Event: Intellectual property in defense contracts

In this special episode of the Acquisition Talk podcast, we listen in to a great conversation on intellectual property in defense. The panel is moderated by my colleague Jim Hasik (who, by the way, has a great blog) and features Richard Gray (the DoD's IP chief), Shay Assad (former DoD pricing chief), Kelly Kyes (Boeing), and Bill Elkington (former IP director at Collins Aerospace). There were tons of great insights throughout, including: What causes companies to "buy-in" on production Whether there is a level playing field for commercial and defense contractors The difference between OMIT and DMPD data How the DoD is moving to negotiate specially tailored deals early Whether government should get IP rights for a modified commercial product The conversation is teed off by Jim's third IP white paper where he looked at the effects of IP rights on the prices of military trucks using a natural experiment. The Army bought the IP rights to the FMTV cargo truck while the Marines did not buy the IP rights for their equivalent MTVR. When they came up on follow-on procurement contracts, both services saw price increases roughly 20 percent, despite the fact the Army bought the IP rights. Jim has a good bit to say about that and more nuance in the paper. There were tons of great discussions, but one that caught my ear was the difference between IP rights related to defense and commercial contractors. Shay Assad argued that defense contractors have their independent R&D costs reimbursed by government, which puts them on an uneven playing field with commercial companies who funded R&D our of their gross profits. That dichotomy in risk should have consequences on pricing and on IP rights. Kelly Kyes argued that defense IR&D doesn't have commercial applications, so needs riskless reimbursement, and in the case of Other Transactions contracts, it waives the necessity of cost-sharing requirements for nontraditional contractors. This podcast was produced by Eric Lofgren. Soundtrack by urmymuse: "reflections of u". You can follow us on Twitter @AcqTalk and find more information at AcquisitionTalk.com.