Intellectual Property in the Defense Sector: Wartime Challenges

Intellectual Property in the Defense Sector: Wartime Challenges

Key Aspects:

• Military developments often fall under dual-use technologies, subject to strict export and transfer controls.

• IP in the defense sector gains special importance under martial law when patent and trade secret protection becomes strategically vital.

Legal Framework:

• Law of Ukraine "On State Regulation of Activities in the Field of Technology Transfer".

• Mechanisms to restrict access to strategic technologies by foreign companies.

• Use of state secrecy regime to protect information not eligible for patenting.

Case Law:

• U.S. cases (e.g., United States v. Xu, 2020) — criminal liability for attempts to steal military-purpose technologies.

• In the EU and Ukraine, some disputes are handled in closed proceedings due to classification.

Wartime Features:

• Accelerated patent registration procedure for military developments.

• Involvement of the private sector in development (Public-Private Partnerships).

• Implementation of special IP protection procedures for projects financed by the state budget or donor funds.

Recommendations for Manufacturers:

• Identify categories of technologies subject to protection, including through patents or trade secret regimes.

• Conduct due diligence of counterparties and implement technology transfer control policies.

• Develop internal IP guidelines for personnel, particularly regarding handling of confidential information.

Recommendations for Government Bodies:

• Create a registry of critical military technologies with restricted access.

• Define simplified IP protection mechanisms under martial law.

• Enforce export control not only at the state level but also through early warning systems for manufacturers.

• Ensure centralized support for patenting key defense developments in international jurisdictions.

Summary Table of IP Risks for Ukraine's Defense Sector

Risk	Description	Potential Consequences	Recommended Actions
Unprotected patents	Inventions not patented or updated	Loss of control, replication by competitors	Patent protection policy, registration of key solutions
Unauthorized technology transfer	Absence of contractual safeguards	Disclosure of critical information	NDAs, restrictive clauses, counterparty audit
Trade secret leakage	Unprotected internal documents, IT systems	Reputational and financial losses	Trade secret regime, IT security, staff training
Uncontrolled transfer to foreign partners	Lack of oversight by state or enterprise	Loss of sovereignty over technologies	Coordination with authorities, inclusion in critical lists
Military patent espionage	Cyberattacks, insiders	Theft of IP, weakening of defense capabilities	Counterintelligence, encryption, internal response procedures