DAU Lunch and Learn 27 Feb 2019 Presenters: Julie Pound, Tim Fouts, & Jim McEwen (Lockheed Martin Corp.) Intellectual Property & Data Rights: An Industry Perspective
DAU Lunch and Learn27 Feb 2019Presenters: Julie Pound, Tim Fouts, & Jim McEwen (Lockheed Martin Corp.)
Intellectual Property & Data Rights: An Industry Perspective
Agenda
• Introductions
• Background
• Approach
• Government & Industry Ongoing Collaboration
• Section 813 Panel Issues & Recommendations
• Future Opportunity
• Digital Transformation Strategy / Enablers
• Summary
Introductions
MODERATOR
Mr. Darren Rhyne
Professor of Systems Engineering Management
DAU Capital & Northeast Region
Engineering & Technology Department
IP & Data Rights: Industry PerspectiveDAU Lunch & Learn Webcast – 27 February 2019
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Julie PoundVice President
Corporate Business [email protected]
Industry Representatives
Tim FoutsDirector
Enterprise [email protected]
James McEwenAssistant General Counsel
Intellectual [email protected]
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Disclaimer
Non-attribution policy for presenters and audience
The views expressed in this seminar are the personal views of the presenters/authors, and are not the views of the presenters’/authors’ employers or former employers
IP & Data Rights: Industry PerspectiveDAU Lunch & Learn Webcast – 27 February 2019
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“Poor acquisition outcomes are forfeiting U.S. technology advantages & depriving the nation of
strategic capabilities…The acquisition system & culture must adapt to the reality that hardware & software
systems must change on a frequent basis to meet warfighter needs, adapting to the speed of relevance.”
General James MattisJanuary 2017
Ellen LordDecember 2018
“From an industry perspective, we are trying to be consistent across all the services and agencies, so that we don’t have different requirements for similar needs… We’d like to have the same kind of contract language that can be tailored to individual needs, but basically have consistent language.”
IP & Data Rights: Industry PerspectiveDAU Lunch & Learn Webcast – 27 February 2019
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Data Rights & Intellectual Property Dilemma
Increase operational flexibility, & interoperability
Reduce lifecycle cost
Assure readiness and cyber resilience
Eliminate Vendor Lock
Support system readiness & assure platform
effectiveness
Manage Supply Chain
Preserve Competitive Environment
A&D Industry PerspectiveCustomer Perspective
SHARED GOAL ASSURE OPERATORS,
SUSTAINERS & WARFIGHTERS
- GET WHAT THEY NEED- WHEN THEY NEED IT
- AT THE BEST TOTAL COST
Data Rights Intellectual Property
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Approach
• Shifting acquisition practices create uncertainty
• RFP Surprises
• Contracting disconnects
• Future degradation of competition across industry
Challenges
• Government/Industry Working Groups
• Bar Association
• Forums
Collaborative Actions
• Recognize opportunity provided by digital technology, MOSA, new operating CONOPS
• New methods needed to enable agile acquisition, contracting, business models and delivery mechanisms
Future Opportunity
IP & Data Rights: Industry PerspectiveDAU Lunch & Learn Webcast – 27 February 2019
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Collaborative Actions• Participating in Panels and Working Groups
• 813 Panel• Defense Innovation Board• Additive Manufacturing Working Group• Data Rights working groups at buying commands• OSD Digital Engineering Working Group
• Creating opportunities for Dialogue• AIA/NDIA Technical Data Rights Forum• American Bar Association PCL IP monthly calls
• Providing feedback on regulations and policies• Industry groups commenting on regulations, policies, guidebooks, and Panels (813 and 809)
• Aerospace Industries Association (AIA); National Defense Industrial Association (NDIA); Council of Defense and Space Industry Associations (CODSIA)
• Joint training sessions• DAU, American Bar Association (ABA), The Judge Advocate General's Legal Center and School (TJAGLCS),
District of Columbia Bar
IP & Data Rights: Industry PerspectiveDAU Lunch & Learn Webcast – 27 February 2019
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Sec. 813 Panel Recommendations on Path ForwardCharter
Panel composed of Government and Industry representatives
Required to “give appropriate consideration” to following factors:
1. DoD pays once
2. Contractors are appropriately rewarded for innovation
3. Cost-effective reprocurement, sustainment, modification, and upgrades
4. Encourage relevant private sector investment
5. DoD access to innovations developed by private sector for commercial use
6. DoD data rights necessary to support the modular open system architecture (added in FY2017 NDAA)
Section 813 of the FY2016
National Defense Authorization Act
(NDAA) directed the DOD to
establish an advisory panel for the
purpose of reviewing and offering
recommendations for how to
improve technical data rights
regulations and statutes.
