Sec. 813. RIGHTS IN TECHNICAL DATA

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## SEC. 813 RIGHTS IN TECHNICAL DATA ###

(a)Rights in Technical Data Relating to Major Weapon Systems Paragraph

(2)of section 2321(f) of title 10, United States Code, is amended to read as follows: > > #### “(2) > > In the case of a challenge to a use or release restriction that is asserted with respect to technical data of a contractor or subcontractor for a major system or a subsystem or component thereof on the basis that the major weapon system, subsystem, or component was developed exclusively at private expense— > > > ##### “(A) > > the presumption in paragraph

(1)shall apply— > > > ###### “(i) > > with regard to a commercial subsystem or component of a major system, if the major system was acquired as a commercial item in accordance with section 2379(a) of this title; > > > ###### “(ii) > > with regard to a component of a subsystem, if the subsystem was acquired as a commercial item in accordance with section 2379(b) of this title; and > > > ###### “(iii) > > with regard to any other component, if the component is a commercially available off-the-shelf item or a commercially available off-the-shelf item with modifications of a type customarily available in the commercial marketplace or minor modifications made to meet Federal Government requirements; and > > > ##### “(B) > > in all other cases, the challenge to the use or release restriction shall be sustained unless information provided by the contractor or subcontractor demonstrates that the item was developed exclusively at private expense.” > . ###

(b)Government-industry Advisory Panel ####

(1)Establishment Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense, acting through the Under Secretary of Defense for Acquisition, Technology, and Logistics, shall establish a Government-industry advisory panel for the purpose of reviewing sections 2320 and 2321 of title 10, United States Code, regarding rights in technical data and the validation of proprietary data restrictions and the regulations implementing such sections, for the purpose of ensuring that such statutory and regulatory requirements are best structured to serve the interests of the taxpayers and the national defense. The panel shall develop recommendations for changes to sections 2320 and 2321 of title 10, United States Code, and the regulations implementing such sections. ####

(2)Membership The panel shall be chaired by an individual selected by the Under Secretary, and the Under Secretary shall ensure that— #####

(A)the government members of the advisory panel are knowledgeable about technical data issues and appropriately represent the three military departments, as well as the legal, acquisition, logistics, and research and development communities in the Department of Defense; and #####

(B)the private sector members of the advisory panel include independent experts and individuals appropriately representative of the diversity of interested parties, including large and small businesses, traditional and non-traditional government contractors, prime contractors and subcontractors, suppliers of hardware and software, and institutions of higher education. ####

(3)Scope of review In conducting the review required by paragraph (1), the advisory panel shall give appropriate consideration to the following factors: #####

(A)Ensuring that the Department of Defense does not pay more than once for the same work. #####

(B)Ensuring that Department of Defense contractors are appropriately rewarded for their innovation and invention. #####

(C)Providing for cost-effective reprocurement, sustainment, modification, and upgrades to Department of Defense systems. #####

(D)Ensuring that the Department of Defense and Department of Defense contractors have the technical data rights necessary to support the modular open system approach requirement set forth in section 2446a of title 10, United States Code, taking into consideration the distinct characteristics of major system platforms, major system interfaces, and major system components developed exclusively with Federal funds, exclusively at private expense, and with a combination of Federal funds and private expense. #####

(E)Encouraging the private sector to invest in new products, technologies, and processes relevant to the missions of the Department of Defense. #####

(F)Ensuring that the Department of Defense has appropriate access to innovative products, technologies, and processes developed by the private sector for commercial use. ####

(4)Final report Not later than February 1, 2017, the advisory panel shall submit its final report and recommendations to the Secretary of Defense and the congressional defense committees. Not later than 60 days after receiving the report, the Secretary shall submit any comments or recommendations to the congressional defense committees.