The automotive industry is navigating a profound transformation, marked by electrification, software integration, alternative energy sources, and advanced safety technologies.
As vehicles continue to evolve, intellectual property (IP) becomes essential for securing competitive advantage, managing risk, and safeguarding innovation.
Here are five trends to watch in the automotive industry, alongside their IP implications and guidance on protective strategies.
1 - Electric vehicles EVs)
Sales of electric and hybrid vehicles have surged globally in recent years, with battery technology and recharging infrastructure taking centre stage in the technical evolution.
The transition from lithium-ion to solid-state batteries offers improved safety, faster charging and greater range.
Intellectual property in electric vehicle innovation
This area is rich in IP, with innovations spanning battery design, thermal management systems, and energy efficiency algorithms. The ability to secure proprietary rights in these technologies is particularly important in a sector where performance gains translate directly into commercial value.
2 - Software-defined vehicles (SDVs)
As vehicles increasingly rely on software to perform functions and perform various actions, such as braking, driving, steering, and adding functionality, code has become a core asset.
The software in SDVs must be regularly updated to ensure optimum vehicle performance, but this comes at a financial cost and can lead to overreliance on updates.
Intellectual property in software-defined vehicles
IP in this area is broad and can cover source code, machine learning models, vehicle operating systems, and, in some cases, user interfaces. The complexity of software ecosystems makes IP strategy crucial, particularly to ensure code ownership, avoid infringement, and maintain cybersecurity.
3 - Alternative fuels
There's a trend that runs counter to electrification. E-fuels such as e-kerosene, e-methane and e-methanol, which can replace conventional fuels used in the automotive industry, are gaining momentum.
These e-fuels, which are produced by synthesising CO2 emissions and using CO2-free renewable electricity, are expected to grow in popularity as the European Commission has authorised the sale of cars running on e-fuels after 2035, fuelling their uptake across the automotive industry.
Intellectual property in alternative fuel technologies
The processes behind their production, particularly catalysts, electrolysis techniques, and carbon capture technologies, are often the subject of patent filings and trade secrets.
Companies investing in e-fuels must consider the innovation and how to protect the know-how that makes production scalable and cost-effective.
4 - Connected vehicles
Connectivity enables a range of services, with in-vehicle infotainment being one of the most popular currently.
However, there is still plenty of innovation on the horizon, particularly in areas such as cybersecurity, artificial intelligence integration, voice recognition systems, and the production of larger, high-resolution screens.
Intellectual property in connected vehicle systems
Connectivity introduces significant opportunities for IP protection, especially in relation to telematics, communications protocols, cybersecurity frameworks, and AI-driven analytics. Contractual IP ownership and licensing clarity is also a key consideration with these systems collaborating with a number of cloud providers, telecom companies, and software vendors.
5 - Advanced security features
Innovations in safety features are always topical. The updated General Security Regulation (RGS) from the European Union in 2024 has mandated that the following technologies be installed in vehicles:
- Advanced driver assistance systems (ADAS)
- Enhanced crash-test standards
- Pedestrian and cyclist protection
- Intelligent speed assistance
- Data recording
Intellectual property in advanced automotive safety
Many systems underpinning these requirements rely on sophisticated sensor technology, AI models, and control algorithms. As such, companies can build strong IP portfolios around image recognition, sensor fusion, user alert mechanisms, and emergency intervention systems. These innovations contribute to compliance and offer commercial differentiation in an increasingly crowded market.
IP protection strategies at a glance
- Patent protection: Secure early patents for innovations in batteries, e-fuels, software, and sensors to ensure exclusivity and commercial leverage.
- Copyright and software licensing: Protect software architecture and source code through copyright, while ensuring open-source compliance.
- Trade secrets: Use NDAs and access controls to safeguard proprietary processes and confidential data that aren't publicly disclosed.
- Design rights: Register distinctive visual elements, like user interfaces and dashboards.
- Trademark protection: Protect branded features such as infotainment systems or safety platforms contributing to consumer recognition.
- Contracts and collaboration agreements: Clearly define IP ownership, licensing terms, and rights to improvements in all joint development or supplier contracts.
- Freedom-to-operate (FTO) analysis: Conduct FTO reviews to avoid infringement, especially in crowded areas like EV technologies.
- IP audits and portfolio management: Regularly review and align your IP assets with business goals, identifying unused assets and managing renewals efficiently.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
