Sec. 1833. PROPRIETARY CONTRACTOR DATA AND RIGHTS IN TECHNICAL DATA

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## SEC. 1833 PROPRIETARY CONTRACTOR DATA AND RIGHTS IN TECHNICAL DATA ###

(a)New Chapter ####

(1)In general **[**[10 U.S.C. 3771](/us/usc/t10/s3771)**]** Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115-232), is amended by striking chapter 275 and inserting the following: > > ## “CHAPTER 275 **PROPRIETARY CONTRACTOR DATA AND RIGHTS IN TECHNICAL DATA** > > **[**[10 U.S.C. 3771](/us/usc/t10/s3771)**]** > > > ### “Subchapter I RIGHTS IN TECHNICAL DATA > > **[**[10 U.S.C. 3771](/us/usc/t10/s3771)**]** > > > ## “SEC. 3771 Rights in technical data: regulations > > **[**[10 U.S.C. 3771](/us/usc/t10/s3771)**]** > > > ## “SEC. 3772 Rights in technical data: provisions required in contracts > > **[**[10 U.S.C. 3772](/us/usc/t10/s3772)**]** > > > ## “SEC. 3773 Domestic business concerns: programs for replenishment parts > > **[**[10 U.S.C. 3773](/us/usc/t10/s3773)**]** > > > ## “SEC. 3774 Major weapon systems and subsystems: long-term technical data needs > > **[**[10 U.S.C. 3774](/us/usc/t10/s3774)**]** > > > ## “SEC. 3775 Definitions” > > **[**[10 U.S.C. 3775](/us/usc/t10/s3775)**]** > . ####

(2)Tables of chapters amendments The tables of chapters at the beginning of subtitle A, and at the beginning of part V of subtitle A, of title 10, United States Code, are amended by striking the item relating to chapter 275 and inserting the following new item:" “275.Proprietary Contractor Data and Rights in Technical Data ” " ###

(b)Transfer of Subsection

(a)of Section 2320 ####

(1)Transfer Subsection

(a)of section 2320 of title 10, United States Code, is transferred to section 3771 of such title, as added by subsection (a), inserted after the section heading, and amended by redesignating paragraphs

(2)and

(3)as subsections

(b)and (c), respectively. ####

(2)Internal redesignations and insertion of headings in new 3771(a) Subsection

(a)of such section, as so transferred and amended, is amended— #####

(A)by striking “

(1)The Secretary of ” and inserting > “ Regulations Required.— > > > #### “(1) In general > > The Secretary of” > ; and #####

(B)by designating the third sentence as paragraph

(2)and in that paragraph— ######

(i)by striking “Such regulations may not” and inserting “Other rights not impaired.—Regulations prescribed under paragraph

(1)may not”; ######

(ii)by striking “ impair any right of the ” and inserting > “impair— > > > ##### “(A) > > any right of the” > ; and ######

(iii)by striking “ by law ” and all that follows through “ the right of a contractor ” and inserting > “by law; or > > > ##### “(B) > > the right of a contractor” > . ####

(3)Internal redesignations and insertion of headings in new 3771(b) Subsection

(b)of such section, as so transferred and redesignated, is amended— #####

(A)by striking “Such regulations” and inserting “Required Provisions.—Regulations prescribed under subsection (a)”; #####

(B)by redesignating subparagraphs

(A)through

(I)as paragraphs

(1)through (9), respectively; #####

(C)in paragraph (1), as so redesignated, by redesignating clauses

(i)and

(ii)as subparagraphs

(A)and (B), respectively; #####

(D)in paragraph (2), as so redesignated, by striking “subparagraphs (C), (D), and (G)” and inserting “paragraphs (3), (4), and (7)”; #####

(E)in paragraph (3), as so redesignated— ######

(i)by striking “subparagraph (b).—Subparagraph

(B)does not” and inserting “paragraph (2).—Paragraph

(2)does not”; and ######

(ii)by redesignating clauses (i), (ii), (iii), and

(iv)as subparagraphs (A), (B), (C), and (D), respectively; #####

(F)in paragraph (4), as so redesignated— ######

(i)by striking “subparagraph (b).—Notwithstanding subparagraph (B)” and inserting “paragraph(2).— Notwithstanding paragraph (2)”; ######

(ii)by redesignating clauses (i), (ii), and

(iii)as subparagraphs (A), (B), and (C), respectively; and ######

(iii)in subparagraph (A), as so redesignated, by redesignating subclauses (I), (II), and

