Defence Technology Licensing from Ukraine

Obtaining a licence for a Ukrainian defence technology requires a valid grant of intellectual property rights by the Ukrainian rights holder or an authorised licensor. For any controlled export, the Ukrainian exporter must also obtain the appropriate authorisation from the State Export Control Service of Ukraine (SECS). Where the technology contains information classified as a state secret, the requirements for protecting that information also apply. Under the wartime procedure, technology is generally provided for use without assignment of IP rights and production is limited to agreed quantities; the export permit is subject to a fee, and supplies of manufactured goods to third states also entail payment of a statutory share of their value.

This article is intended for foreign manufacturers, defence companies and investors planning to license Ukrainian defence technology, set up joint production or enter into technology partnerships with Ukrainian developers. It explains how to verify who holds the rights, choose a contractual structure and identify the Ukrainian authorisations required before technical information is exchanged.

1. What Licensing a Ukrainian Defence Technology Involves

2. Who Holds the Rights to a Defence Technology

3. Licence Agreements and SECS Permits

4. Export Controls on Transfers of Defence Technologies

5. The Special Wartime Procedure for International Transfers

6. Licensing Technologies Owned by the Ukrainian State

7. Secret Inventions and State Secrets

8. Key Terms of a Licence Agreement with a Ukrainian Licensor

9. What Foreign Partners Should Check Before Production Starts

Frequently Asked Questions

How DLF Can Help

1. What Licensing a Ukrainian Defence Technology Involves

In this context, licensing means granting a foreign partner the right to use a technology within agreed limits.

The licence agreement specifies which IP assets, such as inventions, software, technical documentation or know-how, the licensee may use, how they may be used, and the applicable territory and duration. The foreign licensee should verify that the Ukrainian licensor is authorised to grant these rights.

Before any transfer, the parties must determine whether the technology and transaction are subject to state export control and whether a special procedure or statutory exemption applies.

2. Who Holds the Rights to a Defence Technology

A licence may be granted by the rights holder or a duly authorised person. Ownership depends on the type of IP, how it was created, the source of funding and contractual terms. Special rules under the Law of Ukraine “On Military Duty and Military Service” and the relevant IP legislation apply to work created by military personnel.

For a foreign licensee, this determines whether the Ukrainian counterparty can grant a valid licence.

The Law of Ukraine “On Defence Procurement” No. 808-IX provides for State ownership of production facilities and IP created with state funds as a result of defence procurement. Before licensing, a foreign licensee should ask the Ukrainian developer to distinguish its pre-existing developments from results created with state funds under the defence-procurement contract.

For developments created by military personnel, a foreign licensee should ask the Ukrainian counterparty for documents confirming ownership and the licensor’s authority to grant the licence.

3. Licence Agreements and SECS Permits

The Ukrainian exporter must obtain the appropriate SECS authorisation for the controlled export. The foreign partner should receive the controlled technical data only after that authorisation has been issued, even if the licence agreement has already been signed.

The Civil Code of Ukraine distinguishes, among other forms, exclusive, sole and non-exclusive licences. An exclusive licence is granted to one licensee and prevents the licensor from using the IP in the licensed field. A sole licence is also granted to one licensee, but the licensor retains its right to use the IP. A non-exclusive licence permits use by the licensor and licensing to others; it is deemed agreed unless the agreement provides otherwise.

Sharing drawings or source code, providing training and giving advice may constitute controlled transfers even where no equipment physically crosses a border.

A licence gives the partner a right of use within defined limits, while the economic IP rights remain with the rights holder. An assignment transfers those rights in full or to the agreed extent.

4. Export Controls on Transfers of Defence Technologies

The Law of Ukraine “On State Control over International Transfers of Military and Dual-Use Goods” No. 549-IV covers more than equipment shipments. Military technologies include specialised information, other than publicly available information, required to develop, produce or use military products or provide military services. It may be supplied as technical data or technical assistance. The latter includes training and technical consultancy; for dual-use technologies, the relevant control lists must also be checked.

The Ukrainian exporter applies for the SECS permit, which must cover the controlled transfer planned with the foreign partner.

Breaches of export-control requirements may result in fines and cancellation of authorisations.

5. The Special Wartime Procedure for International Transfers

A special procedure approved by Cabinet of Ministers Resolution No. 875 of 1 July 2026 has applied since 8 July 2026. It covers the following categories:

• military goods on the control list that have been adopted for service or codified as supply items;
• goods on the unified dual-use list that may be used to develop, produce or use military goods adopted for service or codified as supply items;
• unlisted goods subject to catch-all controls, where they have been adopted for service or codified as supply items;
• military technologies and technologies on the unified list of dual-use goods.

The application package for a permit includes documents establishing the legal basis or intention to transfer, state guarantees, the foreign participant’s eligibility, valuation and payment of the permit fee.

Drone Deal. If the importing state has concluded relevant international treaties or other bilateral instruments with Ukraine on defence production, supply or technology exchange, the application may be processed without review by the Interagency Commission on Military-Technical Cooperation and Export Control. Exceptions remain, including critical goods or technologies, partial embargoes and reservations arising from interagency coordination. The SECS permit and other mandatory clearances are still required.

