Watch or read any news source, and the severity of today’s global supply chain problem becomes abundantly clear. A nightmare combination of factors has led to the present crisis—including COVID-19 reducing production rates, labor shortages impairing transportation capacity, and many others. Moreover, the prevalence of “on demand” or “just in time” manufacturing principles and the global nature of today’s economy contribute to the domino effect. The end result is that most companies are experiencing tremendous supply chain problems. What companies may not realize, however, is that this challenge also presents a potential intellectual property win.

As many companies urgently investigate alternative sourcing for their finished goods or components, the process—if approached strategically (versus reactively)—may present an opportunity to improve the client’s competitive posture by strengthening its IP portfolio. That said, developing additional supply chain resources is certainly a wise business practice, but due care should be taken to carefully consider and address potential intellectual property issues.