(III)as clauses (i), (ii), and (iii), respectively; #####

(G)in paragraph (5), as so redesignated— ######

(i)by striking “ Mixed funding.—Except as provided in subparagraphs

(F)and (G), ” and inserting > “ Mixed funding.— > > > ##### “(A) In general > > Except as provided in paragraphs

(6)and (7),” > ; and ######

(ii)by designating the second sentence as subparagraph (B), realigning that subparagraph 2 ems to the right, and inserting “Factors to be considered.—” before “The establishment of”; #####

(H)in paragraph (6), as so redesignated, by striking “subparagraph (E)” and inserting “paragraph (5)”; #####

(I)in paragraph (7), as so redesignated— ######

(i)by striking “ Mixed funding.—Notwithstanding subparagraphs

(B)and

(E)” and inserting > “ Mixed funding.— > > > ##### “(A) > > Notwithstanding paragraphs

(2)and (5)” > ; ######

(ii)by striking “section 2446a” and inserting “section 4401”; and ######

(iii)by designating the second and third sentences as subparagraphs

(B)and (C), respectively; #####

(J)in paragraph (8), as so redesignated— ######

(i)by inserting “Limitations on requirements related to contractor or subcontractor rights in technical data.—” before “A contractor or subcontractor”; ######

(ii)by redesignating clauses

(i)and

(ii)as subparagraphs

(A)and (B), respectively; ######

(iii)in subparagraph (A), as so redesignated, by redesignating subclauses (I), (II), and

(III)as clauses (i), (ii), and (iii), respectively; ######

(iv)in clause (i), as so redesignated, by striking “subparagraph (A)” and inserting “paragraph (1)”; ######

(v)in clause (ii), as so redesignated, by striking “subparagraph (C)” and inserting “paragraph (3)”; ######

(vi)in clause (iii), as so redesignated, by striking “subparagraph (D)” and inserting “paragraph (4)”; and ######

(vii)in subparagraph (B), as so redesignated, by striking “subparagraph (B)” and inserting “paragraph (2)”; and #####

(K)in paragraph (9), as so redesignated— ######

(i)by inserting “Actions authorized if necessary to develop alternative sources of supply and manufacture.—” before “The Secretary of Defense”; ######

(ii)by redesignating clauses (i), (ii), and

(ii)as subparagraphs (A), (B), and (C), respectively; ######

(iii)in subparagraph (A), as so redesignated, by striking “subparagraph

(C)or (D)” and inserting “paragraph

(3)or (4)”; and ######

(iv)in subparagraph (B), as so redesignated, by striking “this section” and inserting “this subchapter”. ####

(4)Internal redesignations and insertion of headings in new 3771(c) Subsection

(c)of such section, as so transferred and redesignated, is amended— #####

(A)by inserting “Secretary of Defense to Define Terms.—” before “The Secretary of”; #####

(B)by striking “paragraph (1)” and inserting “subsection (a)”; #####

(C)by striking “ the Secretary shall specify ” and inserting > “the Secretary— > > > #### “(1) > > shall specify” > ; #####

(D)by striking “ treated and shall specify ” and inserting > “treated; and > > > #### “(2) > > shall specify” > ; and #####

(E)by striking “this paragraph” and inserting “this subsection”. ###

(c)Transfer of Subsections

(b)and

(c)of Section 2320 ####

(1)Transfer Subsections

(b)and

(c)of section 2320 of title 10, United States Code, are transferred to section 3772 of such title, as added by subsection (a), inserted after the section heading, and redesignated as subsections

(a)and (b), respectively. ####

(2)Internal redesignations and insertion of headings in new 3772(a) Subsection

(a)of such section, as so transferred and redesignated, is amended— #####

(A)by inserting “Contract Provisions Relating to Technical Data.—” before “Regulations prescribed under”; #####

(B)by striking “subsection (a)” and inserting “section 3771 of this title”; #####

(C)by striking “section 2303” and inserting “section 3063”; #####

(D)in paragraph (1), by striking “section 2321(f)” and inserting “section 3784”; #####

(E)in paragraph (6)— ######

(i)by striking “ the contractor to revise ” and inserting > “the contractor— > > > ##### “(A) > > to revise” > ; and ######

(ii)by striking “ the contract and to deliver ” and inserting > “the contract; and > > > ##### “(B) > > to deliver” > ; #####

(F)in paragraph (7)— ######

(i)by striking “ is found to be ” and inserting > “is found— > > > ##### “(A) > > to be” > ; and ######

