FAR 27.401—Definitions.
Plain-English Summary
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.
Key Rules
Data is broadly defined
"Data" means recorded information in any form or media and includes both technical data and computer software. It does not include information merely incidental to contract administration, such as financial, administrative, cost or pricing, or management information.
Form, fit, and function data
This category covers information sufficient to enable physical and functional interchangeability, including source, size, configuration, mating and attachment characteristics, functional characteristics, and performance requirements. For software, it includes source, functional characteristics, and performance requirements, but excludes source code, algorithms, processes, formulas, and flow charts.
Limited rights and limited rights data
"Limited rights" are the Government's rights in limited rights data as stated in a Limited Rights Notice. Limited rights data generally means non-software data that embody trade secrets or are commercial, financial, confidential, or privileged, when developed at private expense, including minor modifications.
Agency alternate definition allowed
Agencies may adopt an alternate definition of limited rights data that focuses on data developed at private expense that embody trade secrets or are commercial, financial, confidential, or privileged. Users must verify whether the agency has adopted this alternate formulation under the referenced FAR provision.
Restricted computer software and rights
Restricted computer software is software developed at private expense that is a trade secret, commercial or financial and confidential or privileged, or copyrighted, including minor modifications. "Restricted rights" are the Government's rights in restricted computer software as stated in a Restricted Rights Notice.
Unlimited rights are the broadest rights
Unlimited rights allow the Government to use, disclose, reproduce, prepare derivative works, distribute copies to the public, and perform and display publicly, for any purpose and in any manner, and to authorize others to do the same.
Responsibilities
Contracting Officer
Identify which data and software rights categories apply to deliverables, include the correct clauses and notices, and ensure solicitations and contracts reflect the intended rights in technical data and computer software. The contracting officer must also recognize when agency-specific definitions or alternate formulations may apply.
Contractor
Classify and mark data and software correctly, distinguish proprietary or privately developed material from information the Government may receive with broader rights, and understand that not all contract information is protected as technical data or software. The contractor should also ensure any claimed restrictions are supported by the applicable rights category.
Agency
Determine whether to adopt the alternate definition of limited rights data where permitted, and implement the subpart consistently through policy, clauses, and acquisition planning. The agency must also align internal handling rules with the rights categories defined here.
Government users and program personnel
Handle delivered data and software according to the applicable rights category, avoid unauthorized disclosure or reuse, and distinguish between information that may be shared broadly and information subject to limited or restricted rights.
Practical Implications
These definitions control whether the Government can share, modify, or reuse contractor-provided technical information and software, so they directly affect competition, sustainment, and follow-on procurement rights.
A common pitfall is over-marking or under-marking deliverables: contractors may try to restrict information that is actually form, fit, and function data or otherwise subject to broader Government rights, while agencies may assume they have unlimited rights without checking the contract basis.
Another frequent issue is confusing software source code and related development artifacts with the narrower form, fit, and function information allowed for software; source code and algorithms are specifically excluded from that definition.
Because "data" excludes ordinary contract administration information, parties should not treat cost, pricing, administrative, or management records as technical data rights issues unless another rule applies.
Always check the exact contract clause, notice language, and any agency-specific definition or deviation, because the rights outcome depends on both the FAR definition and the contract’s implementing terms.
Official Regulatory Text
As used in this subpart- Data means recorded information, regardless of form or the media on which it may be recorded. The term includes technical data and computer software. The term does not include information incidental to contract administration, such as financial, administrative, cost or pricing, or management information. Form, fit, and function data means data relating to items, components, or processes that are sufficient to enable physical and functional interchangeability, and data identifying source, size, configuration, mating and attachment characteristics, functional characteristics, and performance requirements. For computer software it means data identifying source, functional characteristics, and performance requirements, but specifically excludes the source code, algorithms, processes, formulas, and flow charts of the software. Limited rights means the rights of the Government in limited rights data as set forth in a Limited Rights Notice. Limited rights data means data, other than computer software, that embody trade secrets or are commercial or financial and confidential or privileged, to the extent that such data pertain to items, components, or processes developed at private expense, including minor modifications. (Agencies may, however, adopt the following alternate definition: Limited rights data means data (other than computer software) developed at private expense that embody trade secrets or are commercial or financial and confidential or privileged (see 27.404-2 (b)). Restricted computer software means computer software developed at private expense and that is a trade secret, is commercial or financial and confidential or privileged, or is copyrighted computer software, including minor modifications of the computer software. Restricted rights means the rights of the Government in restricted computer software as set forth in a Restricted Rights Notice. Unlimited rights means the rights of the Government to use, disclose, reproduce, prepare derivative works, distribute copies to the public, and perform publicly and display publicly, in any manner and for any purpose, and to have or permit others to do so.