[Code of Federal Regulations]
[Title 32, Volume 2]
[Revised as of July 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 32CFR264.4]

[Page 606-607]
 
                       TITLE 32--NATIONAL DEFENSE
 
        CHAPTER I--OFFICE OF THE SECRETARY OF DEFENSE (CONTINUED)
 
PART 264_INTERNATIONAL INTERCHANGE OF PATENT RIGHTS AND TECHNICAL 
 
Sec. 264.4  Policy.

    It is the policy of the Department of Defense to encourage and 
facilitate international interchanges of patent rights and technical 
information to further the common defense of the United States and 
friendly nations. In achieving this purpose, the following principles 
shall be observed.
    (a) Classified military information shall be released only through 
Government channels and only when consistent with the National 
Disclosure Policy, or when approved as an exception to that policy.
    (b) In accordance with the Congressional policy prescribed by 
section 413(a) of the Mutual Security Act of 1954, as amended (22 U.S.C. 
1933(a)), and pursuant to the bilateral agreements referred to in Sec. 
264.3, commercial relationships shall be utilized whenever appropriate 
and to the maximum extent feasible in order to encourage the 
participation of private enterprise in the Mutual Security Program, to 
relieve the Department of Defense of administrative burdens, and to 
reduce the costs to the United States of such interchanges.
    (c) In accordance with section 414 of the Mutual Security Act of 
1954, as

[[Page 607]]

amended (22 U.S.C. 1934), the utilization of commercial channels for the 
exportation of unclassified privately owned technical information 
relating to articles designated as arms, ammunition, and implements of 
war in the United States Munitions List shall be subject to the 
regulations issued by the Secretary of State pursuant to section 414 of 
the Mutual Security Act of 1954, as amended (22 U.S.C. 1934) (Title 22 
CFR, chapter I, subchapter M). (The term ``technical data'' is used in 
those regulations to describe technical information relating to such 
articles).
    (d) Technical information which might be privately owned may be 
released under paragraph (e) (1) or (2) of this section by Department of 
Defense Agencies to foreign governments if any one of the following 
conditions are met:
    (1) The owner expressly consents to the proposed release;
    (2) The United States, by contract or otherwise, has acquired or is 
entitled to acquire, the information under circumstances which permit 
the proposed release; or
    (3) The Secretary of the Military Department concerned, or his 
designee, determines, under the authority of the Mutual Security Act of 
1954, as amended, that:
    (i) The exigencies of the requirement for release to further the 
common defense do not allow sufficient time to obtain the consent of the 
owner; or
    (ii) The owner refuses consent and the best interests of the United 
States would be served by the release.
    (e) In accordance with the provisions of the agreements referred to 
in Sec. 264.3, the release to foreign governments by Department of 
Defense agencies of technical information which might be privately owned 
shall normally be in accord with the following two step procedure:
    (1) Release for information only.
    (2) Permission for manufacture, or use, for defense purposes.
    (f)(1) All technical information, whether privately owned or 
government owned, released to a foreign government by Department of 
Defense Agencies shall be marked with the following restrictions:

    1. This information is accepted for defense purposes only.
    2. This information shall be accorded substantially the same degree 
of security protection as such information has in the United States.
    3. This information shall not be disclosed to another country 
without the consent of the United States.

    (2) When technical information which might be privately owned is 
released for information only, the restrictive marking shall also 
contain these additional notations:

    4. This information is accepted upon the understanding that it might 
be privately owned.
    5. This information is accepted solely for the purpose of 
information and shall accordingly be treated as disclosed in confidence. 
The recipient Government shall use its best endeavors to ensure that the 
information is not dealt with in any manner likely to prejudice the 
rights of the private owner thereof to obtain patent or other like 
statutory protection therefor.
    6. The recipient Government shall obtain the consent of the United 
States if it desires that this information be made available for 
manufacture, or use, for defense purposes.

    (g) When technical information which might be privately owned is 
released under the procedures set forth herein, the owner, if known, 
shall be furnished:
    (1) Notice of the release;
    (2) The identity of the recipient, if not contrary to security 
regulations;
    (3) Notice that the recipient has been advised that the information 
might be privately owned; and
    (4) Notice of the restrictions to which the release is subject.