(ii)by striking “ or inadequate or to not ” and inserting > “or inadequate; or > > > ##### “(B) > > to not” > ; #####

(G)in paragraph (9)(B)(ii), by striking “subparagraphs (D)(i)(II), (F), and

(G)of subsection (a)(2)” and inserting “paragraphs (4)(A)(ii), (6), and

(7)of section 3771(b) of this title”; and #####

(H)in paragraph (10), by striking “section 2321(d)” and inserting “section 3782”. ####

(3)Internal redesignations in new 3772(b) Subsection

(b)of such section, as so transferred and redesignated, is amended— #####

(A)by striking “in this section or in section 2305(a)” and inserting “in this subchapter or in section 3208”; and #####

(B)in paragraph (2), by striking “subsection (a)” and inserting “section 3771 of this title”. ###

(d)Transfer of Subsection

(d)of Section 2320 Subsection

(d)of section 2320 of title 10, United States Code, is transferred to section 3773 of such title, as added by subsection (a), inserted after the section heading, and amended— ####

(1)by striking the subsection designation; and ####

(2)by striking “this subsection” and inserting “this section”. ###

(e)Transfer of Subsection

(e)and

(f)of Section 2320 ####

(1)Transfer Subsections

(e)and

(f)of section 2320 of title 10, United States Code, are transferred to section 3774 of such title, as added by subsection (a), inserted after the section heading, and redesigned as subsections

(a)and (c), respectively. ####

(2)Designation of new 3774(b) The third sentence of subsection

(a)of such section, as so transferred and redesignated, is designated as subsection (b). ####

(3)Amendments to new 3774(a) Subsection

(a)of such section, as so amended, is further amended— #####

(A)by striking “ The Secretary of Defense shall require ” and inserting > “ Assessments and Acquisitions Strategies.— > > > #### “(1) > > The Secretary of Defense shall require” > ; #####

(B)by designating the second sentence as paragraph (2); #####

(C)in paragraph (1), as designated by subparagraph (A)— ######

(i)by striking “ to assess the long-term ” and inserting > “to— > > > ##### “(A) > > assess the long-term” > ; and ######

(ii)by striking “ systems and subsystems and establish ” and inserting > “systems and subsystems; and > > > ##### “(B) > > establish” > ; and #####

(D)in paragraph (2), as designated by subparagraph (B)— ######

(i)by striking “ may include the development ” and inserting > “may include— > > > ##### “(A) > > the development” > ; and ######

(ii)by striking “ Department of Defense or competition for ” and inserting > “Department of Defense; or > > > ##### “(B) > > competition for” > . ####

(4)Amendments to new 3774(b) Subsection

(b)of such section, as designated by paragraph (2), is amended— #####

(A)by inserting “Requirements Relating to Assessments and Acquisition Strategies.—” before “Assessments and corresponding”; and #####

(B)by striking “developed under” and all that follows through “with respect to” and inserting “developed under subsection

(a)with respect to”. ####

(5)Amendments to new 3774(c) Subsection

(c)of such section, as redesignated by paragraph (1), is amended— #####

(A)by striking “ Licenses.—The Secretary ” and inserting > “ Licenses.— > > > #### “(1) > > The Secretary” > ; #####

(B)by designating the second sentence as paragraph (2); and #####

(C)in paragraph (2), as so designated, by striking “subsection (e)” and inserting “subsection (a)”. ###

(f)Transfer of Subsection

(g)and

(h)of Section 2320 ####

(1)Transfer Subsections

(g)and

(h)of section 2320 of title 10, United States Code, are transferred to section 3775 of such title, as added by subsection (a), inserted after the section heading, and redesigned as subsections

(a)and (b), respectively. ####

(2)Conforming amendments #####

(A)Such subsections

(a)and (b), as so transferred and redesignated, are each amended by striking “In this section,” and inserting “In this subchapter,”. #####

