The new challenges of organizing intellectual property in complex industries: A discussion based on the case of Thales

• New organizational arrangements for IPR.
• Thales outsources its intellectual property management.
• Questions about the way in which companies may undertake innovation and IP policy in the high-tech industries.
• New division of labor: between the technological and strategic capabilities on one hand and the administrative and legal capabilities on the other.

The defense industries in France and elsewhere have, in recent years, undergone important technological, organizational and institutional changes that have profoundly altered their architectures. These changes have introduced a new division of labor bringing new opportunities for interaction leading to the creation of additional assets. In this context, the issue of protecting innovations and their exploitation has become central. Managing intellectual property rights (IPR) requires industrial groups to draw on additional capabilities. This article analyzes these evolutions and focuses in particular on the new organizational arrangements that have accompanied them. Using the case of Thales, which in 2005 outsourced its Intellectual Property (IP), we answer questions such as: why should IP be outsourced; how should the outsourcing of IP activities be organized; and, how should capabilities involved in this new organizational arrangement be managed. These issues lie at the center of this research and illustrate new challenges inherent to in-house and outsourced IPR management strategies.