1. NDIA Small Business Division Subcommittee on Improving IP Protection for Small Businesses Mission Statement Overview Alison Brown

2. Background Small businesses are essential to provide diversification of industrial base and bringing innovation into the defense acquisition process Small businesses can improve the ability to insert component technologies into large contracts to stimulate competition and reduce over-all program risk Intellectual property protection is fundamental to motivate small businesses to work within the defense acquisition process

3. Sec John Young USD(AT&L) on the Small Business: Balancing Objectives & Resources "Dear AT&L Team Members, We should all work together to streamline the placement of contracts. However, we cannot let the challenge of placing contracts lead to bad decisions and behaviors. I have encountered a couple of examples in this area. In one specific case, a small firm proposed a concept for a component upgrade to a DoD system. The program office urged the small company to go to the prime contractor with their product. In certain cases, where there are integration risks, this may be appropriate. In this case, there was virtually no integration risk. The reality was that the Defense Department would be charged significantly greater costs for buying the component through a prime. The small firm was urged to go to the prime solely for the convenience of using the existing prime contract. Further, this flawed approach potentially limits DoD's access to innovation because many firms will feel their intellectual property is put at risk through the prime contract process."

4. Mission Statement Explore methods of improving Intellectual Property protection for small businesses in Prime/Subcontractor relationships –Address concerns raised by Sec Young and industry that DoD's access to innovation is being limited because many firms feel their intellectual property is put at risk through the prime contract process. Report back to NDIA leadership with recommendations on how NDIA could support their small business and prime contractor members on improved IP Protection –Develop solutions to improve IP protection and DoD’s access to innovations through Prime Subcontracts

5. Why is NDIA involved? IP protection in defense acquisition is a complex process –Involves policy, statute and business practices NDIA membership provides perspective on problem from multiple view points –Large and Small Business, Government and Policy, Legislation and Legal Motivation is to collaborate within NDIA forum to address IP Protection potential improvements –Develop business practices, guidelines and standards –Provide recommendations for policy or legislation changes

6. Subcommittee Objectives Solicit input from small businesses on previous IP issues where they felt that their Intellectual Property was put at risk through the prime contract process. Solicit input from Prime contractors on success stories they have had with Prime/Subcontract relationships where technology component insertion was accomplished and Intellectual Property protection maintained. Compile case studies of examples of good and bad situations regarding technology component insertion using the Prime/Subcontract process

7. Subcommittee Objectives (cont) Hold subcommittee meetings to get input from industry, professional and DoD representatives on methods of improving Intellectual Property protection Hold subcommittee meetings to extract key lessons learned from the input received and from case studies compiled from NDIA members. Investigate options put forward for improving small business Intellectual Property protection in the Prime/Subcontract process.

8. Subcommittee Objectives (cont) Prepare a list of recommendations for consideration by NDIA leadership where NDIA could engage with their members to provide solutions to address improved IP protection in order to improve DoD’s access to innovations through the Prime/Subcontract process. Prepare a list of recommendations for consideration by NDIA leadership where NDIA could recommend changes to OSD in Defense Procurement and Acquisition Policy which would improve DoD’s access to innovations through the Prime/Subcontract process.

9. Accomplished to date NDIA released web survey –Solicited input from small and large businesses on previous IP issues where they felt that their Intellectual Property was put at risk through the prime contract process. Outreach to Government, Industry and Professional Sources on IP Protection Best Practices and Issues –Compiled reference material on FTP site –In process of structuring Working Groups

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