Research Reports

Pilot Program Design to Test Innovative Approaches in Negotiating Intellectual Property

PUBLIC RELEASE
October 2024

COMPLETED
July 2024

AUTHORS:  Dr. Daniel A. DeLaurentis, Dr. Stephan Biller, Dr. Jitesh H. Panchal, Mr. Qian (Alex) Shi, Ms. Dalia Bekdache, Mr. Prajwal Balasubramani, Dr. Waterloo Tsutsui
PURDUE UNIVERSITY

This report introduces a decision framework tailored to navigate intellectual property (IP) complexities in additive manufacturing (AM) applications for defense acquisition.

IP rights play a critical role in defense acquisitions, ensuring operational sustainability, adaptability, and cost-effectiveness of government defense systems. Acquiring the correct IP and technical data rights is essential for their effective operation, maintenance, and long-term sustainability. Insufficient IP rights can lead to vendor lock, limited competitive sourcing for upgrades or repairs, and increased sustainment costs. Conversely, defense contractors view their IP as valuable assets requiring protection to safeguard investments and future income. These differing perspectives between the government (seeking access) and defense contractors (seeking protection) necessitate careful management.

The framework starts with comprehensive scenario screening and scoping, outlines the AM lifecycle, identifies critical IP assets, and explores strategic considerations while presenting diverse options. Key drivers of AM IP acquisition strategies include: 1. rationale for IP acquisition; 2. identification of essential IP assets; and 3. structuring of IP acquisition. Inspiration from real options theory is employed in the latter portions of the framework. The report illustrates the framework’s application by developing three fictitious vignettes under different mission scenarios: 1. limited access to original equipment manufacturers; 2. demand surge; and 3. maintenance, repair, and operations. Each vignette includes specific assumptions to aid analysis, influencing the recommended acquisition strategy. Additionally, sensitivity analysis evaluates the impact of key assumptions on these strategies, presenting recommended acquisition options as a checklist intended for contractual inclusion with appropriate legal language.