Advanced Manufacturing: Turning Innovation into Commercial Value

Advanced manufacturing is becoming increasingly important to the UK's industrial strategy, with government policy focused on encouraging investment, innovation and growth across strategically important manufacturing industries. 

For manufacturers, however, developing innovative technology is only part of the challenge. The commercial and legal framework surrounding that technology can be equally important.

A manufacturer developing a new production process, machine, component or automated system may create valuable intellectual property and know-how. Businesses should establish from the beginning who owns that IP and what happens when development work is carried out jointly with customers, suppliers, universities or external consultants.

Manufacturing contracts should also deal clearly with specifications, testing, acceptance, warranties, intellectual property, delivery, liability and change control.

Supply-chain contracts deserve particular attention where a manufacturer relies upon a small number of specialist suppliers. Clear provisions dealing with quality, delays, shortages, substitution and termination can help reduce disruption when problems arise.

There is also a growing relationship between advanced manufacturing and technologies such as AI, robotics, semiconductors and automation. The UK's AI Hardware Plan specifically identifies the importance of connecting innovation, investment, procurement and skills. 

For ambitious manufacturers, legal planning should therefore form part of the commercial strategy not something considered only when a dispute arises.

Our specialist business and commercial lawyers advise manufacturers and technology businesses on contracts, IP, commercial property, employment and strategic legal risk.