(B)Such subsection

(b)is amended by striking “section 2446a” and inserting “section 4401”. ###

(g)New Subchapter Chapter 275 of title 10, United States Code, as added by subsection (a), is amended by adding at the end the following new subchapter: > > ### “Subchapter II VALIDATION OF PROPRIETARY DATA RESTRICTIONS > > **[**[10 U.S.C. 3781](/us/usc/t10/s3781)**]** > > > ## “SEC. 3781 Technical data: contractor justification for restrictions; review of restrictions > > **[**[10 U.S.C. 3781](/us/usc/t10/s3781)**]** > > > ## “SEC. 3782 Technical data: challenges to contractor restrictions > > **[**[10 U.S.C. 3782](/us/usc/t10/s3782)**]** > > > ## “SEC. 3783 Technical data: time for contractors to submit justifications > > **[**[10 U.S.C. 3783](/us/usc/t10/s3783)**]** > > > ## “SEC. 3784 Technical data under contracts for commercial items: presumption of development exclusively at private expense > > **[**[10 U.S.C. 3784](/us/usc/t10/s3784)**]** > > > ## “SEC. 3785 Technical data: decision by contracting officer; claims; rights and liability upon final disposition > > **[**[10 U.S.C. 3785](/us/usc/t10/s3785)**]** > > > ## “SEC. 3786 Use or release restriction: definition” > > **[**[10 U.S.C. 3786](/us/usc/t10/s3786)**]** > . ###

(h)Transfer of Subsections (a), (b), and

(c)of Section 2321 ####

(1)Transfer Subsections (a), (b), and

(c)of section 2321 of title 10, United States Code, are transferred to section 3781 of such title, as added by subsection (g), and inserted after the section heading. ####

(2)Conforming amendments to new 3781(a) Subsection

(a)of such section, as so transferred, is amended by striking “Contracts Covered by Section.—This section” and inserting “Contracts Covered by Subchapter.—This subchapter”. ####

(3)Conforming amendments to new 3781(b) Subsection

(b)of such section, as so transferred, is amended— #####

(A)by striking “this section” and inserting “this subchapter”; and #####

(B)by striking “(as defined” and all that follows through “asserted” and inserting “(as defined in section 3786 of this title) asserted”. ####

(4)Conforming amendments to new 3781(c) Subsection

(c)of such section, as so transferred, is amended— #####

(A)by striking “ Restrictions.—(1) The Secretary ” and inserting > “ Restrictions.— > > > #### “(1) > > The Secretary” > ; #####

(B)in paragraph (1), by striking “this section” and inserting “this subchapter”; and #####

(C)by realigning paragraph

(2)2 ems to the right. ###

(i)Transfer of Subsection

(d)of Section 2321 ####

(1)Transfer Subsection

(d)of section 2321 of title 10, United States Code, is transferred to section 3782 of such title, as added by subsection (g), inserted after the section heading, and amended— #####

(A)by striking the subsection designation and subsection heading; and #####

(B)by redesignating paragraphs (1), (2), (3), and

(4)as subsections (a), (b), (c), and (d), respectively. ####

(2)Conforming amendments to new 3782(a) Subsection

(a)of such section 3782, as so transferred and redesignated, is amended— #####

(A)by inserting “Challenges by Secretary of Defense.—” before “The Secretary of Defense”; #####

(B)by striking “this section” and inserting “this subchapter”; and #####

(C)by redesignating subparagraphs

(A)and

(B)as paragraphs

(1)and (2), respectively. ####

(3)Conforming amendments to new 3782(b) Subsection

(b)of such section 3782, as so transferred and redesignated, is amended— #####

(A)by striking “

(A)A challenge ” and inserting > “ Time Limit for Challenges; Exceptions.— > > > #### “(1) > > A challenge” > ; #####

(B)by redesignating subparagraph

(B)as paragraph

(2)and realigning that paragraph 2 ems to the right; #####

(C)in paragraph (1), as designated by subparagraph (A)— ######

(i)by striking “paragraph (1)” and inserting “subsection (a)”; ######

(ii)by striking “subparagraph (B)” and inserting “paragraph (2)”; and ######

(iii)by redesignating clauses (i), (ii), (iii), and

(iv)as subparagraphs (A), (B), (C), and (D), respectively; and #####

(D)in paragraph (2), as redesignated by subparagraph (B)— ######

(i)by striking “subparagraph (A)” and inserting “paragraph (1)”; and ######

(ii)by redesignating clauses

(i)and

(ii)as subparagraphs

(A)and (B), respectively. ####

(4)Conforming amendments to new 3782(c) Subsection

(c)of such section 3782, as so transferred and redesignated, is amended— #####

(A)by inserting “Written Notice to Contractor or Subcontractor.—” before “If the Secretary”; #####

(B)by striking “paragraph (1)” and inserting “subsection (a)”; #####

(C)by redesignating subparagraphs (A), (B), and

(C)as paragraphs (1), (2), and (3), respectively; and #####

(D)in paragraph (3), as so redesignated, by striking “paragraph (4)” and inserting “subsection (d)”. ####

