MIL-HDBK-115 Us Army Reverse Engineering Handbook Guidelines And ProceduresThis HANDBOOK, which provides the guidelines and procedures for performing reverse engineering, was created using current applicable laws and knowledge gained during a trial program from July 1985 to April 1987, and is based on experiences obtained from military and industry participants. This handbook is for guidance only and cannot be cited as a requirement.

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MIL-HDBK-115B(ARMY) APPENDIX B

B.2.1.7 Trade secret. This is any formula, pattern, device, or compilation of information, which is used in one's business, and which gives him an opportunity to obtain an advantage over competitors who do not know or use it. It may be a formula for a chemical compound, a process of manufacturing, treating or preserving materials, a pattern for a machine or other devices, or a list of customers. Trade secrets are protected property unless acquired by proper means. Proper means include:

a. Discovery by independent invention;

b. Discovery by "reverse engineering," that is, by starting with the known product and working backward to find the method by which it was developed. The acquisition of the known product must, of course, also be by fair and honest means, such as purchase of the item on the open market, for reverse engineering to be lawful;

c. Discovery under a license from the owner of the trade secret;

d. Observation of the item in public use or on public display; and e. Obtaining the trade secret from published literature.

B.2.1.8 Predetermination/prenotification of rights.. This procedure allows for a predetermination of both limited and unlimited rights, to be used in cases where the parties can avoid later disputes by agreeing on their rights before contract performance. This should only be used when the rights in data can be "practically identified." The procedure may be initiated by the Contracting Officer or the contractor during the negotiation of a contract and is not mandatory.

B.2.1.9 Specific acquisition. This term applies when the Government purchases the rights from the developer of the item and uses the data as the basis for competitive procurement. These purchases are included as a separate line item in a contract with a separate price and require that such rights should not be acquired unless:

a. There is a clear need to reprocure the item;

b. There is no suitable alternative;

c. The item can be manufactured through the use of the technical data by the competent vendors; and

d. The anticipated net savings will exceed the acquisition cost of the technical data and rights therein.

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