How a New Presidential Administration Can Impact IP in Government Contracting

As administrations change, so can the policies and priorities that shape intellectual property (IP) rights, particularly within the realm of government contracting. While the fundamental frameworks governing IP in this context remain rooted in statutes and regulations, the nuances of their application can shift, presenting new opportunities and challenges for contractors. Let’s explore how a new administration might influence the IP landscape for companies engaged in government contracts. 

Adjustments in Regulatory Priorities 

Every administration brings its own regulatory agenda, which can directly affect the treatment of IP in government contracts. For example, a new administration may be more, or less, pro-innovation, meaning priorities may shift between encouraging innovation through small business-friendly IP policies or favoring the government's rights to use, modify, and distribute IP developed under its contracts. A focus on technology, cybersecurity, or emerging fields such as artificial intelligence and quantum computing could result in: 

• Weakened Data Rights Provisions: The government might adjust regulations to secure broader rights in technical data and software to broaden access to proprietary information for national security or interoperability concerns. 

• Encouragement of Open Innovation Models: On the other hand, pro-innovation policies could incentivize contractors to share IP to stimulate competition and collaboration within critical sectors. 

Impact on Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs 

For small businesses participating in the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, shifts in funding priorities and policies can affect IP rights profoundly. A new administration may prioritize funding for specific industries, aligning SBIR/STTR solicitations accordingly. It may also modify protections for data generated under these programs, potentially altering the exclusivity period small businesses currently enjoy. And finally, an emphasis on commercialization pathways could complicate IP protection for dual-use technologies, requiring companies to alter their IP strategies in proposals. 

Trade Agreements and International Collaboration 

Global trade policies often see significant adjustments under new leadership, and these can influence IP provisions in international contracts. For instance, changes in international trade agreements may impact the enforcement of IP rights overseas or the terms under which foreign contractors collaborate with U.S. entities. An administration less interested in international standards might promote domestic use of foreign technologies, and cause international IP protection to be more tenuous. Such changes will require contractors to rethink how to protect proprietary technologies at home and abroad. 

Compliance and Enforcement Trends 

IP compliance and enforcement can also evolve under a new administration. Agencies responsible for overseeing government contracts, such as the Department of Defense (DoD) or the General Services Administration (GSA), might: 

• Increase scrutiny of contractors’ IP practices, particularly in industries critical to national security. 

• Introduce new reporting requirements related to IP use and ownership. 

• Expand the use of audits to ensure compliance with IP clauses in contracts. 

Preparing for Change 

Government contractors can take proactive steps to navigate potential changes in the IP landscape: 

1. Stay Informed: Regularly monitor updates from key agencies and industry groups to understand evolving priorities.
2. Review Contracts: Ensure your contracts’ IP clauses align with your business objectives and anticipate possible shifts in enforcement or interpretation. 
3. Engage Legal Counsel: Work with experienced attorneys to adapt your IP strategies to new regulatory and policy developments.
4. Participate in Advocacy: Collaborate with industry associations to voice concerns and recommendations regarding proposed policy changes. 

The advent of a new presidential administration can bring both uncertainty and opportunity to government contractors navigating the complex interplay of IP and federal procurement. By remaining vigilant, adaptable, and well-informed, contractors can position themselves to protect and leverage their IP while meeting the government’s evolving needs. Martensen IP is here to provide guidance and support as you navigate this dynamic landscape. Contact us to learn more.