Intellectual Property (IP) is the life-blood of any business. It’s the product designs that required thousands of man-hours and millions of dollars to create, or the 10-year strategy overviews that can give an competitor a huge advantage. The stakes for safeguarding IP within the Aerospace & Defense industry are at an all-time high, given the costs, complexity, and potential military applications of their products. In March 2014, headlines around the world recounted how IP that was stolen from the Lockheed Martin F-35 Lighting II in 2007 was being built into the Chinese J-31 fighter.
In the wake of many similar examples in recent years, A&D companies are stepping up their efforts to manage the increasingly-stringent IP regulations from US State Department via the International Traffic in Arms Regulations (ITAR) and Export Administration Regulations (EAR). But the challenge lies in finding a balance between securing the data in fulfillment of regulatory requirements, and still allowing the free flow of information and collaboration across their global organization, including outside partners.
Securing data shared to external partners and suppliers adds a new layer of complexity to an already challenging task. Across the industry, companies are shifting more responsibility into the hands of third-party suppliers, meaning these suppliers now have access to the prime contractors’ most valuable data. These companies need to adhere to strict levels of data management processes in order to keep the flow of IP safe from competitors or other nations.
Consider the two most common approaches to managing IP:
- Manual process in which a team of people in a document control department track the use and movement of data; or
- IT-based process that segregates data into multiple systems — often by location — restricting access to select individuals.
Both approaches have major shortcomings. The first one offers no real IP protection, since manual processes are easily circumvented. The second approach puts the company’s IT staff in charge of controlling access to IP.
Bob Parker, IDC group Vice President, leads three IDC practices including IDC Manufacturing Insights, recommends IP management best-practices, with emphasis on five key points that an effective IP management solution should provide:
- Protect corporate IP and that of extended supply chain partners 2. Protect the company from unintentionally violating export regulations and non-disclosure agreements 3. Provide strict control over shared data while ensuring quick access to information to those who need it
- Enable collaboration while adhering to export control regulations, commercial IP laws and security protocols for all countries involved
- Use a Product Lifecycle Management (PLM) approach to manage company IP
The A&D Industry must either continue developing its IP management capabilities, or watch their plans get snatched out from under them while receiving millions of dollars in regulatory fines in the process.
To read more about Dassault Systèmes efforts to help the A&D industry collaborate securely, download our free paper: “Manage and Secure Your Intellectual Property.”
