Navigating IP in Government Contracts

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Fenwick & West LLP

For space, defense, and industrial technology companies, securing government contracts is often a major growth milestone. But without a clear IP strategy, working with agencies like NASA or the Department of Defense (DoD) can put a startup’s long-term technology ownership at risk.

A common misconception is that working with the government means giving up your IP rights. In reality, companies may negotiate favorable terms—but only if they plan ahead.

A well-structured IP strategy aims to ensure that companies can:

  • Retain ownership of their core technologies while meeting government funding requirements.
  • Negotiate licensing terms that allow for future commercialization.
  • Prevent IP leakage by structuring agreements with subcontractors and research partners.

Companies that fail to plan for IP ownership risk losing commercial value or facing licensing restrictions that hurt long-term growth.

Before signing any government contract, deep tech companies should conduct a full IP audit and work with legal counsel to structure agreements that protect their innovations beyond the scope of a single contract.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

© Fenwick & West LLP

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