Licensing of State-Owned Defense IP

14/ 08/ 2026

Listen to online Stop   In brief On July 2, 2026, a resolution of the Cabinet of Ministers of Ukraine came into force, approving the Procedure for the Issuance of Licenses (Permits) for the Use of Intellectual Property Objects Owned by the State Represented by the Ministry of Defense of Ukraine and Other Authorities Responsible for the Management of Military Property (the Procedure). The Procedure establishes a mechanism under which the Ministry of Defense of Ukraine and other security and defense sector authorities may issue licenses for the use of intellectual property objects (IP Objects) whose proprietary rights are owned by the State. The Procedure aims to facilitate the practical use and commercialization of such IP Objects by granting usage rights to individuals and legal entities. Key takeaways Availability of licenses to Ukrainian and foreign persons Licenses may be obtained by Ukrainian and foreign legal entities, citizens of Ukraine, foreign nationals and stateless persons, except for persons subject to statutory restrictions, including sanctioned persons and persons associated with the aggressor state. Fee-paying and free-of-charge licenses As a general rule, licenses are granted on a fee-paying basis. At the same time, the Procedure provides a simplified regime for granting free-of-charge non-exclusive licenses, particularly for the needs of the security and defense sector, state authorities, charitable organizations, and scientific research and experimental activities. Guaranteed remuneration for authors (inventors) At least 25% of the funds received as payment for the use of IP Objects must be allocated to remuneration for the authors (inventors) of the relevant development. In addition, a portion of the funds must be allocated to the development of the units in which the relevant IP Object was created, as well as to further research, development and protection of intellectual property rights. Introduction of competitive selection for fee-paying exclusive and sole licenses Exclusive and sole licenses for IP Objects may be granted only through a competitive selection process. Non-exclusive licenses may be granted either through a selection process or, on equal terms, to multiple licensees without a competition. Opportunity to review technology and technical documentation before obtaining a license Potential licensees may be given an opportunity to review an IP Object or technical documentation relating to products created using that IP Object under a non-disclosure agreement. The Procedure also permits potential licensees to manufacture prototype samples at their own expense. Right to grant sublicenses A license agreement may provide the licensee with the right to grant sublicenses to subsidiaries or other persons within the scope of rights granted under the main license. Consequences of non-use of IP Objects Failure to use an IP Object within the period specified in the license agreement entitles the licensor to terminate the agreement unilaterally. Recommendations For companies interested in cooperating with the Ukrainian defense sector, localizing production, participating in joint projects, or commercially exploiting technologies developed within Ukraine’s security and defense sector, the Procedure creates a mechanism for obtaining rights to use relevant IP Objects through licensing arrangements. Potential licensees should take into account state secret requirements, rules governing the protection of restricted-access information, and state controls on international transfers of military and dual-use goods, which may apply depending on the nature of the relevant technology or intellectual property rights. Contacts Oleksiy Stolyarenko Partner Baker McKenzie    Alla Smorodyna Associate Baker McKenzie

In brief

On July 2, 2026, a resolution of the Cabinet of Ministers of Ukraine came into force, approving the Procedure for the Issuance of Licenses (Permits) for the Use of Intellectual Property Objects Owned by the State Represented by the Ministry of Defense of Ukraine and Other Authorities Responsible for the Management of Military Property (the “Procedure“).

The Procedure establishes a mechanism under which the Ministry of Defense of Ukraine and other security and defense sector authorities may issue licenses for the use of intellectual property objects (“IP Objects“) whose proprietary rights are owned by the State. The Procedure aims to facilitate the practical use and commercialization of such IP Objects by granting usage rights to individuals and legal entities.

Key takeaways

• Availability of licenses to Ukrainian and foreign persons

Licenses may be obtained by Ukrainian and foreign legal entities, citizens of Ukraine, foreign nationals and stateless persons, except for persons subject to statutory restrictions, including sanctioned persons and persons associated with the aggressor state.

• Fee-paying and free-of-charge licenses

As a general rule, licenses are granted on a fee-paying basis. At the same time, the Procedure provides a simplified regime for granting free-of-charge non-exclusive licenses, particularly for the needs of the security and defense sector, state authorities, charitable organizations, and scientific research and experimental activities.

• Guaranteed remuneration for authors (inventors)

At least 25% of the funds received as payment for the use of IP Objects must be allocated to remuneration for the authors (inventors) of the relevant development. In addition, a portion of the funds must be allocated to the development of the units in which the relevant IP Object was created, as well as to further research, development and protection of intellectual property rights.

• Introduction of competitive selection for fee-paying exclusive and sole licenses

Exclusive and sole licenses for IP Objects may be granted only through a competitive selection process. Non-exclusive licenses may be granted either through a selection process or, on equal terms, to multiple licensees without a competition.

• Opportunity to review technology and technical documentation before obtaining a license

Potential licensees may be given an opportunity to review an IP Object or technical documentation relating to products created using that IP Object under a non-disclosure agreement. The Procedure also permits potential licensees to manufacture prototype samples at their own expense.

• Right to grant sublicenses

A license agreement may provide the licensee with the right to grant sublicenses to subsidiaries or other persons within the scope of rights granted under the main license.

• Consequences of non-use of IP Objects

Failure to use an IP Object within the period specified in the license agreement entitles the licensor to terminate the agreement unilaterally.

Recommendations

For companies interested in cooperating with the Ukrainian defense sector, localizing production, participating in joint projects, or commercially exploiting technologies developed within Ukraine’s security and defense sector, the Procedure creates a mechanism for obtaining rights to use relevant IP Objects through licensing arrangements.

Potential licensees should take into account state secret requirements, rules governing the protection of restricted-access information, and state controls on international transfers of military and dual-use goods, which may apply depending on the nature of the relevant technology or intellectual property rights.

Contacts