BRDO Study Reveals Global Norms for IP Rights in Government-Funded Defence Innovations

The Better Regulation Delivery Office (BRDO) has released an in-depth study analyzing international regulatory frameworks governing intellectual property (IP) rights for defence innovations developed with government funding. The study examines policies in the United States, United Kingdom, Israel, Germany, France, Finland, Denmark, India, and Türkiye, as well as practices adopted by the European Union and NATO.

A key finding is that most countries adhere to a common principle: IP rights to defence technologies created with public support remain with the developer. This enables further commercialisation and development of the technology. Governments, however, protect their strategic interests through licensing arrangements, special contractual clauses, or exceptional access rights under specific circumstances.

In the United States, this principle is codified in the Bayh-Dole Act, which allows developers to retain IP ownership while granting the government a royalty-free, non-exclusive license for defence and other public uses. Similarly, the United Kingdom employs the DEFCON 705 clause in grant agreements to maintain developer ownership, with the government typically receiving broad, non-exclusive licenses for national security purposes.

Israel follows a comparable model where developers keep ownership rights, but the government exercises stringent control over the transfer of critical technologies abroad. Additionally, the Israeli government secures royalties if the technology achieves commercial success.

Germany’s approach is more case-specific, with government rights determined through contract terms and funding program conditions based on the nature of the technology and support provided.

The study also notes that NATO’s innovation accelerator network DIANA and the European Defence Fund (EDF) uphold developer ownership of IP rights, reinforcing this model as a standard within international defence innovation ecosystems.

BRDO emphasizes the importance of aligning Ukraine’s policies with these international norms to facilitate deeper integration into global defence supply chains and access to international financing. Alina Podolieva, Deputy Head of Regulatory Policy at BRDO, stated, “International experience demonstrates that public funding for defence innovation can coexist with intellectual property rights remaining with the developer.”

The report warns against overly restrictive policies that mandate the transfer of IP rights to the state, highlighting that such measures may deter private sector participation in government grant programs, reduce private investment, and weaken incentives for ongoing development and scaling of technologies after public funding ends.

This study comes amid growing interest in Ukraine’s defence technology sector, with companies like MaXon Systems developing autonomous interceptor drones and Ukrainian DoD Solution attracting investment from Network.VC Defense. Additionally, Norwegian fund Gardar plans a €100 million investment in Ukrainian defence technology, signaling expanding international engagement.

BRDO’s findings provide a valuable framework for policymakers seeking to balance national security with innovation incentives in defence technology development.