Intellectual Property in Heavy Manufacturing

Fenwick & West LLP
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Fenwick & West LLP

Heavy manufacturing companies operate at the intersection of hardware, materials science, and automation—sectors where IP protection is critical for long-term competitive advantage.

Unlike software startups, industrial companies must protect processes, systems, and engineering breakthroughs that are often embedded in physical products. A weak IP strategy may lead to competitors reverse-engineering core innovations.

Considerations for heavy manufacturing IP strategy:

  • Conduct regular IP audits – Identify proprietary technologies and ensure they are protected.
  • Use a hybrid patent + trade secret approach – Not all industrial innovations should be patented. Some may be more valuable as trade secrets.
  • Secure global protections – Heavy manufacturing operates across borders; ensure IP protections extend beyond domestic markets.
  • Implement supply chain IP safeguards – Vendors and subcontractors should have clear IP agreements to prevent leakage of proprietary manufacturing processes.

Data shows that companies with strong IP portfolios consistently achieve higher valuations and exit multiples.

For industrial tech companies, IP is not just a legal necessity—it is a fundamental business asset that determines long-term success

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.

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