I've been working on doing this in Silverlight by adding all of my DataContract class files as links into a Silverlight project, essentially recompiling the DataContracts in Silverlight so I can share them with a Silverlight app. The first thing I learned is that it may be worthwhile for you to do this with DataContracts, but don't bother with your service interface - you really need to use slsvcutil or Visual Studio's Add Service Reference to generate Silverlight proxy clients, because Silverlight mandates the use of specific asynchronous patterns implemented in a specific way. However, with the default settings, Visual Studio will reuse DataContracts in referenced assemblies, meaning that your business objects won't end up as generated code, and you can keep all your logic and calculated properties.
The next and most interesting thing I learned was regarding the presence of public setters on DataMembers. One of my data contracts has a private setter - this contract and its service are working fine with a standard console application client, but as soon as I access the service in Silverlight, things blow up. Check this out:
System.Security.SecurityException: The data contract type 'MyContract' cannot be deserialized because the property 'MyPrivateSetterProperty' does not have a public setter. Adding a public setter will fix this error. Alternatively, you can make it internal, and use the InternalsVisibleToAttribute attribute on your assembly in order to enable serialization of internal members - see documentation for more details. Be aware that doing so has certain security implications.
Whoa. What's the deal?
Quite simply, it's important to never forget that Silverlight code is only partially trusted. Without full trust, System.Runtime.Serialization can't instantiate a raw object and populate it's properties, it needs to use the same method that developers do from user code; namely, a public setter.
As the exception text states, the alternative is to make System.Runtime.Serialization a friend assembly of your data contract assembly via InternalsVisibleTo, and make the setter internal instead of private. Apparently, if you are using the JSON serializer, you will also need to friend System.ServiceModel.Web and System.Runtime.Serialization.Json as well.
As an aside, kudos to the teams that take the time to add exception text like this. Seriously, there's not much better than getting an error with text like, "Try approaches X, Y or Z to fix this, and check out the documentation too."
Silverlight Serialization - avoiding having public setters in properties