Exploring Opportunities through IP – Guidance for UK Companies

To exploit IP opportunities, UK companies first need to understand the basic principles of the policy and how offshore companies are expected to fulfil their IP commitments.

When bidding on a UK MoD programme, offshore companies (at prime or sub-contractor level) are invited to submit IP proposals (to a maximum of 100% of the non-UK content) to the IPU who will use these as the basis of an IP agreement. The proposals will comprise two forms of IP: Direct IP and Indirect IP.

Direct IP. This is work carried out by UK companies on the MoD programme that is the catalyst for the IP proposals assembled by the offshore company. It indicates the amount of the UK content on the programme.

Indirect IP. In short this is other defence work. It can be programme-related (where UK companies are retained in the supply chain when the offshore company supplies the equipment or service acquired by UK MoD to third parties) or work unrelated to the UK MoD programme.

Clearly, UK companies wishing to obtain work through Direct IP need to be aware of current UK MoD programmes and those offshore companies engaged in them. To this end, you should be aware of the MoD Contracts Bulletin (contact details below) which provides information on forthcoming MoD programmes.

As Indirect IP is not restricted to the UK MoD programme it can provide more varied opportunities across a broad spectrum of defence work. UK companies should, therefore, ensure they are knowledgeable about the specific areas of interest and requirements of those offshore companies with IP commitments and be able to identify how their products or services would complement these.

UKTI Defence & Security Organisation (UKTI DSO) (www.dso.uktradeinvest.gov.uk ) holds more detailed information regarding IP including a list of offshore companies holding IP commitments or with IP accounts. There is also a series of ‘how to do business with…’ guides produced by major offshore prime contractors. These hold useful information for those seeking to work with these companies.

Contract Bulletin contact details:
BiP Solutions Ltd
Tel: 0141 332 8247
Email: bip@bipsolutions.com
Website: www.contracts.mod.uk