Data rights define the license the government acquires in technical data and computer software delivered under a contract. The categories vary by funding source and prior development. Unlimited Rights apply to data developed exclusively at government expense, allowing the government to use, modify, reproduce, and distribute the data without restriction. Government Purpose Rights apply to mixed-funded data, allowing government use with a typical five-year non-commercial-use restriction before converting to unlimited rights. Limited Rights apply to data developed exclusively at private expense, restricting government use and disclosure. Restricted Rights apply to commercial computer software, limiting copying and distribution.
The DFARS framework at Subpart 227.71 and the FAR equivalent at Subpart 27.4 govern the assertion process. Contractors must assert restrictions at proposal submission using the format prescribed in DFARS 252.227-7017 — identifying the data items, the rights category, and the basis for the assertion. The contracting officer can challenge the assertion under DFARS 252.227-7037, requiring the contractor to substantiate the development funding history. Failure to properly assert restrictions at proposal can result in unintentionally granting unlimited rights to privately developed data.
For small contractors with proprietary technology, data rights discipline starts before any federal contract is signed. Maintaining clear development funding records — internal R&D versus government-funded versus mixed — preserves the ability to assert appropriate restrictions on later contracts. The asserted-rights record is the protection; undocumented development funding history is functionally equivalent to no protection.