Standardisation in Rail: Unlocking IP Revenue Streams for Manufacturers?

The UK Rail minister is looking to push towards standardised rolling-stock designs. Could this reshape the industry - not just operationally, but commercially?

By reducing bespoke specifications and aligning features like accessibility and boarding levels, manufacturers have an opportunity to leverage intellectual property in new ways. Standardisation creates a potentially lucrative platform for IP licensing. Train builders could monetise their designs not just through their own sales and through tax benefits such as Patent Box, but could also generate additional revenue streams by granting third-party manufacturers access to their IP through structured IP license agreements. This could potentially generate recurring revenue while maintaining influence over quality and innovation. This mirrors successful models in electronics, automotive and aerospace sectors, where beneficial technologies are commonly shared between manufacturers.

For rail, the benefits are twofold: manufacturers gain predictable income from IP rights, and operators enjoy reduced implementation costs as there can be standardization in connected infrastructure, and potentially significantly simplified maintenance regimes. However, success can depend on balancing standardisation with innovation. Overly rigid standardized specifications can risk stifling technological progress, while well-structured IP licensing can incentivise continuous improvement. 

What do you think? Will the UK rail industry move towards a more unified design philosophy? Could you be the first manufacturer to seize this opportunity?

Our IP experts look forward to discussing your IP strategy with you.

The government wants UK requirements to be so consistent they influence manufacturers’ products for other markets. “If the UK is looking consistently for level boarding and for decent bicycle space and for decently comfortable seats, for example, I would like that to influence the standardised designs of trains that they build,” he said.

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