Ukraine’s Defense Ministry Mandates 25% License Revenue Share for Military Inventors Under New IP Rules

The Cabinet of Ministers of Ukraine has endorsed new regulations governing intellectual property (IP) management within the Defense Forces, as announced by the Ministry of Defense of Ukraine. These updated rules establish a transparent licensing system for state-owned military developments, enabling their transfer into mass production on a paid basis.

Under the new framework, at least 25% of the revenues generated from paid licenses will be directly disbursed to the servicemembers who developed the respective technologies. The remaining funds will be allocated to support military research and development (R&D) activities and the advancement of defense innovations. The Ministry of Defense also noted that, in specific cases, certain technologies may be licensed free of charge.

This resolution builds upon and broadens the licensing mechanism initially introduced in October 2025 as part of an experimental project aimed at transitioning Ministry of Defense technologies into production. The expanded procedure now encompasses defense technologies owned not only by the Ministry of Defense but also by other components of the Defense Forces.

The updated licensing system introduces new incentives for defense enterprises by allowing state technologies to be transferred under paid exclusive licenses. This enables companies to invest in both production capabilities and the long-term development of state-originated technologies.

To ensure fairness and competitiveness, the regulation mandates competitive selection processes for exclusive licensees and establishes equal conditions for obtaining non-exclusive licenses. This approach is designed to foster a level playing field among manufacturers.

Importantly, the government’s decision extends beyond production technologies to cover the use of content such as audio, video, images, and other intellectual property objects owned by the Defense Forces. This comprehensive approach aims to create a unified ecosystem for managing defense-related IP.

The Ministry of Defense emphasized that this ecosystem will enable the state, in partnership with business entities, to effectively respond to the multifaceted challenges of war across all domains.

The funds derived from licensing will have clearly defined purposes. Beyond remunerating the servicemember-authors, a portion of the income will finance the activities of the military units where the technologies were developed, thereby strengthening R&D competencies within the armed forces.

Additional funds will be dedicated to initiatives supporting the development of defense technologies in Ukraine and their legal protection.

The Ministry of Defense expressed confidence that implementing this initiative will fully commercialize state defense developments, accelerate R&D cycles in both military and private sectors, and enable domestic defense enterprises to scale effective technological solutions. This collaboration with the state is expected to create a technological advantage for Ukraine’s defense industry.

This policy change reflects Ukraine’s broader strategic efforts to enhance innovation and technological self-reliance within its defense sector amid ongoing security challenges.