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Sec. 813 Panel Report on Technical Data RightsLandscape
Recommendations based on testimony and organized in tension points for identified conflicts
• Between existing law/regulation, and a desired state
• Between Industry and Government
• Between Industry and Industry
• Component OEMs versus service repair and spares contractors
• Between contractors at different tiers of the supply chain
• Between Government and Government
• R&D versus Acquisition versus upgrades versus Sustainment
• Need for data versus needs for competition
IP & Data Rights: Industry PerspectiveDAU Lunch & Learn Webcast – 27 February 2019
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Sec. 813 Panel Report on Technical Data Rights
Issue Recommendations
Proper data acquisition – too much or too little
Engage with industry early and often to get proposals on how to meet objectives; integrate into IP Strategy
Need to connect and communicate sustainment
models
Provide lifecycle sustainment plans early in prototype stage soindustry can adjust investment profile and business models
Failure to negotiate SNLs or other agreements – GPR is
wrong answer
Even Limited Rights are good for organic support; if increased rights are needed, get SNL proposals.
Need guidance on appropriate IP valuation and evaluation
Need to know when a TDP ROM (now statutorily required) is reasonable using common lexicon – LES creating standard
Resulting report generated 30 tension papers submitted to OSD and Armed Services Committees for consideration
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Sec. 813 Panel Report on Technical Data Rights (cont.)
Issue Recommendations
Software maintenance needs policy and process
Need to incorporate business case analysis for software upgrades (i.e., maintenance); account for version control
Need more IP expertise Need people comfortable with negotiating (not purely lawyers)
Need new common definitions DIDs prevent paying twice; need new DIDs for MOSA/OSA
Local clauses driving costs H clauses drive tremendous cost into system; use DAR Case
Resulting report generated 30 tension papers submitted to OSD and Armed Services Committees for consideration
IP & Data Rights: Industry PerspectiveDAU Lunch & Learn Webcast – 27 February 2019
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Future Opportunity
• Define Needs – Evolve over time
• Recognize future technology enables transparency
• Development, Production and O&S
• Digital Transformation Enablers:
• Cognitive Solutions
• Human / Machine Solutions
• Material Solutions
• Model Based Solutions
• Enterprise Data Strategy
• Integrated Environment
• Transformative Computing
Create flexible delivery Mechanisms
• What is needed?
• Who needs it?
• When is it needed?
• Where is it needed?
• How urgent is it?
• What is the risk profile?
• How much does it cost?
IP & Data Rights: Industry PerspectiveDAU Lunch & Learn Webcast – 27 February 2019
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DoD Digital Transformation Strategy
• Transforms DoD contract data requirements list-based to model-based
• Guides detailed implementation for current development within the services
• Active industry participation in the OSD Digital Engineering Working Group
• Industry roadmaps and current investments must align to DoD strategic goals and focus areas
IP & Data Rights: Industry PerspectiveDAU Lunch & Learn Webcast – 27 February 2019
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Digital Transformation Enablers
Enterprise Data StrategyInfrastructure for cross-organization data exchange
Cognitive SolutionsRevolutionize product delivery with
intelligent systems
Human / Machine SolutionsDeploy manufacturing and sustainment
digital capabilities
Material SolutionsTransform Materials Innovations into New
Capabilities (i.e. Additive Manufacturing)
Model Based SolutionsMultidisciplinary integration enabling rapid
design: cost reduction, producibility, O&S optimization
Integrated EnvironmentMove Data Seamlessly Through the Lifecycle (i.e. Software Factory)
Transformative ComputingEmerging Computational Paradigms to Accelerate Solutions
IP & Data Rights: Industry PerspectiveDAU Lunch & Learn Webcast – 27 February 2019
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Technology Enabled Solution
Agile Acquisition Approach
New Contracting Mechanisms
Agile Business Models
New Delivery Mechanisms
A&D Industry PerspectiveCustomer PerspectiveData Rights Intellectual Property
Transparency
Speed
Readiness
CostTECHNOLOGY
AND IMPROVED CONOPS CAN BUILD THE BRIDGE
TO MEET OUR SHARED GOAL
IP & Data Rights: Industry PerspectiveDAU Lunch & Learn Webcast – 27 February 2019
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Summary
• Continued collaboration is essential - we are in this together
• Substantial progress has been made through government/industry working groups
• Leveraging new technology and improved CONOPS is key to solution
IP & Data Rights: Industry PerspectiveDAU Lunch & Learn Webcast – 27 February 2019
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19© 2019 Lockheed Martin Corporation
Questions & Answers