The global market for unmanned surface vessels (USVs) is experiencing rapid growth, with a notable surge in new designs, launches, and solutions now being marketed for both defence and commercial applications. Across the sector globally, we are seeing designers and asset owners regularly introducing new models, iterations, and upgrades to their USVs. As innovation accelerates, one issue that consistently arises—and is often underestimated—is intellectual property (IP).
Frequently, intellectual property is misunderstood or underestimated in the USV sector. For those of our readers who attend our annual industry event, MASS@Moorgate in London, you will have heard the SH lawyers repeat that understanding what IP you have (if any) and taking steps to protect it is absolutely critical. This is especially true given that a number of designs currently on the market arguably look relatively similar, making it even more important to identify, document, and secure your intellectual property from the outset.
Whether for commercial or defence use, IP is at the heart of the USV sector. It underpins competitive advantage, commercial value, and the ability to scale and protect a business. In this article, we highlight key IP issues we have encountered in practice and provide practical considerations for both designers and investors. As the market matures, the ability to identify, protect, and retain ownership of IP—through copyright, patents, design rights, trade secrets, and trade marks—will be critical for maintaining value and managing risk. For investors, robust IP due diligence is essential to avoid costly pitfalls and ensure the business is built on a solid foundation.
With the proliferation of new USV designs and the increasing sophistication of both commercial and defence solutions, the risks associated with IP mismanagement are greater than ever. Issues such as inadvertent transfer of IP to customers or suppliers, leaks of technical know-how, and disputes over ownership can all undermine the value of a USV business or jeopardise a transaction. As we discuss below, a proactive and layered approach to IP protection is essential for anyone operating in this innovative and fast-moving sector.
Having a proper IP identification process and audit system allows a business to track its IP assets in a meaningful way as they are generated. This then allows appropriate decisions to be made regarding their protection. The real-life consequences of not having these systems in place are that it is not possible to present a package of valuable IP to investors, and enforcement becomes more difficult and costly.
Designers: This means keeping a confidential register of the designs you produce, including variations to them, dates they were created and information about the designer. This will be extremely helpful when it comes to evidencing ownership during a dispute or fundraising. Equally, if you believe there is something novel and inventive about the vessel design, track it confidentially and keep it secure.
Investors: As well as allowing the identification of what IP a business has, asking the question about whether a designer has an IP register or has conducted an audit allows you to assess how seriously the company takes IP.
An extremely common problem is for concepts and designs to be shared without any clear confidentiality protections in place. Whilst NDAs can cause friction during development and collaborations, particularly at an early stage of development, they are an essential way of protecting know-how.
A good example of the importance of confidentiality protection is the case of Salt Ship Design v Prysmian Powerlink, which involved the design of a cable-laying vessel. Salt had provided design work for Prysmian, who eventually contracted a builder to construct the vessel using the builder’s own in-house designer, with whom Prysmian shared Salt’s design documents. Salt successfully sued Prysmian for breach of confidence and was awarded €5 million in an interim damages award.
Also, bear in mind that public disclosures-for example at trade shows, in marketing materials, or even potentially during sea trials-can destroy the ability to obtain a patent. It is therefore important to ensure that, prior to any outdoor testing or public exhibition, a patent application is filed. We have discussed this previously in the context of offshore floating wind.
Designers: Given the importance of IP to your business, you should not be afraid to insist on an NDA when working with an external party: careful thought should be given to a prospective ‘partner’ who refuses to agree to one. Once signed, NDAs should ideally be recorded in an internal register. This can be very helpful when tracking the source of leaks and also during due diligence exercises during a fundraising.
Investors: It can be helpful to ask questions about who the business has shared know-how and designs with and to correlate those responses against the NDAs which are disclosed. For example, if crucial know-how has been shared with a builder overseas without an agreement, then this could be a red flag.
If you do not own the IP, or have a sufficient licence to it, you will not be able to take action against infringers and it will not provide any value to the business.
Meanwhile, licensing allows others to use a design but, importantly, in a controlled way. For example, a designer may wish to design a vessel for a customer but not give away its IP rights, requiring the customer to pay for new vessels to be built to the same design. Licensing is also very important in collaboration scenarios, as the various parties will need appropriate licensing to be in place between them to allow the project to succeed. However, the scope of those licences should not give the other parties free rein over the design.
A recent example of how we have seen ownership and control of IP in the USV sector can potentially go wrong is in the case of introducer agreements. If not properly negotiated, these agreements can give de facto control of an IP asset to an introducer, which can then have serious consequences for a deal.
Designers: You should make sure that when designs are being developed, all those working on a project are either employees of the company or are contracted on written terms which assign any IP they create to the company. The latter point is a very common problem, which often results in IP getting ‘stuck’ with contractors. Ultimately for designers, this issue goes to value in the business so it is essential that it is addressed correctly from the outset. Deals can collapse because the IP ownership is not what was assumed by the designer.
When collaborating on projects where multiple parties are contributing to a design, it is critical that there are written terms about which party will own the resulting IP and which has a licence to use it and any IP which the parties brought to the project.
Investors: It is important to ask open questions about how IP was developed and seek full disclosure of the relevant agreements, rather than simply relying on warranties as to ownership. Separately, because IP can be assigned and licensed within group structures, it can allow for IP to play a functional role in a transactional context, for example for the purposes of taking security.
Patents are ‘monopoly’ rights that give the owner the exclusive right to exploit the patented product or process for 20 years in a particular country. They can be very powerful rights, but can also become expensive pieces of paper if not considered carefully.
Meanwhile, the consequences of patent infringement are draconian, going beyond damages to injunctions. This allows a patent owner to stop a competitor from producing its products if it is found to have infringed a patent.
Designers: If you are considering patent protection, it is important to involve a patent attorney at an early stage to prevent mistakes that could later result in the patent being invalid. Also consider carrying out a ‘freedom to operate’ search, which will identify risky third-party patents.
Investors: Be aware that not all patents are created equal. Due diligence can be conducted on patent portfolios to assess their strength and the scope of protection they offer, which will then inform value. This can be a costly exercise, but it is also a good way of assessing whether a patent is of value to the business. Also consider assessing freedom to operate, and whether this has been assessed by the designer. Patent infringement disputes are incredibly costly, and the consequences of infringement can result in value being destroyed or seriously affected.
In this sector, the most relevant rights are copyright, patents, confidential information/trade secrets and design rights. Trade marks are also increasingly relevant for brand-focused USV businesses. These rights can all subsist at the same time in a single asset or its parts.
For example, copyright can protect technical drawings, including general arrangements. Design rights (registered and unregistered) can protect the appearance of the asset or its components. Patents protect inventions (products or processes) that are novel and inventive. Confidential information and trade secrets protect information that is not public, which is critical for developments that are not yet patented. Trade marks can also add value, as building a strong brand around designs is important when scaling.
A layered approach to IP protection is almost always the most effective strategy.
The legal issues discussed above make clear that, in the rapidly growing and increasingly competitive USV sector, intellectual property is not a secondary concern—it is a core commercial asset. Regardless of the size, complexity, or value of your business or project, every party—designer, owner, or investor—should have a clear, proactive IP strategy. Failing to identify, protect, and manage your IP can lead to costly disputes, lost value, and missed opportunities. In a market where designs can appear similar and innovation moves quickly, robust IP protection is essential for safeguarding competitive advantage, supporting investment, and enabling sustainable growth. The most successful businesses in this space are those that treat IP as mission-critical from day one.
MASS@Moorgate, Wednesday 18 November 2026
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