(5)Conforming amendments to new 3782(d) Subsection

(d)of such section 3782, as so transferred and redesignated, is amended— #####

(A)by inserting “Justification.—” before “It is a justification”; #####

(B)by striking “paragraph (1)” and inserting “subsection (a)”; #####

(C)by redesignating subparagraphs

(A)and

(B)as paragraphs

(1)and (2), respectively; and #####

(D)in paragraph (1), as so redesignated, by striking “this subsection” and inserting “this section”. ###

(j)Transfer of Subsection

(e)of Section 2321 ####

(1)Transfer Subsection

(e)of section 2321 of title 10, United States Code, is transferred to section 3783 of such title, as added by subsection (g), inserted after the section heading, and amended by striking the subsection designation and subsection heading. ####

(2)Designation of new subsections

(a)and

(b)Such section, as so transferred and amended, is further amended— #####

(A)by designating the first sentence as subsection

(a)and inserting “Additional Time to Submit Justifications.—” before “If a contractor”; and #####

(B)by designating the second sentence as subsection

(b)and inserting “Multiple Challenges; Schedule of Responses.—” before “If a party”. ###

(k)Transfer of Subsection

(f)of Section 2321 Subsection

(f)of section 2321 of title 10, United States Code, is transferred to section 3784 of such title, as added by subsection (g), inserted after the section heading, and amended— ####

(1)by striking the subsection designation and subsection heading; and ####

(2)by striking “subsection (d)(3)” and inserting “section 3782(c) of this title”. ###

(l)Transfer of Subsections (g), (h), and

(i)of Section 2321 ####

(1)Transfer Subsections (g), (h), and

(i)of section 2321 of title 10, United States Code, are transferred to section 3785 of such title, as added by subsection (g), inserted after the section heading, and redesignated as subsections (a), (b), and (c), respectively. ####

(2)Conforming amendments to new 3785(a) Subsection

(a)of such section, as so transferred and redesignated, is amended— #####

(A)by striking “subsection (d)(3)” both places it appears and inserting “section 3782(c) of this title”; #####

(B)by striking “ Officer.—(1) Upon failure ” and inserting > “ Officer.— > > > #### “(1) > > Upon failure” > ; and #####

(C)by realigning paragraph

(2)2 ems to the right. ####

(3)Conforming amendments to new 3785(c) Subsection

(c)of such section 3786, as so transferred and redesignated, is amended— #####

(A)by striking “ Disposition.—(1) If, upon final ” and inserting > “ Disposition.— > > > #### “(1) > > If, upon final” > ; and #####

(B)by realigning paragraph

(2)2 ems to the right. ###

(m)Transfer of Subsection

(j)of Section 2321 Subsection

(j)of section 2321 of title 10, United States Code, is transferred to section 3786 of such title, as added by subsection (g), inserted after the section heading, and amended— ####

(1)by striking the subsection designation and subsection heading; and ####

(2)by striking “In this section” and inserting “In this subchapter”. ###

(n)New Subchapter Chapter 275 of title 10, United States Code, as added by subsection (a), is amended by adding after subchapter II, as added by subsections (g), the following new subchapter: > > ### “Subchapter III OTHER PROVISIONS RELATING TO PROPRIETARY CONTRACTOR DATA AND RIGHTS IN TECHNICAL DATA > > **[**[10 U.S.C. 3791](/us/usc/t10/s3791)**]** > > > ## “SEC. 3791 Management of intellectual property matters within the department of defense9 > > **[**[10 U.S.C. 3791](/us/usc/t10/s3791)**]** > > > ### “(b) Cadre of Intellectual Property Experts > > For a provision requiring establishment of a cadre of personnel who are experts in intellectual property matters, see section 1707 of this title.” > . 9Section 1701(b)(12)(A) of division A of Public Law 117–81 provides for an amendment to the section heading for section 3791. Such amendment does not appear to change language including the formatting for the matter being struck and inserted are identical. ###

(o)Transfers ####

(1)Transfer of section 2322(a) Subsection

(a)of section 2322 of title 10, United States Code, is transferred to section 3791 of such title, as added by subsection (n), and inserted after the section heading. ####

(2)Transfer of sections 2386 and 2328 Sections 2386 and 2328 of such title are transferred to subchapter III of chapter 275 of such title, as added by subsection (n), inserted (in that order) after section 3791, and redesignated as sections 3793 and 3794, respectively. ###

(p)Cross Reference Amendments Section 8687(a) of title 10, United States Code, is amended by striking “section 2320” each place it appears and inserting “subchapter I of chapter 275”.

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