For innovative companies chasing Small Business Innovation Research (SBIR) Phase II or III awards, the excitement of securing government funding often overshadows a critical reality: your proposal may become more than a persuasive pitch. It can become a legally binding part of the contract.
This shift means the words you choose, the technical details you include, and even the way you structure your workforce can have long-term consequences for your intellectual property (IP) rights. These risks often go unnoticed until they resurface during investor due diligence, licensing negotiations, or high-stakes acquisitions.
Why the Risks Are So Subtle
Most proposals are drafted with a focus on technical merit, demonstrating capability, innovation, and a clear plan for execution. But in government contracting, terms like “develop,” “create,” or “design” can carry specific regulatory meanings. Without realizing it, you may be granting the U.S. government rights that limit your ability to control, commercialize, or exclusively license your technology later.
The challenge is compounded by the complexity of the Federal Acquisition Regulation (FAR) and the Defense Federal Acquisition Regulation Supplement (DFARS). While these frameworks exist to define how government IP rights are determined, their specialized language and layered clauses are rarely second nature to business leaders or technical teams.
The Real-World Stakes
Consider the scenario of a growing tech startup that wins a Phase III award. On paper, it is a major milestone. But if the proposal language or contract terms unintentionally give the government broad rights, that startup’s competitive advantage and even its valuation could take a hit. The problem is not theoretical; it has happened before.
Why This Matters Beyond Compliance
Protecting IP in the context of government contracts is not just about avoiding legal disputes. It is about preserving future opportunities. Whether your growth strategy includes private investment, licensing deals, or an eventual acquisition, maintaining control over your proprietary methods and data is a business imperative.
The good news is that these risks can be mitigated with foresight and the right guidance. It starts with understanding how proposal language shapes contractual obligations and how to align internal processes, documentation, and agreements to keep your IP secure.
This essential white paper uncovers:
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How technical volumes can become enforceable contract terms
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Common missteps in using contractors that can void IP protections
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A clear, actionable roadmap to safeguard your intellectual property
Download the white paper to gain the knowledge you need to protect your innovation while still winning the government contracts that fuel your growth.
About Martensen IP
At the intersection of business, law and technology, Martensen understands the tools of IP. Martensen knows the business of IP. We understand the tech market, especially when the government is a customer, and we know how to plan, assess, and adjust. Patents, trademarks, copyrights, trade secrets, licenses are our tools.
Martensen IP Media Contact
Mike Martensen | Founder
(719) 358-2254
Source: Prodigy.press
Release ID: 1753433
