27.404-2 Limited rights data and restricted

computer software.

(a) General. The basic clause at 52.227-14, Rights in Data-General, enables the contractor to protect

qualifying limited rights data and restricted computer software by withholding the data from the

Government and instead delivering form, fit, and function data.

(b) Alternate definition of limited rights data. For contracts that do not require the development,

use, or delivery of items, components, or processes that are intended to be acquired by or for the

Government, an agency may adopt the alternate definition of limited rights data set forth in

Alternate I to the clause at 52.227-14. The alternate definition does not require that the data pertain

to items, components, or processes developed at private expense; but rather that the data were

developed at private expense and embody a trade secret or are commercial or financial and

confidential or privileged.

(c) Protection of limited rights data specified for delivery.

(1) The clause at 52.227-14 with its Alternate II enables the Government to require delivery of

limited rights data rather than allow the contractor to withhold the data. To obtain delivery, the

contract may identify and specify data to be delivered, or the contracting officer may require, by

written request during contract performance, the delivery of data that has been withheld or

identified to be withheld under paragraph (g)(1) of the clause. In addition, the contract may

specifically identify data that are not to be delivered under Alternate II or which, if delivered, will be

delivered with limited rights. The limited rights obtained by the Government are set forth in the

Limited Rights Notice contained in paragraph (g)(3) of Alternate II. Agencies shall not, without

permission of the contractor, use limited rights data for purposes of manufacture or disclose the

data outside the Government except as set forth in the Notice. Any disclosure by the Government

shall be subject to prohibition against further use and disclosure by the recipient. The following are

examples of specific purposes that may be adopted by an agency in its supplement and added to the

Limited Rights Notice of paragraph (g)(3) of Alternate II of the clause:

(i) Use (except for manufacture) by support service contractors.

(ii) Evaluation by nongovernment evaluators.

(iii) Use (except for manufacture) by other contractors participating in the Government’s program of

which the specific contract is a part.

(iv) Emergency repair or overhaul work.

(v) Release to a foreign government, or its instrumentalities, if required to serve the interests of the

U.S. Government, for information or evaluation, or for emergency repair or overhaul work by the

foreign government.

(2) The provision at 52.227-15, Representation of Limited Rights Data and Restricted Computer

Software, helps the contracting officer to determine whether the clause at 52.227-14 should be used

with its Alternate II. This provision requests that an offeror state whether limited rights data are

likely to be delivered. Where limited rights data are expected to be delivered, use Alternate II.

Where negotiations are based on an unsolicited proposal, the need for Alternate II of the clause at
52.227-14 should be addressed during negotiations or discussions, and if Alternate II was not

included initially it may be added by modification, if needed, during contract performance.

(3) If data that would otherwise qualify as limited rights data is delivered as a computer database,

the data shall be treated as limited rights data, rather than restricted computer software, for the

purposes of paragraph (g) of the clause at 52.227-14.

(d) Protection of restricted computer software specified for delivery.

(1) Alternate III of the clause at 52.227-14, enables the Government to require delivery of restricted

computer software rather than allow the contractor to withhold such restricted computer software.

To obtain delivery of restricted computer software the contracting officer shall-

(i) Identify and specify the deliverable computer software in the contract; or

(ii) Require by written request during contract performance, the delivery of computer software that

has been withheld or identified to be withheld under paragraph (g)(1) of the clause.

(2) In considering whether to use Alternate III, contracting officers should note that, unlike other

data, computer software is also an end item in itself. Thus, the contracting officer shall use Alternate

III if delivery of restricted computer software is required to meet agency needs.

(3) Unless otherwise agreed (see paragraph (d)(4) of this subsection), the restricted rights obtained

by the Government are set forth in the Restricted Rights Notice contained in paragraph (g)(4)

(Alternate III). Such restricted computer software will not be used or reproduced by the

Government, or disclosed outside the Government, except that the computer software may be-

(i) Used or copied for use with the computers for which it was acquired, including use at any

Government installation to which the computers may be transferred;

(ii) Used or copied for use with a backup computer if any computer for which it was acquired is

inoperative;

(iii) Reproduced for safekeeping (archives) or backup purposes;

(iv) Modified, adapted, or combined with other computer software, provided that the modified,

adapted, or combined portions of the derivative software incorporating any of the delivered,

restricted computer software shall be subject to the same restricted rights;

(v) Disclosed to and reproduced for use by support service contractors or their subcontractors, in

accordance with paragraphs (3)(i) through (iv) of this section; and

(vi) Used or copied for use with a replacement computer.

(4) The restricted rights set forth in paragraph (d)(3) of this subsection are the minimum rights the

Government normally obtains with restricted computer software and will automatically apply when

such software is acquired under the Restricted Rights Notice of paragraph (g)(4) of Alternate III of

the clause at 52.227-14. However, the contracting officer may specify different rights in the

contract, consistent with the purposes and needs for which the software is to be acquired. For

example, the contracting officer should consider any networking needs or any requirements for use

of the computer software from remote terminals. Also, in addressing such needs, the scope of the

restricted rights may be different for the documentation accompanying the computer software than
for the programs and databases. Any additions to, or limitations on, the restricted rights set forth in

the Restricted Rights Notice of paragraph (g)(4) of Alternate III of the clause at 52.227-14 shall be

expressly stated in the contract or in a collateral agreement incorporated in and made part of the

contract, and the notice modified accordingly.

(5) The provision at 52.227-15, Representation of Limited Rights Data and Restricted Computer

Software, helps the contracting officer determine whether to use the clause at 52.227-14 with its

Alternate III. This provision requests that an offeror state whether restricted computer software is

likely to be delivered under the contract. In addition, the need for Alternate III should be addressed

during negotiations or discussions with an offeror, particularly where negotiations are based on an

unsolicited proposal. However, if Alternate III is not used initially, it may be added by modification, if

needed, during contract performance.

Parent topic: 27.404 Basic rights in data clause.