Investing in Ukrainian MilTech: How to Protect Your Intellectual Property

Ukraine’s military technology sector is undergoing a fundamental transformation at this time of full-scale war. From improvised innovations on the battlefield to scalable dual-use technologies, the Ukrainian defence industry is becoming increasingly attractive for investors. Yet with opportunities come risks—especially in the realm of intellectual property (IP) protection.

This article offers a strategic introduction for investors, developers, and stakeholders in Ukraine’s MilTech ecosystem. It outlines the key principles, risks, and emerging tools for IP protection within Ukraine’s unique defence context.

The rise of Ukrainian MilTech Innovation in Ukraine’s defence space is born out of necessity. Combat-tested solutions have become a hallmark of Ukrainian resilience. Technologies such as FPV drones, electronic warfare systems, AI-powered targeting algorithms, and battlefield decision-making platforms have rapidly evolved from garage-built prototypes into strategic assets.

What sets Ukrainian MilTech apart is the direct integration of battlefield experience into R&D. Many developers are active-duty soldiers or veterans with deep understanding of real-world needs. Conversely, others who were involved in development before the war have since gained combat experience. This feedback loop significantly accelerates the innovation cycle.

Moreover, Ukraine’s tech culture—with strong traditions in mathematics, programming, and engineering—has been fused with military urgency. Hackathons, drone competitions, and testing grounds have become part of the everyday fabric of this environment.

Government support, alongside grassroots initiatives, has helped shape a unique MilTech sector—still largely informal but brimming with ideas. Start-ups, NGOs, and military units often collaborate off-the-record, sharing knowledge and iterating solutions to meet specific operational needs. Defence-tech incubators are beginning to appear, offering mentorship and government-backed guidance.

For investors, this landscape presents both a promising opportunity and a complex challenge. On the one hand, there is real potential for rapid returns and access to global markets. On the other, the lack of formal structures in early-stage development makes verifying IP ownership and conducting legal due diligence difficult. Determining who created a piece of technology, under what status, and under which conditions is becoming critically important. 

The State of IP: A System in Transition

Historically, Ukraine was viewed as having weak IP protection and low investor trust—though that perception is now being increasingly challenged. Significant changes have begun to take root since 2022.

As of early 2025, the Ministry of Defence established a dedicated department for IP management and launched an initiative to protect the rights of military inventors. Key elements include:

• Official recognition of authorship for service members;
• State oversight over commercial use and licensing.

These steps aim to not just acknowledge the contributions made by inventors but to bridge military necessity with market potential. The creation of a specialized IP department within the Ministry of Defence is a sign of institutional maturity that could serve as a foundation for investor trust.

Still, these reforms are in progress. The most pressing gaps arise in hybrid projects developed jointly by military personnel and civilian teams. These “grey zones” complicate matters for ventures seeking foreign investment.

Furthermore, although legislation is improving, practical enforcement depends heavily on courts and state institutions. Skepticism will persist until several high-profile cases result in successful legal protection for inventors or investors.

Investor Risks: Navigating the IP Landscape

When evaluating MilTech ventures in Ukraine, IP-related risks typically fall into several categories:

• Ownership Clarity: Many projects result from informal collaboration between soldiers, volunteers, and engineers. Without formal agreements, disputes over rights are commonplace. Some developments involve dozens of contributors across institutions with no unified legal structure.
• Legal Grey Areas: Technologies developed within state structures (military units, universities) raise questions of ownership; does it belong to the author or the state?
• Documentation Deficiency: In wartime, NDAs, MOUs, and structured development logs are rarely used. This increases the risk of future disputes and potential asset devaluation.
• Risk of Duplication: Weak IP protection raises the risk of technologies being copied by competitors, allies, or even hostile nations. Once a system is deployed, it can often be filmed, reverse-engineered, and replicated.

