1. Export Controls and University Research Grainne Martin Senior Associate Counsel Office of the General Counsel

2. Legal Basis for Export Controls Export Administration Act of 1969  Export Administration Regulations (EAR)  15 CFR §§730-774  Department of Commerce  Dual use items

3. Legal Basis for Export Controls Arms Export Control Act of 1976  International Traffic in Arms Regulations (ITAR)  22 CFR §§120-130  Department of State  Defense articles, defense services, related technical data (inherently military in nature)  More complex, restrictive, ambiguous than EAR; definitions of some key terms arguably internally inconsistent

4. Applicability Nature of the goods, technology, data (actual or potential issues for economic protections or military applications) Destination (country, organization, individual) Intended or suspected end use or end user

5. EAR Goods and related technology listed on Commerce Control List (CCL, 15 CFR §774, Supp.1) 10 categories: license required  Nuclear materials; chemicals, microorganisms, toxins; electronics; computers; telecommunications; lasers and sensors; avionics; marine; propulsion systems

6. EAR 99 Additional “catch-all” category  Goods/technology “subject to the EAR” as defined in 15 CFR §734.3(a) but not on the CCL  May or may not require license, depending on destination (country, individual)

7. ITAR Defense articles, defense services, related technical data on US Munitions List (USML) at 22 CFR §121 Inherently military in nature (designed to kill/defend against death in military situation) 21 categories: requires license Includes weapons, chemical and biological agents, vehicles, missiles, equipment, all satellites

8. Background Early 1980s: Government began to apply export controls to defense articles used in university research Involvement of higher education community Result: NSDD 189 (1985)

9. NSDD 189 Defined “fundamental research”  Basic and applied research in science and engineering  The results of which ordinarily are published and shared broadly within the scientific community

10. NSDD 189 Distinguished:  fundamental research  research which results in information which is restricted for proprietary reasons or pursuant to specific US government access and dissemination controls

11. NSDD 189 University research does not qualify as “fundamental research” if:  University accepts restrictions on publication of research results (temporary prepublication review allowed for proprietary/patent purposes)  University accepts specific access and dissemination controls in federally-funded research

12. NSDD 189 Affirmed government policy that the only appropriate mechanism for controlling “fundamental research” is by national security classification

13. Background Two recent events since issuance of NSDD 189 have raised export control issues again for universities  1999 Congress transfers jurisdiction for all satellites (including research satellites) to Dept of State/ITAR  9/11: heightened concerns about national security, stricter interpretation of export control regulations

14. Since 9/11 November 2001: Bush administration reaffirms that NSDD 189 remains in effect Efforts by higher education community to remove university research from scope of export control regulations Increasing applicability to university research Recent audits of several university research programs

15. The problem for university research Expansive definition of “export”  Transfer/disclosure outside US to any person (including US citizen abroad)  Transfer/disclosure in any form (verbal, written, electronic, visual) within US to anyone not a US citizen or permanent resident (green card holder) (“deemed export”)  NOTE: ITAR includes defense services

16. Significance of deemed export rule If export controls apply and license is required  And no exemption is available  Have to obtain license before export- controlled item/information can be shared abroad or on US campus with foreign national participating in the research  Where certain countries involved, no license available at all

17. Other examples of restrictions on university research Conferences where previously unpublished research will be presented: who can participate, co-sponsor Meetings where unpublished research will be discussed Teaching foreign collaborators how to use items in research (“defense service”) Transfers of research equipment abroad

18. Other issues for universities Expansion of ITAR jurisdiction to include research satellites and related technology/data (see next slide) Increasing application of ITAR to the life sciences MTAs (issues for application of fundamental research exemption)

19. 2002 ITAR amendment Provides exemption to US universities for certain spacecraft systems fabricated solely for research purposes, IF:  Exports are restricted to universities/research institutions in NATO or other US-allied countries, and  All the information is in the public domain (as defined by 22 CFR §120.11)

20. Effect of 2002 ITAR amendment Does not expand the scope of existing fundamental research exemption under ITAR, since public domain information already outside scope of ITAR Appears to require license for information in the public domain (outside scope of ITAR) for exports to countries outside “NATO or US allies” category Not reliable authority for proceeding without license in area of satellite research

21. Exclusions/exemptions Public domain (ITAR)/publicly available (EAR) Fundamental research Bona fide/full time regular employees (ITAR) Educational instruction

22. Exclusion for public domain/publicly available ITAR definition of public domain: information which is published and generally accessible to the public through (among other things) fundamental research EAR: publicly available technology and software outside scope of controls

23. Public domain/publicly available: exclusion inapplicable To equipment or encrypted software If reason to believe information will be used for WMD Where US government has imposed access and dissemination controls as condition of funding (at least under ITAR)

24. Exclusion for fundamental research EAR 15 CFR §734.8  Basic and applied research in science and engineering, where the resulting information is ordinarily published and shared broadly within the scientific community  Distinguished from proprietary research and industrial development, the results of which ordinarily are restricted for proprietary reasons or specific national security reasons

25. Fundamental research ITAR 22 CFR §120.11  Public domain: information which is published and which is generally accessible to the public  Through fundamental research; basic and applied research in science and engineering at accredited institutions of higher education in the US where the resulting information is ordinarily published and shared broadly in the scientific community

26. Fundamental research Common elements in ITAR/EAR Excludes from export controls the disclosure to foreign nationals of information resulting from fundamental research Exclusion is lost where university accepts restrictions on publication of results or participation by foreign nationals in research Exclusion inapplicable to sponsor’s existing proprietary information Applies only to transfer/disclosure of information (not to physical objects or defense services)

27. Fundamental research exclusion, common elements (con’t) Applies only to disclosures in the US at accredited institutions of higher learning Foreign national: non-US citizen or lawful permanent resident

28. Fundamental research exclusion ITAR/EAR compared ITAR: applies to information “which is published” and generally accessible/available to public EAR: applies to information “which is publicly available”

29. Fundamental research exclusion ITAR/EAR compared EAR: exclusion not lost where university accepts temporary publication delay for prepublication review for proprietary/patent purposes ITAR: does not contain this language, so ambiguity as to whether this safe haven is available

30. Fundamental research exclusion ITAR/EAR compared EAR: exclusion not lost in federally- funded project where university accepts specific national security controls, so long as controls are not violated in exporting the controlled information ITAR: exclusion lost in federally-funded project where such controls are accepted

31. Exemption for bona fide full-time employees (ITAR) Disclosures in the US by US universities of unclassified technical data to foreign nationals who are  University’s bona fide and full-time regular employees  Employee’s permanent abode throughout period of employment is in US  Employee not national of embargoed country  University informs employee in writing data may not be transferred to other foreign nationals without government approval

32. ITAR employee exemption: limitations Visa restrictions may require holder to maintain foreign residence Researcher may not have full-time employee status (students, some post- docs)

33. Exclusion for educational instruction No license needed for classroom/lab teaching of foreign nationals in US universities  EAR: so long as the information is in the public domain  ITAR: specifically removes from definition of “technical data” “information concerning general scientific, mathematical, or engineering principles commonly taught in schools, colleges, and universities, or information in the public domain

34. Sanctions for noncompliance EAR  Criminal: up to $1M fine or 5x value of export, whichever larger, per violation; up to 10 years  Civil: up to $120K per violation, loss of export privileges ITAR  Criminal: up to $1M per violation, up to 10 years  Civil: up to $500K per violation, loss of export privileges, seizure of item