News from Reeves & Dola, LLP 
*** R|D ALERT ***

HOW THE ITAR AND EAR TREAT
INFORMATION IN THE PUBLIC DOMAIN

Soon the U.S. Government is expected to publish final rules to remove most firearms and ammunition from U.S. Department of State export controls under the  International Traffic in Arms Regulations  (ITAR) (22 C.F.R. Parts 120-130) and over to the U.S. Department of Commerce export controls under the Export Administration Regulations (EAR) (15 C.F.R. Parts 730-774). To prepare for the change in regulatory landscape, businesses impacted by the transition should familiarize themselves with some new vocabulary, as the ITAR and EAR contain some very important distinctions. Over the next several weeks, we will issue a series of Alerts highlighting some of the key differences between the two sets of regulations.
 
One major point of diversion is how the ITAR and the EAR control information, or more specifically, the limits of said controls. As many already know, certain information that is widely available to the public is not necessarily restricted for export. The ITAR uses the phrase "public domain" as a defined term to identify information not subject to the ITAR. Conversely, the EAR refers to such information as "not subject to the EAR," and requires a careful review of several sub-paragraphs in the regulations to determine whether the EAR applies. 

To illustrate, let's look at information posted to the Internet. Under the ITAR, controlled technical data is not automatically removed from ITAR licensing by posting it to the Internet because the Internet is not considered to be "public domain." Under the EAR, however, information is considered "published" as soon as it is posted to the Internet and therefore is "not subject to the EAR."
 
The table below shows the respective regulatory definitions side-by-side, to illustrate how the ITAR and EAR each carve out publicly available information from the respective controls.  As you will see, the scope of the ITAR definition is more narrowly constructed, thereby capturing more types of information controlled as related to defense articles.

ITAR
EAR
" Public Domain
"
22 C.F.R. § 120.11

Information which is published and which is generally accessible or available to the public:
 
(1) Through sales at newsstands and bookstores;
 
(2) Through subscriptions which are available without restriction to any individual who desires to obtain or purchase the published information;
 
(3) Through second class mailing privileges granted by the U.S. Government;
 
(4) At libraries open to the public or from which the public can obtain documents;
 
(5) Through patents available at any patent office;
 
(6) Through unlimited distribution at a conference, meeting, seminar, trade show or exhibition, generally accessible to the public, in the United States;
 
(7) Through public release (i.e., unlimited distribution) in any form (e.g., not necessarily in published form) after approval by the cognizant U.S. government department or agency (see also 22 C.F.R. §125.4(b)(13));
 
(8) Through fundamental research in science and engineering at accredited institutions of higher learning in the U.S. where the resulting information is ordinarily published and shared broadly in the scientific community. Fundamental research is defined to mean basic and applied research in science and engineering where the resulting information is ordinarily published and shared broadly within the scientific community, as distinguished from research the results of which are restricted for proprietary reasons or specific U.S. Government access and dissemination controls. University research will not be considered fundamental research if:
 
(i) The University or its researchers accept other restrictions on publication of scientific and technical information resulting from the project or activity, or
 
(ii) The research is funded by the U.S. Government and specific access and dissemination controls protecting information resulting from the research are applicable.

" Not subject to the EAR "
15 C.F.R. § 734.3(b)
 
The following items are "not subject to the EAR":
 
(1) Items that are exclusively controlled for export or reexport by the following departments and agencies of the U.S. Government which regulate exports or reexports for national security or foreign policy purposes [see list in § 734.3(b)(1)];
 
(2) Prerecorded phonograph records reproducing in whole or in part, the content of printed books, pamphlets, and miscellaneous publications, including newspapers and periodicals; printed books, pamphlets, and miscellaneous publications including bound newspapers and periodicals; children's picture and painting books; newspaper and periodicals, unbound, excluding waste; music books; sheet music; calendars and calendar blocks, paper; maps, hydrographical charts, atlases, gazetteers, globe covers, and globes (terrestrial and celestial); exposed and developed microfilm reproducing, in whole or in part, the content of any of the above; exposed and developed motion picture film and soundtrack; and advertising printed matter exclusively related thereto.
 
(3) Information and "software" that:
 
(i) Are published, as described in § 734.7 [See definition below];
 
(ii) Arise during, or result from, fundamental research, as described in § 734.8;
 
(iii) Are released by instruction in a catalog course or associated teaching laboratory of an academic institution;
 
(iv) Appear in patents or open (published) patent applications available from or at any patent office, unless covered by an invention secrecy order, or are otherwise patent information as described in § 734.10;
 
(v) Are non-proprietary system descriptions; or
 
(vi) Are telemetry data as defined in Note 2 to Category 9, Product Group E (see Supplement No. 1 to part 774 of the EAR).
 
NOTE TO PARAGRAPHS (b)(2) AND (b)(3): A printed book or other printed material setting forth encryption source code is not itself subject to the EAR (see § 734.3(b)(2)). However, notwithstanding § 734.3(b)(2), encryption source code in electronic form or media (e.g., computer diskette or CD ROM) remains subject to the EAR (see § 734.17)). Publicly available encryption object code "software" classified under ECCN 5D002 is not subject to the EAR when the corresponding source code meets the criteria specified in § 742.15(b) of the EAR.
 
NOTE TO PARAGRAPH (b)(3): Except as set forth in part 760 of this title, information that is not within the scope of the definition of "technology" (see § 772.1 of the EAR) is not subject to the EAR.
 
"Published"
15 C.F.R. § 734.7
 
(a) Except as set forth in § 734.7(b) of this section, unclassified "technology" or "software" is "published," and is thus not "technology" or "software" subject to the EAR, when it has been made available to the public without restrictions upon its further dissemination such as through any of the following:
 
(1) Subscriptions available without restriction to any individual who desires to obtain or purchase the published information;
 
(2) Libraries or other public collections that are open and available to the public, and from which the public can obtain tangible or intangible documents;
 
(3) Unlimited distribution at a conference, meeting, seminar, trade show, or exhibition, generally accessible to the interested public;
 
(4) Public dissemination (i.e., unlimited distribution) in any form (e.g., not necessarily in published form), including posting on the Internet on sites available to the public; or
 
(5) Submission of a written composition, manuscript, presentation, computer-readable dataset, formula, imagery, algorithms, or some other representation of knowledge with the intention that such information will be made publicly available if accepted for publication or presentation:
 
(i) To domestic or foreign co-authors, editors, or reviewers of journals, magazines, newspapers or trade publications;
 
(ii) To researchers conducting fundamental research; or
 
(iii) To organizers of open conferences or other open gatherings.
 
(b) Published encryption software classified under ECCN 5D002 remains subject to the EAR unless it is publicly available encryption object code software classified under ECCN 5D002 and the corresponding source code meets the criteria specified in §742.15(b) of the EAR.

Stay tuned for an upcoming alert that delves into the differences between other key terms in the ITAR and EAR.


The above alert is for informational purposes only and is not intended to be construed or used as legal advice. Receipt of this alert does not establish an attorney-client relationship.     

Questions about this alert may be directed to: 

Katherine Heubert : 202.715.9940  [email protected]

About Reeves & Dola

Reeves & Dola is a Washington, DC law firm that specializes in helping clients navigate the highly regulated and complex world of manufacturing, sales and international trade of defense and commercial products. We have a deep understanding of the Federal regulatory process, and use our expertise in working with a variety of Federal agencies to assist our clients with their transactional and regulatory needs.

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