State guarantees. The foreign partner needs a document containing state guarantees from the importing state confirming that the partner receives a right of use without assignment of economic IP rights or sale of the technology, subject to the exceptions in the procedure. Onward transfers of goods, technology, documentation or related services require prior written permission from SECS. Production is limited to the quantities and conditions set out in the contract. Information and results relating to modifications and improvements of the manufactured goods must be provided to Ukraine.

Permit fee. Issuing a technology-export permit under this regime attracts a fee. Its calculation is based on the quantity of goods whose manufacture is envisaged by the licence or another valid document and on defence-procurement prices. If no relevant procurement took place in the preceding six months, an expert opinion or valuation report is used. The permit fee is payable in Ukraine; the agreement should allocate its cost and specify how it is accounted for alongside the licence remuneration.

Transfers to third states. If the foreign partner intends to supply goods manufactured with the transferred technology to third states, prior written permission from SECS is required. The procedure also provides for payment of a statutory share of the value of the manufactured goods under the relevant contracts. The agreement with the Ukrainian partner should specify the approval process, calculation of payments and allocation of costs.

Minimum export value. The special procedure provides for exports of covered goods worth at least UAH 15 million (approximately USD 334,000 at the NBU exchange rate on 19 October 2026). Parts and components are exempt from this monetary threshold, but remain subject to the authorisation requirements.

6. Licensing Technologies Owned by the Ukrainian State

Two mechanisms apply to state-owned defence technologies: the Ministry of Defence’s experimental project and the procedure for licensing state-owned IP. The appropriate mechanism depends on ownership, the technology and its intended use.

The Ministry of Defence Experimental Project

The mechanism introduced by Cabinet of Ministers Resolution No. 1310 of 13 October 2025 concerns technologies developed within the Ministry of Defence, the Armed Forces and the State Special Transport Service whose exclusive economic rights belong to the Ministry.

Eligible Ukrainian manufacturers may use these technologies in Ukraine free of charge under a contract. Where several applicants seek the right to use the same technology, the Ministry grants it to each eligible applicant in the order in which their expressions of interest are received.

Under this experimental project, the Ukrainian Ministry of Defence may grant the defence ministry of a NATO member state the right to use the technology, including the right to sublicense and modify it. The agreement is concluded with that state’s government and/or defence ministry and may name foreign companies that are to receive the rights. The purpose may be to manufacture defence goods for transfer to Ukraine as military-technical assistance, or to improve goods, production or the technology, provided that the results are available to the Ukrainian Ministry of Defence. A private foreign company’s right to use the technology must be provided for in that agreement; being based in a NATO member state is not sufficient.

The Procedure for Licensing State Intellectual Property

Foreign legal entities may obtain licences to state-owned IP if the prescribed restrictions, including sanctions and aggressor-state links, do not apply. Cabinet of Ministers Resolution No. 834 of 17 June 2026 sets out how the Ministry of Defence and other bodies designated by law to manage military property grant licences to IP owned by the State, represented by those bodies. They may act directly or through authorised entities. Agreements with foreign recipients must comply with export controls; classified information remains subject to the state-secrets regime.

Exclusive and sole licences to IP for business use may be granted only through competitive selection. Non-exclusive licences may be granted without competition on equal terms to eligible applicants, unless the authority decides to hold a selection.

7. Secret Inventions and State Secrets

Where a technology contains information classified as a state secret, the Law of Ukraine “On State Secrets” No. 3855-XII applies. Neither an IP licence nor an export permit authorises disclosure of classified information.

Classified information or its physical carriers may be transferred to a foreign state or international organisation only on one of the following grounds:

• an international treaty to whose binding effect the Verkhovna Rada of Ukraine has consented;
• a written, reasoned order of the President of Ukraine.

Whether a Drone Deal instrument can provide a legal basis for transferring state secrets depends on its content and compliance with the special statutory conditions.

Foreign nationals may access state secrets in exceptional cases under an international treaty approved by the Verkhovna Rada of Ukraine or a written presidential order issued under the statutory procedure. Where a private foreign company is involved, the lawful grounds for its staff’s access and the information-security requirements applicable to the company must be established.

If a foreign investor intends to work with information classified as a state secret through a Ukrainian subsidiary, that subsidiary needs a permit from the Security Service of Ukraine (SBU) and must meet the organisational and security requirements. The permit is issued for no more than five years. It is not granted where the subsidiary’s head is not a Ukrainian citizen or lacks security clearance.

Secret inventions. Classifying an invention as secret does not make the State its rights holder. Ownership and the special rules of the Law of Ukraine “On Protection of Rights to Inventions and Utility Models” must be checked. Licensing a secret invention requires approval by the State Expert on Secrets and the recipient’s lawful access to the invention.

8. Key Terms of a Licence Agreement with a Ukrainian Licensor

The agreement must address the permitted use, territory, duration, remuneration and onward transfers. For a defence technology, those terms should be checked against export authorisations and state guarantees. Choosing foreign law for the licence agreement does not exempt the parties from applicable Ukrainian public-law requirements. These include export controls and necessary permits; the special wartime procedure where the transfer falls under it; state-secrets legislation where classified information is involved; and special rules on disposing of rights to state-owned technologies where the relevant mechanism applies.

