The IP Trap That Could Derail Your Defence Startup

You built the technology. Your prototype works. But can you prove that you own it?

In defence manufacturing, developing a working product is only part of the challenge. Intellectual property (IP) ownership, software licensing, third-party components and contractual obligations can determine whether a promising technology is ready for collaboration, procurement and long-term commercial success.

In Part 18 of Working with the Indian Defence Ecosystem: Defence Procurement – A Practitioner’s Perspective, Brigadier Narendra Pratap Singh examines intellectual property as a practical business challenge for Indian defence startups, MSMEs and technology developers.

Through four illustrative stories, this episode explores what can go wrong when a company hires a freelance developer without securing written IP assignments, incorporates open-source software without understanding its licence obligations, modifies another manufacturer’s platform without clear agreements, or pursues a technically feasible retrofit that may not deliver operational or economic value.

The episode also examines the IP provisions proposed in the Draft Defence Acquisition Procedure (DAP) 2026, including indigenous design ownership and the different implications of Make-I and Make-II development routes. These are draft proposals; the applicable procedure and contractual provisions must be verified before any procurement decision.

Brigadier Singh explains why owning intellectual property is different from granting the buyer access to it, and why defence companies should build an ownership file containing signed IP assignments, software and licence inventories, partnership agreements, dated design records and applicable registrations.

The central lesson: a product that works is not enough. You must be able to demonstrate the chain of rights behind it.