Value capturing: The role of intellectual property in the floating offshore wind industry

Overcoming technical challenges and driving innovation

The complexity of deploying and maintaining floating structures, particularly in harsh offshore environments, poses numerous technical challenges. Ongoing innovations in design, materials, and installation methods are crucial to address these obstacles, and ensure the technology becomes fully commercially viable.

Intellectual property as a tool for securing long-term value and market position

Intellectual property (IP) provides a legal framework for protecting new solutions over a longer time period. Accordingly, IP rights, including patents, serve as valuable assets. In the context of floating offshore wind, patents can encompass a wide range of technological breakthroughs, from novel anchoring systems and electric power distribution to advanced materials and tower designs. By obtaining intellectual property rights, companies can strengthen their market position, positioning themselves as key players for years to come.

Enhancing company value through IP

IP rights, especially patents, not only protect a company’s innovations but also demonstrate its technological capabilities and industry leadership. This can be particularly appealing to investors, partners, and customers, who view a robust patent portfolio as a clear indicator of a company’s potential for growth and success.

While the industry has evolved significantly in recent years, it remains relatively young. Consequently, there are still notable “white spots”, meaning key technical solutions that have yet to be developed, and the bar for obtaining a patent may be lower in these technical areas. The problems being solved in these areas are new, leaving few existing solutions for comparison when assessing patentability.

Some technical solutions may appear simple in hindsight but can be extraordinarily valuable. Consider, for example, the key lock feature on older Nokia phones. That solution addressed a new problem of pocket dialing, proving to be both remarkably simple and highly valuable. Similarly, in the floating wind industry, new solutions can yield significant long-term value even when they seem straightforward.

Territorial scope of patents in offshore areas

As many floating wind and aquaculture installations lie far beyond traditional territorial waters, it is not always certain whether national patent laws apply. Although the offshore oil sector has developed mechanisms to enforce patent rights beyond the 12-nautical-mile limit, emerging industries – such as floating wind and offshore aquaculture – still lack clear legal frameworks. A recent case in the United Kingdom exemplifies this ambiguity: in 2023, Siemens lost a patent-infringement lawsuit after the court determined that British law did not extend to wind turbines situated within the nation’s exclusive economic zone.

Our attorneys provide guidance on these complex issues to ensure that patented innovations can be effectively protected. By recognizing the intricacies of maritime law and adjusting IP strategies proactively, companies can secure enduring value and maintain a competitive edge in the evolving offshore sector.