DFARS Part 227: Patents, Data, and Copyrights

In plain English

DFARS Part 227 implements DoD policies for patents, technical data, and copyrights in defense contracts. It covers rights in inventions, technical data, and computer software, including special rules for commercial items, SBIR/STTR data, and foreign agreements. Contractors need to understand these rules to protect their intellectual property while complying with Government data rights requirements.

Key rules

• Use the clause at 252.227-7039, Patents—Reporting of Subject Inventions, in solicitations and contracts that contain the FAR patent rights clause. (227.303)
• Interim and final invention reports and notification of subcontracts for experimental, developmental, or research work may be submitted on DD Form 882. (227.304-1)
• DoD activities must follow the guidance in DFARS subparts 227.71 and 227.72 instead of FAR subpart 27.4 for technical data and computer software. (227.400)
• For commercial products, commercial services, or commercial processes, DoD shall acquire only the technical data customarily provided to the public, with certain exceptions. (227.7102-1)
• The Government obtains license rights in technical data, including copyright licenses, through the clause at 252.227-7013 or 252.227-7015 as applicable. (227.7103-4, 227.7102-2)
• Contractors must identify and mark technical data with restrictive markings as required by the solicitation provision at 252.227-7017 and the applicable data rights clause. (227.7103-10)
• The Government has the right to review, verify, challenge, and validate asserted restrictions on technical data, and may use the clause at 252.227-7037 for validation. (227.7103-13, 227.7102-3)
• For SBIR/STTR contracts, the clause at 252.227-7018 provides special data rights protections for small businesses. (227.7104-2, 227.7104-4)

Who does what

In practice

• When bidding, carefully review the data rights clauses to understand what technical data you must deliver and what rights the Government will receive.
• If you are a small business under SBIR/STTR, your data rights are protected by specific clauses, so ensure you use them correctly.
• For commercial products, you generally only need to provide technical data that is customarily provided to the public, but check for exceptions.
• Properly mark and assert restrictions on your technical data to protect your intellectual property; otherwise, you may lose rights.

Common pitfalls

• Failing to identify and assert restrictions on technical data before delivery can result in the Government obtaining unlimited rights (227.7103-3, 227.7103-10).
• Using incorrect or nonconforming markings on technical data may lead to the Government challenging or ignoring your restrictions (227.7103-12).
• Assuming that all technical data developed under a contract automatically belongs to the contractor; the Government's rights depend on the applicable clause and the source of funding (227.7103-5).
• Overlooking the special data rights provisions for SBIR/STTR contracts can cause unnecessary loss of rights (227.7104-2).

Written by AI from this part's codified text (2026-10-04); cited sections are checked against the part. A guide, not legal advice: the regulation text, the solicitation and your contract rule.