Licence type and territory. The following default rules on licence type, territory and duration apply where the agreement is governed by Ukrainian law. A licence is non-exclusive by default if no type is specified. If the territory is not specified, the general rule limits the licence to Ukraine. The territory in which the foreign partner will manufacture must therefore be named expressly.

Duration. Under the Civil Code of Ukraine, if no term is agreed, the agreement generally runs for the remaining duration of the economic rights, capped at five years. If neither party gives written notice that it does not wish to renew the agreement six months before that five-year term expires, the agreement continues indefinitely. Either party may then terminate it on six months’ written notice, or on a longer agreed notice period. A licence does not extend the underlying IP protection period.

Sublicensing. The right to grant a sublicence must be agreed and the licensor’s written consent obtained. The licensee is liable to the licensor for the sublicensee’s acts unless the licence agreement provides otherwise. A sublicence is not always needed to engage a contractor: copyright legislation permits third-party assistance without sublicensing in certain circumstances.

State guarantees and improvements. For transfers under the special procedure, the contract should reflect the importing state’s guarantees concerning onward transfers, production quantities and provision of information about changes to Ukraine. Ownership and permitted use of improvements should be addressed in the agreement.

Retention or assignment of rights. The special procedure’s basic condition is a right of use without assignment of economic rights or sale of the technology. The procedure provides for exceptions, and assignments or technology sales may be considered by the Interagency Commission.

9. What Foreign Partners Should Check Before Production Starts

Before signing an agreement with a Ukrainian licensor, a foreign manufacturer or investor should check the following:

• Ownership. Ask the Ukrainian counterparty to document the rights holder’s title, the licensor’s authority, any state funding and compliance with the necessary registration procedures.
• Classification. Establish with the Ukrainian partner whether state secrets are involved, the legal basis for transfer and access, and any approval needed for a secret invention.
• SECS documents. Confirm which procedure applies and that the Ukrainian exporter obtains the required authorisation before transferring controlled technical data or beginning other controlled transfers.
• Importing state. Check whether the state importing the technology qualifies for the Drone Deal procedure and when Interagency Commission review remains necessary.
• Scope of use. Agree with the Ukrainian licensor the governing law, territory of production, quantities, duration and limits of use without assignment, or the lawful basis for another structure.
• Payments and onward transfers. Agree who bears the technology-export permit fee and how to secure prior permission from SECS for supplies of manufactured goods to third states under the applicable conditions.
• Subcontractors. Agree what rights the foreign partner may grant to contractors, whether a sublicence is needed and who is responsible for their actions.
• Sanctions screening. Screen the Ukrainian counterparty, end recipients, intermediaries, owners, managers and other participants under the applicable rules, and expect the Ukrainian side to screen the foreign partner and its owners in the same way.

Frequently Asked Questions

Who applies for the SECS permit?

The Ukrainian exporter carrying out the controlled transfer applies to SECS. The foreign partner must provide the Ukrainian exporter with the documents required for the particular transaction by the time the application is submitted to SECS. Where required by the applicable procedure, these include state guarantees of the importing state and evidence that the foreign participant meets the eligibility requirements. Under the special wartime procedure, ownership information must be provided where necessary to establish compliance with paragraph 10; there is no general requirement to submit every type of corporate document.

Can a foreign company manufacture products using a Ukrainian defence technology?

Yes, if it holds the appropriate use rights and the applicable authorisation and security requirements are met. The basic model is use without assignment of economic rights, supported by state guarantees and agreed production quantities, subject to the exceptions provided by the procedure.

Does the Drone Deal remove export controls?

No. It may remove Interagency Commission review of the application, but not the SECS permit or other required clearances. Even for a partner state, the Commission is involved in the cases specified by the procedure, including critical goods and reservations arising from interagency coordination.

What changes if the technology contains state secrets?

Additional rules govern disclosure of classified information and access to it. A transfer to a foreign state or international organisation requires a treaty approved by the Verkhovna Rada or a written, reasoned presidential order under the statutory procedure. Lawful grounds for individuals’ and private companies’ access must be established; licensing a secret invention also requires the State Expert’s approval.

Who owns work created by military personnel?

The general rule assigns economic rights in work created in connection with official duties to the State, represented by the body designated by law, unless the law provides otherwise. Rights in copyright works pass upon creation. For inventions, utility models and industrial designs, ownership and the licensor’s authority to grant the licence should be checked against the relevant documents. Moral rights remain with the creator.

How DLF Can Help

DLF advises foreign manufacturers, defence companies and investors on licensing Ukrainian defence technologies, including verifying the Ukrainian party’s rights, negotiating licence agreements and coordinating export-control, state-secrets and sanctions requirements with the Ukrainian partner. The related practice areas include intellectual property law and contract law.

Iurii Dynys, Counsel, Attorney-at-law, DLF attorneys-at-law.

Contacts: +380 44 384 24 54, info@dlf.ua.

This material provides general information. The application of the rules described depends on the particular transaction and requires a separate legal assessment.