-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 S8xsBW29PT+LNaXqN6tyQbfINsOeOcZeDGhZmjkFF/GtWjroj6xMU1hY+MO57uGK
 2fi8aYxEhUJ/xe2+i1WUlg==

<SEC-DOCUMENT>0001072613-07-000665.txt : 20070313
<SEC-HEADER>0001072613-07-000665.hdr.sgml : 20070313
<ACCEPTANCE-DATETIME>20070313170042
ACCESSION NUMBER:		0001072613-07-000665
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20070309
FILED AS OF DATE:		20070313
DATE AS OF CHANGE:		20070313

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DATAWATCH CORP
		CENTRAL INDEX KEY:			0000792130
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		IRS NUMBER:				020405716
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0930

	BUSINESS ADDRESS:	
		STREET 1:		271 MILL ROAD
		STREET 2:		QUORUM OFFICE PARK
		CITY:			CHELMSFORD
		STATE:			MA
		ZIP:			01824
		BUSINESS PHONE:		978-441-2200

	MAIL ADDRESS:	
		STREET 1:		271 MILL ROAD
		STREET 2:		QUORUM OFFICE PARK
		CITY:			CHELMSFORD
		STATE:			MA
		ZIP:			01824

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			OSBORNE RICHARD DE J
		CENTRAL INDEX KEY:			0001024388
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-19960
		FILM NUMBER:		07691222

	BUSINESS ADDRESS:	
		STREET 1:		P O BOX 1208
		CITY:			BIRMINGHAM
		STATE:			AL
		ZIP:			2059701208
		BUSINESS PHONE:		35201-1208

	MAIL ADDRESS:	
		STREET 1:		40 EAST 94TH STREET
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10128
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>pro-osborne_14884ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2007-03-09</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000792130</issuerCik>
        <issuerName>DATAWATCH CORP</issuerName>
        <issuerTradingSymbol>DWCH</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001024388</rptOwnerCik>
            <rptOwnerName>OSBORNE RICHARD DE J</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O DATAWATCH CORPORATION</rptOwnerStreet1>
            <rptOwnerStreet2>271 MILL ROAD, QUORUM OFFICE PARK</rptOwnerStreet2>
            <rptOwnerCity>CHELMSFORD</rptOwnerCity>
            <rptOwnerState>MA</rptOwnerState>
            <rptOwnerZipCode>01824</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2007-03-09</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>2500</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                    <footnoteId id="F1"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>278002</value>
                    <footnoteId id="F2"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                    <footnoteId id="F1"/>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">The securities awarded on March 9, 2007 are in the form of restricted stock units (RSUs) issued pursuant to the Datawatch
 2006 Equity Compensation and Incentive Plan.  833 RSU's will vest on 3/9/08 and an additional 833 RSU's will vest at 3/9/09,
 with the final 834 RSUs vesting on 3/9/10. This vesting schedule is subject to acceleration in certain instances in
 connection with an acquisition or other change of control event.</footnote>
        <footnote id="F2">Includes 143,370 shares held by Carnegie Hill Associates, LLC. Mr. Osborne is the Managing Principal of Carnegie Hill
 Associates, LLC and may be deemed a beneficial owner of the shares held by Carnegie Hill Associates, LLC.  Mr. Osborne
 disclaims beneficial ownership of these shares except to the extent of his pecuniary interest therein.  Also includes 43,908
 shares owned jointly with Mr. Osborne's spouse.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>By: /s/ Richard de J. Osborne</signatureName>
        <signatureDate>2007-03-10</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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