OFGEM SIF GUIDANCE

IP Regime Overview

The Strategic Innovation Fund (SIF) Intellectual Property (IP) Regime explains how energy innovation projects manage intellectual property, covering ownership, licensing, access and revenue sharing to support collaboration, replication and fair use across energy networks.

Step 1

When applying for SIF funding, the project registration information will need to detail the expectations of any ‘foreground IP’ that will be generated from the project.

Step 2

Any contract between the energy network and partners should record the requirement background IP, foreground IP and relevant relevant foreground IP (any foreground IP needed to implement the method(s) developed/demonstrated as part of the project.

Step 3

The project plan needs to be detailed enough to enable third parties to see if they need to use the foreground IP that is generated by the project.

Energy networks must consider the long-term value to all consumers.

The project consists of the research, development and demonstration of the method to implement the foreground IP.

Step 4

Background IP refers to all the IP owned or licensed by a participant at the start of a project, that they provide for use in the project.

Each party must ensure its background IP does not infringe any third party IP.

Step 5

Each party will retain ownership of its background IP and provides a non-exclusive licence to other parties solely for the project (both during the project and afar, to the extent needed to use the foreground IP). 

Step 6

Foreground IP refers to the unique output of the project. 

Each party will own the foreground IP they create. 

Foreground IP must be protected, maintained and made accessible. 

Step 7

If foreground IP is created jointly, it’s shared in the proportion of the contribution.

Step 8

All other energy networks have the right to use the foreground IP in their network on a royalty free basis. They must allow access by third parties to the foreground IP.

Step 9

Knowledge and learning from the project must be shared with third parties. This must enable a third party to reproduce/simulate the outcome of the project. Knowledge dissemination is intended to reduce the cost, difficulty and time involved in similar projects.

Step 10

The energy network must return gross revenue from royalties/income generated through the foreground IP (less than SIF direct costs).

The IP conditions apply to any future owner of the foreground IP. 

Any sale of the foreground IP must reflect its true commercial value. 

Please note

This IP regime overview is created by the Energy Innovation Centre (EIC) to assist innovators, but is not an official Ofgem resource. It’s intended for reference purposes only and we recommend you review the latest SIF guidance.

There can be some deviations from the standard IP regime, where permitted in the SIF guidance or where approved by Ofgem.