Theory and practice of intellectual property
№ 2 / 2024

ISSN (Print) 2308-0361
ISSN (Online) 2519-2744

DOI: https://doi.org/10.33731/22024.305603

Submitted     2024-03-01
Accepted      2024-03-27
Published      2024-06-04

Protecting intellectual property in US defence acquisitions

Yuriy Kapitsa
Doctor of Legal Sciences/Dr. Habil. (Law), Director of the Centre for Intellectual Property Studies and Technology Transfer of the National Academy of Sciences of Ukraine
Ukraine
https://orcid.org/0000-0002-9449-8422

Yevhen Holovach
Leading IP professional of the Ukrainian National Office for Intellectual Property and Innovations (UANIPIO)
Ukraine

Pavlo Svidenko
IP professional of the Ukrainian National Office for Intellectual Property and Innovations (UANIPIO)
Ukraine

Abstract
The article examines the legislation and practice of IP protection under defence procurement in the USA. The legislation of the US regarding the creation of inventions by Federal Agencies is analysed as well: terms of use of inventions, technical information, and software in defence procurement. IP rights acquired by the US Government; types of licences granted. The practice of IP management in the US Ministry of Defence (DoD), the conditions for licensing inventions, the rights to which belong to the US Government, and the forms of technology transfer are studied. The following principles of US practice are noted, which are important for improving the system of protection of intellectual property rights in the field of defence:
a) peculiarities of the regulation of the creation of inventions by civil servants and military personnel;
b) obligations of Federal Agencies that acquire IP rights to ensure their legal protection, submit applications, and maintain patents in force;
c) identification of IP rights objects created by the executors of defence procurement, as well as by third parties before the conclusion of the procurement contract, and which are used in the products, works, and services that are the subject of the procurement. Acquisition by the Government of IP rights (licences) for the use of such IP;
d) determination of new IP rights objects created during procurement;
e) determination of the rights of the state customer and the executor in relation to IP rights created during the execution of defence purchases: (i) only at the expense of the customer, (ii) at the expense of joint financing of the customer and the executor, (iii) only at the expense of the executor;
f) creation of a centralized database of IP, which has been obtained by the Government in the field of defence, including during defence procurement;
g) determination of the procedure for payment by the state customer of royalties;
h) determination of the procedure for granting licences by Federal Agencies;
i) approximation of IP management principles to DoD practice, which includes, in particular, the IP Cadre that provides assistance on IP in procurement contracts;
j) determination of the principles of technology transfer created in the DoD and its divisions; receiving royalties and payment of remuneration by inventors for the use of IP rights.

Keywords: defence procurement, intellectual property, inventions, US

References

35 U.S.C. 18 Patent rights in inventions made with Federal assistance.
https://uscode.house.gov/view.xhtml?path=/prelim@title35/part2/chapter18&edition=prelim

37 CFR Part 501- Uniform Patent Policy for Rights in Inventions Made by Government Employees.
https://www.ecfr.gov/current/title-37/chapter-IV/part-501

35 U.S.C. 207–209, 37 CFR Part 404 — Licensing of Government — owned inventions.
https://www.ecfr.gov/current/title-37/chapter-IV/part-404

FAR. Part 27, Patents, Data, and Copyrights.
https://www.acquisition.gov/ far/part-27

Defence Federal Acquisition Regulation Supplement (DFARS). Part 227 — Patent, Data and Copyrights.
https://www.acquisition.gov/dfars/part-227-patents-data-and-copyrights

DFARS 252.227-7013 — Rights in Technical Data — Other Than Commercial Products and Commercial Services.
https://www.acquisition.gov/dfars/252.227-7013-rights-technical-data—other-commercial-products-and-commercial-services

DFARS 252.227-7015 — Technical Data — Commercial Products and Commercial Services.
https://www.acquisition.gov/dfars/252.227-7015-technical-data-commercial-products-and-commercial-services

DOD Instruction 5010.44 — Intellectual property acquisition and licensing. 16.10.2019.
https://www.esd.whs.mil/Portals/54/Documents/DD/issuances/ dodi/501044p.pdf

Executive Order 10096 Providing for a uniform patent policy for the Government with respect to inventions made by Government employees and for the administration of such policy.
https://www.archives.gov/federal-register/codification/executive-order/10096.html

15 U.S. Code § 3710c — Distribution of royalties received by Federal agencies.
https://www.law.cornell.edu/uscode/text/15/3710c

Про державне регулювання діяльності у сфері трансферу технологій : Закон України від 14 вересня 2006 року № 143-V. Вісник Верховної Ради України. 2006. № 45. Ст. 434.

Про затвердження мінімальних ставок винагороди авторам технологій та особам, які здійснюють їх трансфер : постанова Кабінету Міністрів України від 4.12.2019 р.
https://zakon.rada.gov.ua/laws/show/1030-2019-%D0%BF

Air Force’s Technology Transfer and Transition Program. Report. 2021.
https://www.aft3.af.mil/Portals/74/Pages/Publications/DAFT3-FY21_AnnualReport-PACLEARED-AFRL2022-1519.pdf?ver=rv1NBrM_C9B_j_Kj8gsx4Q==

The Bayh-Dole Act of 1980 (P.L. 96-517).
https://www.govinfo.gov/ content/pkg/USCODE-2011-title35/html/USCODE-2011-title35-partII-chap18.htm

U.S.C. 10 § 2320 — Rights in technical data.
https://uscode.house.gov/ view.xhtml?req=royalties&f=treesort&num=14

IP White Paper Draft prepared by Defence Contract Management Agency (DCMA), Commercial Item Group (CIG). 2023. DoD.
https://www.acq.osd.mil/ asda/ae/ada/external-sites/dod-ip-forum/presentation-materials/

Intellectual Property Cadre. Office of the Undersecretary of Defence.
https://www.acq.osd.mil/asda/ae/ada/ip-cadre.html

Department of the Air Force Technology Transfer and Transition.
https://www.aft3.af.mil/

Department of the Navy Technology Transfer Program.
https://www.navytechtransfer.navy.mil/

Defence acquisition. DOD Should Take Additional Actions to Improve How It Approaches Intellectual Property. United States Government Accountability Office. Report to Congressional Committees. 2021.
https://www.gao.gov/products/gao-22-104752

DOD Instruction 5535.08. DOD domestic technology transfer program. 2022.
https://www.esd.whs.mil/

Intellectual Property and Technical Data in DOD Acquisitions. Congressional research Service. April 22, 2022.
https://crsreports.congress.gov/product/ pdf/IF/IF12083