FAR 27.404—Basic rights in data clause.
Plain-English Summary
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.
Key Rules
Use the basic data-rights clause
FAR 52.227-14 is the standard clause used to establish the government’s rights in data under most contracts where technical data or computer software may be developed, delivered, or used. The clause defines the scope of the government’s license rights and the contractor’s obligations for marking and asserting restrictions.
Use the representation provision when needed
FAR 52.227-15 is used to require offerors to identify whether they intend to furnish limited rights data or restricted computer software. This helps the government know, before award, whether special restrictions may apply to the data or software being offered.
Contractor must identify restricted items
When the representation is used, the offeror must disclose any limited rights data or restricted computer software it expects to provide. This allows the contracting officer to evaluate the impact of those restrictions on the government’s intended use, disclosure, and support of the item.
Government rights depend on the clause and assertions
The government’s rights are not unlimited; they are determined by the clause, the type of data or software, and any properly asserted restrictions. Proper identification and marking are essential because unasserted or improperly marked material may be treated as delivered without the claimed restriction.
Contracting officer must manage solicitation and award risk
The contracting officer must decide whether to include the clause and representation and must use the information received to assess whether the government can accept the proposed restrictions. This is important for avoiding later disputes over data delivery, use rights, and supportability.
Responsibilities
Contracting Officer
Include FAR 52.227-14 when applicable, decide whether to use FAR 52.227-15, review offeror representations about limited rights data and restricted computer software, and ensure the contract reflects the government’s intended rights and any accepted restrictions.
Offeror/Contractor
Identify any limited rights data or restricted computer software it proposes to furnish, make required representations, and properly mark or otherwise assert restrictions in accordance with the clause so the government can recognize and administer those rights.
Agency
Use these provisions to protect the government’s data-rights interests, support acquisition planning, and ensure the agency understands the downstream effects of any restrictions on operation, maintenance, competition, and reprocurement.
Practical Implications
This section is a front-end risk control: it helps prevent surprises after award about what data or software the government can actually use or share.
A common pitfall is failing to identify restricted data or software early, which can lead to disputes, rejected markings, or loss of claimed restrictions.
Contracting officers should pay close attention to whether the acquisition will require technical data, software deliverables, or long-term sustainment support, because those factors make data-rights issues more important.
Contractors should treat the representation and marking requirements seriously; incomplete or inconsistent assertions can undermine proprietary claims.
For both sides, the practical goal is to align the government’s need for use, maintenance, and competition with the contractor’s legitimate protection of proprietary information.
Official Regulatory Text
This section describes the operation of the clause at 52.227-14 , Rights in Data-General, and also the use of the provision at 52.227-15 , Representation of Limited Rights Data and Restricted Computer Software.