What Investors Can Do Now

Despite the risks, investors are able to take practical steps to safeguard their interests in Ukrainian MilTech:

• Conduct Thorough Origin Audits: Trace the technology’s development history. Who built it? With what resources? Were any aspects published or registered?
• Use Private Agreements: Contracts between parties (licenses, revenue-sharing, partnerships) can provide a baseline of protection. These are legally binding and can serve as evidence in disputes.
• Engage Local Legal Experts: Ukraine has few legal professionals with defence IP expertise — but their value is significant. Engage them on early stages.
• Document Everything: Encourage teams to record development stages and individual contributions. Even emails and sketches can help establish authorship.
• Consider IP Insurance: Some global firms offer limited IP insurance for high-risk markets. While still a niche product—and relatively new in Ukraine —this can be a useful tool for risk diversification.

The Role of the State and Reforms That are Under Way

The Ukrainian government recognizes that long-term investment requires credible IP protection. Recent initiatives include:

• Launch of a “single window” for registering military developers’ IP;
• Draft bills clarifying ownership of inventions made while doing military service;
• Digitization of the patent system in partnership with Ukrainian National Office for Intellectual Property and Innovations (UANIPO) (successor to Ukrpatent);
• Strategic dialogues with investors.

These efforts are part of a broader vision to position post-war Ukraine as a hub of defence innovation. Harmonizing Ukraine’s IP framework with NATO standards is also under consideration, paving the way for joint ventures with Western partners.

The Dual-Use Dilemma

Many MilTech solutions hold promise for civilian applications. This creates monetization opportunities but also complicates legal strategy. Investors should assess:

• Export controls (both in Ukraine and partner countries);
• Whether separate IP filings are needed for civilian variants;
• Whether partners are aligned on commercialization strategy.

Reputational risks must also be weighed up. A civilian brand based on military innovation must be sensitive to public perception and legal standards. At the same time, these products often outperform commercial alternatives in terms of reliability.

In order to avoid future conflicts, rights for military and civilian applications should be clearly separated—legally, financially, and organizationally—from the outset.

Illustrative case studies: Combat Situational Awareness Dashboard

A compelling case illustrating the current legal and structural challenges in Ukraine’s MilTech landscape involves the development of a combat situational awareness dashboard. This system was designed to enhance mission planning, coordination, and execution by visualizing data related to enemy activity and battlefield conditions in real time.

The project emerged from a productive collaboration between active-duty soldiers, who contributed critical operational insight, and a civilian technology company, which developed the software and analytics tools. This cooperation has been smooth and constructive, with both parties aligned on the system’s strategic importance.

However, despite the dashboard’s battlefield-proven utility, its broader implementation across Ukraine’s defence forces has faced delays. The key issue is the lack of a formal agreement defining ownership, usage rights, and responsibilities — a gap that complicates institutional adoption, integration into official military infrastructure, and potential commercialization.

This situation reflects a broader pattern in the sector: even when there is goodwill and alignment between stakeholders, the absence of legal clarity around intellectual property can become a barrier to scaling and investment. Without proper frameworks in place, promising solutions risk stagnating at the prototype or unit-level deployment stage, limiting their strategic impact.

Looking Ahead: A Strategic Bet

As Ukraine transitions from survival to strategic development, the MilTech sector offers a first-mover advantage for investors. But success depends not just on capital—but on readiness to engage with IP realities.

Systems are still evolving, but those who help shape the rules, establish standards, and to build trust now are likely to reap long-term rewards. This is more than a market entry—it’s an opportunity to co-create the next-generation of the defence industry.

Investors who bring best practices, legal culture, and a long-term perspective can become architects of a new model. Their reward will go beyond financial returns—they will gain access to technologies that could define the future of global security.

Conclusion

Investing in Ukrainian MilTech is not for the faint of heart. It requires patience, adaptability, and a high tolerance for uncertainty. But for those who view intellectual property not just as a risk, but as a shared opportunity to help build a new security economy, the payoff could be extraordinary.

This article is just the beginning. In future publications, we will dive deeper into legal tools, real-world case studies, and proven best practices.

The signal is clear: Ukrainian MilTech is taking off. The question is no longer whether to get involved—but how.