Canada’s defence sector is shifting—quickly. With a growing focus on innovation and a commitment to increased defence spending, tech companies are at the centre of national security conversations. But with visibility and opportunity comes risk. For tech innovators contributing to national security, protecting your intellectual property isn’t optional; it’s foundational. From funding to commercialization to scale, IP must be treated as a strategic asset to ensure long-term success. Here’s what tech leaders need to consider now.
Why Should Defence Tech Companies Pay Attention to IP Right Now?
Canada’s defence sector is undergoing a transformation. With the federal government committing to reach 2% of GDP in defence spending and prioritizing innovation under its Our North, Strong and Free policy, the spotlight is squarely on tech innovators to deliver capabilities and solutions that could shape the future of national security.
This is a huge opportunity, but also a critical inflection point.
As defence contracts grow and timelines tighten, companies that haven’t locked down their intellectual property (IP) strategy may find themselves at a serious disadvantage. Whether you’re an early-stage innovator or scaling for global contracts, now is the time to treat IP like a strategic asset, not just a legal formality
How Does Innovation Become a Liability Without IP Protection?
Whether you're developing autonomous systems, secure communications platforms, AI-driven threat detection, or advanced materials, your IP is the core of your competitive edge. It’s what makes your company investable, defensible, and scalable.
In the defence sector, IP isn’t just about patents, it’s about control, leverage, and long-term viability, but innovation cycles are fast, procurement is complex, and ownership is not always straightforward.
Without a clear IP strategy, you risk:
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- Losing ownership of your tech in government-funded projects.
- Being locked out of future commercialization or export opportunities.
- Facing legal and operational hurdles in procurement and licensing.
Why is an IP Strategy Mission-Critical for Defence Tech Companies?
The Canadian government has recognized the importance of IP in defence procurement and has taken clear steps to define how IP is managed in federally funded defence initiatives. Through frameworks like the Principles for Managing Intellectual Property in Defence and Marine Procurement, it aims to balance national interests with industry innovation.
For tech companies, this creates a complex (but navigable) landscape where IP rights, licensing, and data sovereignty are tightly interwoven with procurement contracts.
To compete effectively, you need to know:
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- When and how the government may claim ownership.
- What rights you retain as a contractor or partner.
- How IP terms influence your ability to scale or sell internationally.
What Should Tech Innovators Do to Build a Defensible IP Strategy?
Here’s how to build a resilient IP strategy that aligns with defence priorities:
1. Do You Own Your Core IP?
Ensure your foundational technologies (algorithms, designs, source code, etc.) are protected through patents, copyrights, or trade secrets. Avoid ambiguous ownership in joint ventures or collaborative R&D. Make sure you understand the existing IP landscape and whether there are components of your technology that may require a license to third party IP.
2. Do You Understand Crown Procurement Rules?
Familiarize yourself with the Policy on Title to Intellectual Property Arising Under Crown Procurement Contracts. It outlines when the government may claim ownership and when you retain rights. Knowing this upfront can help avoid disputes later, and ensure your commercialization plans stay intact.
3. Are You Negotiating Licensing Contracts Wisely?
Defence contracts often involve dual-use technologies—solutions that can serve both military and civilian markets. Structure your contracts to retain commercialization rights, especially if your roadmap includes scaling beyond Canada.
4. Is Your IP Ready for Export and Scale?
Scaling internationally means thinking ahead. Design your IP strategy to support growth by aligning with:
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- Export controls like ITAR (International Traffic in Arms) compliance,
- NATO interoperability standards,
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IP protection in allied markets.
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5. Is Your IP Integrated into Your Innovation Lifecycle?
Don’t wait until you're ready to ship or sell to think about IP. From ideation to deployment, embed IP considerations into every stage of product development and ensure that your SR&ED claims are in synced with your IP protection.
How Does IP Contribute to Your Strategic Advantage?
In a sector where innovation cycles are accelerating and global competition is fierce, IP is your moat. It enables you to:
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- Win contracts by offering unique, protected capabilities.
- Attract investors and partners who value defensible tech.
- Scale globally with confidence in your ownership rights.
- Contribute meaningfully to Canada’s defence modernization.
- Reduce risks related to third party IP.
It’s not just about legal safety. It’s about creating leverage in a high-stakes, high-opportunity sector.
What Happens When Innovation Isn’t Protected?
Here’s the risk: you could be building game-changing technology—only to lose control of it at the moment it becomes valuable.
You could:
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- Miss out on critical export opportunities.
- Spend months resolving disputes that stall your momentum.
- Struggle to raise funding due to unclear ownership rights.
- Fail to capture the full ROI on government-funded innovation.
And perhaps most critically, you could be building vulnerability into your business, not strength.
What Should Defence Innovators Do Next?
If you’re contributing to Canada’s defence sector—or planning to—it’s time to put your IP house in order. You don’t need to become a legal expert, but you do need a strategy that works alongside your innovation efforts, not after them.
Build with Protection in Mind
Canada’s defence future depends on agile, innovative tech firms. But innovation without protection is a vulnerability. By treating IP as a strategic asset—not just a legal checkbox—you position your company to lead, scale, and secure its place in the defence ecosystem.
Connect with Stratford’s IP Strategy team to build a protection-first approach that matches your ambitions.
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