(a) If a performance contract provision requires the local authority to acquire a good through a subcontract, then the performance contract provision must identify the local authority or DSHS as the owner of the good.
(b) If a performance contract provision requires the local authority to subcontract with a business entity to develop or create intellectual property (e.g., computer software), then the performance contract provision must state the requirements to be included in the subcontract that relate to:
  (1) ownership of the intellectual property;
  (2) DSHS's and/or the local authority's right to use, modify, reproduce, or disseminate the intellectual property to others; and
  (3) indemnity of the local authority and DSHS should the subcontractor violate the intellectual property rights of a third party.

Source Note: The provisions of this §392.409 adopted to be effective June 17, 2015, 40 TexReg 3638