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Ignorance of The Law

Client Alert | 1 min read | 11.11.09

In what, fortunately, is not a precedential decision, in Teknowledge Corp. v. U.S. (Nov. 3, 2009), the Federal Circuit finds that the cost of software development effort is not allocable to Government business because there is no demonstrated "benefit" to the Government. While it is not clear, based on the facts reported in the decision, that the result would be different -- and as we have reported in a prior Bullet Point about the decision of the Court of Federal Claims in the same case -- neither party apparently pointed out to either court that FAR incorporates the requirements of CAS 420, which specifically addresses the allocation issue in the case and requires a different analysis than the "benefit to the Government" rationale that the courts applied.

Insights

Client Alert | 8 min read | 10.01.25

BIS Issues “Affiliates Rule” to Dramatically Expand Applicability of Entity and Military End-User Lists

On September 29, 2025, the U.S. Department of Commerce Bureau of Industry and Security (BIS) announced a sweeping Interim Final Rule (IFR), (the “Affiliates Rule”) expanding which entities qualify as Entity List or Military End-User entities, thereby subjecting those entities to elevated export control restrictions under the Export Administration Regulations (EAR). U.S. export restrictions applicable to entities on the Entity List, Military End-User (MEU) List, and Specially Designated Nationals and Blocked Persons (SDN List) now apply to foreign affiliates that are, in the aggregate, owned 50% or more by one or more of the aforementioned entities. An entity that becomes subject to these restrictions because of its ownership structure will be subject to the most restrictive controls that attach to any of its parent entities, regardless of ownership stakes....