data clause in solicitations and contracts, what rights the government receives in technical data and computer software, and how contractors must identify data or software they claim as limited rights data or restricted computer software. It also ties the clause and the representation together so the government can evaluate offers with an understanding of what data restrictions may apply. The section matters because data rights affect competition, sustainment, modification, reprocurement, and the government’s ability to use, disclose, reproduce, or deliver technical information and software. For contractors, it is the key place to understand when proprietary markings and assertions are required; for contracting officers, it is the framework for protecting the government’s interests while respecting legitimate contractor restrictions.

Other data rights provisions.

Acquisition of data.

Rights to technical data in successful proposals.

FAR 27.407 explains how the Government may obtain rights in technical data contained in successful proposals when the clause at 52.227-23, Rights to Proposal Data (Technical), is used. It covers the Government’s ability to receive unlimited rights in technical data from the winning proposal, the offeror’s opportunity to specifically identify pages of technical data that should be excluded from that unlimited-rights grant, and the effect of that exclusion on the data’s protection status. It also addresses how excluded technical data, along with any commercial and financial information in the proposal, remain subject to the proposal-information protections in FAR subpart 15.2 or 15.6 and any applicable agency supplements, meaning they are generally used only for evaluation and related procurement purposes. Finally, it points to a practical follow-on issue: if the Government will need access to excluded technical data during performance, the parties should consider obtaining those data with limited rights under FAR 27.404-2(c) if the data qualify. In practice, this section is about balancing the Government’s need to use proposal technical data after award against the contractor’s interest in protecting sensitive proposal content.

Cosponsored research and development activities.

FAR 27.408 addresses how the Government may handle data rights in cosponsored research and development when both the contractor and the Government contribute substantial funds or resources and their respective contributions to a particular item, component, process, or computer software cannot be readily separated. The section explains when a contracting officer may limit the Government’s rights in data developed and delivered under the contract, including the possibility of less than unlimited rights, license rights, or other tailored data-rights arrangements. It also covers the minimum protections that any lesser-rights arrangement must provide, such as Government use for agreed purposes, reprocurement rights where appropriate, and disclosure limits. The rule recognizes that cosponsored projects vary widely, so it does not prescribe a single clause; instead, it allows tailored clauses consistent with FAR 27.402 and the facts of the acquisition. It also discusses when a clause may be appropriate as a practical guide, including the approximate 50 percent contribution benchmark, the option to apply the clause to only specific tasks or work elements, and the situations where such a clause is not appropriate, such as projects intended to produce data for public dissemination or technologies already meant for public use. Finally, paragraph (b) explains that when contractor contributions are readily segregable and identified in the contract, the resulting data may be treated as limited rights data or restricted computer software, unless that treatment would conflict with the contract’s purpose, in which case the parties may negotiate a different arrangement consistent with paragraph (a).

Solicitation provisions and contract clauses.

FAR 27.409 tells contracting officers which data rights provisions and clauses to include in solicitations and contracts, and when special alternates or additional clauses are required. It covers the general rule that a contract should normally contain only one data rights clause, the standard use of 52.227-14, Rights in Data-General, and the exceptions for special works, existing data, commercial computer software, small business innovation research contracts, overseas performance, architect-engineer and construction work, Government-owned facilities used for research or production, and cosponsored research and development. It also addresses when to use Alternate I through Alternate V of 52.227-14, when to add 52.227-15, Representation of Limited Rights Data and Restricted Computer Software, and when to insert 52.227-16, Additional Data Requirements, or 52.227-17, Rights in Data-Special Works. In practice, this section is about matching the clause package to the type of work and the Government’s actual data needs so the contract clearly states what data will be delivered, what rights the Government receives, and what limits apply to disclosure, use, reproduction, copyright, or inspection. It is important because using the wrong clause, or failing to tailor the clause, can create disputes over data ownership, disclosure rights, software restrictions, and the contractor’s ability to assert copyright or protect proprietary information.