[Code of Federal Regulations]
[Title 15, Volume 2]
[Revised as of January 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 15CFR740.13]

[Page 271-272]
 
                  TITLE 15--COMMERCE AND FOREIGN TRADE
 
  CHAPTER VII--BUREAU OF EXPORT ADMINISTRATION, DEPARTMENT OF COMMERCE
 
PART 740--LICENSE EXCEPTIONS--Table of Contents
 
Sec. 740.13  Technology and software--unrestricted (TSU)

    This license exception authorizes exports and reexports of operation 
technology and software; sales technology and software; software updates 
(bug fixes); ``mass market'' software subject to the General Software 
Note; and unrestricted encryption source code. Note that encryption 
software is not subject to the General Software Note (see paragraph 
(d)(2) of this section).
    (a) Operation technology and software--(1) Scope. The provisions of 
paragraph (a) permit exports and reexports of operation technology and 
software. ``Operation technology'' is the minimum technology necessary 
for the installation, operation, maintenance (checking), and repair of 
those products that are lawfully exported or reexported under a license, 
a License Exception, or NLR. The ``minimum necessary'' operation 
technology does not include technology for development or production and 
includes use technology only to the extent required to ensure safe and 
efficient use of the product. Individual entries in the software and 
technology subcategories of the CCL may further restrict the export or 
reexport of operation technology.
    (2) Provisions and destinations--(i) Provisions. Operation software 
may be exported or reexported provided that both of the following 
conditions are met:
    (A) The operation software is the minimum necessary to operate 
equipment authorized for export or reexport; and
    (B) The operation software is in object code.
    (ii) Destinations. Operation software and technology may be exported 
or reexported to any destination to which the equipment for which it is 
required has been or is being legally exported or reexported.
    (b) Sales technology--(1) Scope. The provisions of paragraph (b) 
authorize exports and reexports of sales technology. ``Sales 
technology'' is data supporting a prospective or actual quotation, bid, 
or offer to sell, lease, or otherwise supply any item.
    (2) Provisions and destinations--(i) Provisions. Sales technology 
may be exported or reexported provided that:
    (A) The technology is a type customarily transmitted with a 
prospective or actual quotation, bid, or offer in accordance with 
established business practice; and
    (B) Neither the export nor the reexport will disclose the detailed 
design, production, or manufacture technology, or the means of 
reconstruction, of either the quoted item or its product. The purpose of 
this limitation is to prevent disclosure of technology so detailed that 
the consignee could reduce the technology to production.
    (ii) Destinations. Sales technology may be exported or reexported to 
any destination.

    Note: Neither this section nor its use means that the U.S. 
Government intends, or is committed, to approve a license application 
for any commodity, plant, software, or technology that may be the 
subject of the transaction to which such quotation, bid, or offer 
relates. Exporters are advised to include in any quotations, bids, or 
offers, and in any contracts entered into pursuant to such quotations, 
bids, or offers, a provision relieving themselves of liability in the 
event that a license (when required) is not approved by the Bureau of 
Export Administration.

    (c) Software updates. The provisions of paragraph (c) authorize 
exports and reexports of software updates that are intended for and are 
limited to correction of errors (``fixes'' to ``bugs'') in

[[Page 272]]

software lawfully exported or reexported (original software). Such 
software updates may be exported or reexported only to the same 
consignee to whom the original software was exported or reexported, and 
such software updates may not enhance the functional capacities of the 
original software. Such software updates may be exported or reexported 
to any destination to which the software for which they are required has 
been legally exported or reexported.
    (d) General Software Note: ``mass market'' software--(1) Scope. The 
provisions of paragraph (d) authorize exports and reexports of ``mass 
market'' software subject to the General Software Note (see Supplement 
No. 2 to part 774 of the EAR; also referenced in this section).
    (2) Software not eligible for this license exception. This license 
exception is not available for certain encryption software controlled 
under ECCN 5D002. (Refer to the Cryptography Note in Category 5--Part 2 
of the Commerce Control List for information on Mass Market Encryption 
commodities and software. Also refer to Secs. 742.15(b)(1) and 748.3(b) 
of the EAR for information on item classifications for release from 
``EI'' controls and ``NS'' controls).
    (3) Provisions and destinations--
    (i) Destinations. ``Mass market'' software is available to all 
destinations except destinations in Country Group E:1 (see Supplement 
No. 1 to this part).
    (ii) Provisions. ``Mass market'' treatment is available for software 
that is generally available to the public by being:
    (A) Sold from stock at retail selling points, without restriction, 
by means of:
    (1) Over the counter transactions;
    (2) Mail order transactions; or
    (3) Telephone call transactions; and
    (B) Designed for installation by the user without further 
substantial support by the supplier.
    (e) Unrestricted encryption source code. (1) Encryption source code 
controlled under ECCN 5D002, which would be considered publicly 
available under Sec. 734.3(b)(3) of the EAR and which is not subject to 
an express agreement for the payment of a licensing fee or royalty for 
commercial production or sale of any product developed with the source 
code is released from EI controls and may be exported or reexported 
without review under License Exception TSU, provided you have submitted 
written notification to BXA of the Internet location (e.g., URL or 
Internet address) or a copy of the source code by the time of export. 
Send the notification to BXA at crypt@bxa.doc.gov with a copy to ENC 
Encryption Request Coordinator, or see Sec. 740.17(e)(5) for the mailing 
addresses. Intellectual property protection (e.g., copyright, patent or 
trademark) will not, by itself, be construed as an express agreement for 
the payment of a licensing fee or royalty for commercial production or 
sale of any product developed using the source code.
    (2) Object code resulting from the compiling of source code which 
would be considered publicly available can be exported under TSU if the 
requirements of this section are otherwise met and no fee or payment 
(other than reasonable and customary fees for reproduction and 
distribution) is required for the object code. See Sec. 740.17(b)(4)(i) 
for the treatment of object code where a fee or payment is required.
    (3) You may not knowingly export or reexport source code or products 
developed with this source code to Cuba, Iran, Iraq, Libya, North Korea, 
Sudan or Syria.
    (4) Posting of the source code or corresponding object code on the 
Internet (e.g., FTP or World Wide Web site) where it may be downloaded 
by anyone would not establish ``knowledge'' of a prohibited export or 
reexport, including that described in paragraph (e)(2) of this section. 
In addition, such posting would not trigger ``red flags'' necessitating 
the affirmative duty to inquire under the ``Know Your Customer'' 
guidance provided in Supplement No. 3 to part 732 of the EAR.

[61 FR 64283, Dec. 4, 1996, as amended at 61 FR 65464, Dec. 13, 1996. 
Redesignated at 61 FR 68579, Dec. 30, 1996, as amended at 61 FR 68580, 
Dec. 30, 1996; 62 FR 25458, May 9, 1997; 65 FR 2496, Jan. 14, 2000; 65 
FR 62604, Oct. 19, 2000; 66 FR 42110, Aug. 10, 2001]