Patrick Hogan Vice President and Associate General Counsel Intellectual Property & Technology Law L Seminar on R&D Commercial Practices and Government.

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Presentation transcript:

Patrick Hogan Vice President and Associate General Counsel Intellectual Property & Technology Law L Seminar on R&D Commercial Practices and Government Contracts April 22, 2002

US Government is Lockheed Martin’s Primary Customer R&D Work Source of Funding: US Gov’t Contract Research & Development (“CRAD”) Regulations: FAR DFARS NASA FAR SUP Government’s Rights: Mixed Funding Private Funding (IRAD, B&P, etc.) Unlimited Rights Gov’t Purpose Rights Limited/Restricted Rights

Develop a Corporate Internal Process that Maps to Regulations and Associates R&D IP Deliverables* with the Source of Funding of the IP Deliverables If Process determines that Private Funded or Mixed Funded IP will be delivered to Government then Notify and Mark the Gov’t prior to contract award (usually in proposal) that IP will be delivered with other than unlimited rights the delivered IP with appropriate restrictive legend * But see Deferred Ordering Clause

Lockheed Martin Subprocess: Invention Disclosure Reporting System CRAD Inventions Mixed Funded Inventions Private Funded Inventions InventIt™ (Lockheed Martin’s online Invention Disclosure System) Subject Invention? Invention Review Board Decision Factors:  Any Gov’t Rights (Subject Invention)?  Protects Key Technologies?  Commercialization Applications?  Meets Offset Requirements? Patent Trade Secret Publish

Problem Areas in Protecting IP in Government Contracts  Failure to follow our own process (e.g. forget to mark)  Definition of “Subject Invention” includes first reduction to practice  Subcontractors refuse to accept FAR/DFARS IP flowdown clauses (give Prime authority to negotiate with Sub?)  Multiple IP Regulations (DOD vs. Civilian Agencies)  Negotiating custom IP rights with Contracting Officers in mixed-funding situations (IP Guide helps)

Is There a Need to Price IP Separately in a Government Contract?  Lockheed Martin typically does not price IP separately  In mixed funding situations we might negotiate non- standard rights at the same price  If US or Foreign Government wants option for Competitive Data Packages we will price separately