Balancing Access and Protection: A Decision Framework for Additive Manufacturing Intellectual Property Rights in Defense Acquisition

Abstract

This research addresses the challenge of managing intellectual property (IP) rights in defense additive manufacturing (AM) acquisition. Specifically, the Department of Defense must balance operational requirements for IP access against defense industrial base companies’ interests in protecting valuable IP assets. We introduce a decision framework to navigate IP complexities in AM applications, encompassing scenario screening, AM lifecycle analysis, IP asset identification, and strategic considerations for acquisition. The framework employs real options theory to provide acquisition professionals with structured guidance while maintaining strategic flexibility, demonstrated through a “Demand Surge” vignette examining a scenario where the DoD must rapidly increase the supply of a proprietary respirator mask beyond the original equipment manufacturer’s production capacity during a crisis. Our results indicate that effective IP management in defense AM requires careful consideration of mission requirements, technological capabilities, and stakeholder interests, revealing critical decision points in the AM lifecycle where IP strategy significantly impacts program success. This research contributes a systematic approach to IP strategy development, promoting both fair compensation for IP holders and sustainable defense capabilities while identifying avenues for future research.