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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle A--Acquisition Policy and Management

P. L. 115-

House Conference Report. 115-404

SEC. 802. MANAGEMENT OF INTELLECTUAL PROPERTY MATTERS WITHIN THE
DEPARTMENT OF DEFENSE.


(a) Management of Intellectual Property.--

(1) In general.--Chapter 137 of title 10, United States Code, is amended by inserting after section 2321 the following new section:

``Sec. 2322. Management of intellectual property matters within the
Department of Defense

``(a) Policy Required.--The Secretary of Defense, acting
through the Under Secretary of Defense for Acquisition and
Sustainment, shall develop policy on the acquisition or
licensing of intellectual property--

``(1) to enable coordination and consistency across
the military departments and the Department of Defense
in strategies for acquiring or licensing intellectual
property and communicating with industry;

``(2) to ensure that program managers are aware of
the rights afforded the Federal Government and
contractors in intellectual property and that program
managers fully consider and use all available
techniques and best practices for acquiring or
licensing intellectual property early in the
acquisition process; and

``(3) to encourage customized intellectual property
strategies for each system based on, at a minimum, the
unique characteristics of the system and its
components, the product support strategy for the
system, the organic industrial base strategy of the
military department concerned, and the commercial
market.

``(b) Cadre of Intellectual Property Experts.--(1) The
Secretary of Defense, acting through the Under Secretary of
Defense for Acquisition and Sustainment, shall establish a
cadre of personnel who are experts in intellectual property
matters. The purpose of the cadre is to ensure a consistent,
strategic, and highly knowledgeable approach to acquiring or
licensing intellectual property by providing expert advice,
assistance, and resources to the acquisition workforce on
intellectual property matters, including acquiring or licensing
intellectual property.

``(2) The Under Secretary shall establish an appropriate
leadership structure and office within which the cadre shall be
managed, and shall determine the appropriate official to whom
members of the cadre shall report.

``(3) The cadre of experts shall be assigned to a program
office or an acquisition command within a military department
to advise, assist, and provide resources to a program manager
or program executive officer on intellectual property matters
at various stages of the life cycle of a system. In performing
such duties, the experts shall--

``(A) interpret and provide counsel on laws,
regulations, and policies relating to intellectual
property;

``(B) advise and assist in the development of an
acquisition strategy, product support strategy, and
intellectual property strategy for a system;

``(C) conduct or assist with financial analysis and
valuation of intellectual property;

``(D) assist in the drafting of a solicitation,
contract, or other transaction;

``(E) interact with or assist in interactions with
contractors, including communications and negotiations
with contractors on solicitations and awards; and

``(F) conduct or assist with mediation if technical
data delivered pursuant to a contract is incomplete or
does not comply with the terms of agreements.

``(4)(A) In order to achieve the purpose set forth in
paragraph (1), the Under Secretary shall ensure the cadre has
the appropriate number of staff and such staff possesses the
necessary skills, knowledge, and experience to carry out the
duties under paragraph (2), including in relevant areas of law,
contracting, acquisition, logistics, engineering, financial
analysis, and valuation. The Under Secretary, in coordination
with the Defense Acquisition University and in consultation
with academia and industry, shall develop a career path,
including development opportunities, exchanges, talent
management programs, and training, for the cadre. The Under
Secretary may use existing authorities to staff the cadre,
including those in subparagraphs (B), (C), (D), and (F).

``(B) Civilian personnel from within the Office of the
Secretary of Defense, Joint Staff, military departments,
Defense Agencies, and combatant commands may be assigned to
serve as members of the cadre, upon request of the Director.

``(C) The Under Secretary may use the authorities for
highly qualified experts under section 9903 of title 5, to hire
experts as members of the cadre who are skilled professionals
in intellectual property and related matters.

``(D) The Under Secretary may enter into a contract with a
private-sector entity for specialized expertise to support the
cadre. Such entity may be considered a covered Government
support contractor, as defined in section 2320 of this title.

``(E) In establishing the cadre, the Under Secretary shall
give preference to civilian employees of the Department of
Defense, rather than members of the armed forces, to maintain
continuity in the cadre.

``(F) The Under Secretary is authorized to use amounts in
the Defense Acquisition Workforce Development Fund for the
purpose of recruitment, training, and retention of the cadre,
including paying salaries of newly hired members of the cadre
for up to three years.''.

(2) Clerical amendment.--The table of sections at
the beginning of such chapter is amended by adding at
the end the following new item:

``2322. Management of intellectual property matters within the
Department of Defense.''.

(b) Additional Acquisition Position.--Subsection 1721(b) of
title 10, United States Code, is amended by adding at the end
the following new paragraph:

``(12) Intellectual property.''.

Management of intellectual property matters within the Department of Defense (sec. 802)

The House bill contained a provision (sec. 813) that would create a small cadre of experts in intellectual property (IP) that would advise, assist, and provide resources to program offices as they develop their IP strategies and negotiate with industry. This provision would also establish a centralized Office of Intellectual Property within the Department of Defense to standardize the Department's approach toward obtaining technical data, promulgate policy on IP, oversee the cadre of IP experts, and serve as a single point of contact for industry on IP matters. Finally, this provision would add IP positions to the acquisition workforce and would revise the training provided to the acquisition workforce on IP matters.

The Senate amendment contained no similar provision.

The Senate recedes with an amendment that would require the Under Secretary of Defense for Acquisition and Sustainment to establish an appropriate organizational structure to support the cadre of intellectual property experts.

The conferees intend the Department of Defense to leverage the designation of the intellectual property workforce as part of the acquisition workforce to focus significant attention and resources on the development and professionalization of the workforce, for example by using resources from the Defense Acquisition Workforce Development Fund to expand access to training and educational opportunities.

The conferees expect the Under Secretary to foster communications with industry and designate a central point of contact within the Department of Defense for communications with contractors on intellectual property matters. As part of such communications, the Department of Defense shall regularly engage with appropriately representative entities, including large and small businesses, traditional and nontraditional Government contractors, prime contractors and subcontractors, and maintenance repair organizations.

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