Our Defence, Security and Aerospace (DS&A) lawyers provide critical legal support to leading companies at all levels in the supply-chain. We have a detailed understanding of the issues facing businesses in the sector. Our knowledge and experience enable us to work in partnership with our clients to deliver focused and cost-effective advice and support.
The UK's Defence environment is supportive of and welcomes new entrants, particularly companies with established overseas businesses and those with cutting edge technology. Barriers to entry are low and the UK Ministry of Defence (MOD) has made clear its desire to work with dynamic new entrants to the UK, for example from the US, Europe and NATO ally countries. Committed funding for fast procurement of new Defence tech, confirmed in the UK's 2025 Strategic Defence Review, reinforces that aim.
The issues we advise on include:
- New entrant set-up and support:
Rapid and fixed price company incorporation (often possible within 24 hours of instruction) | Immigration advice for overseas businesses setting up in the UK | Navigating the UK's National Security & Investments Act (foreign direct investment control) | Basic operational set up advice (employment law support and advice on office and facilities leases / purchases) | Advice around MOD Security Aspects Letters (SALs) | Support with navigating MOD's and its agencies' procurement processes and contract terms | Corporate and investment legal support
- Large defence projects:
Acting for prime contractors, consortium members, SPVs, new entrants to the UK Defence market and SMEs on MOD procurements and similar projects | Advising on and negotiating (with MOD and supply chain parties) MOD DEFCON terms, MOD Standard Contract terms (SC2) and MOD bespoke contracts | Procurement Act 2023 advice | Outsourcing and sub-contracting arrangements | Assisting prime contractors and sub-contractors/consortium members to manage supplier side relationships | Ongoing contract management support and, where necessary, dispute resolution support
- Cutting edge Defence technology, cyber and broader digitisation:
Data ownership, management and exploitation | Use in the sector of AI, digital twins, simulation, VR and AR and associated critical regulatory implications | Drones and counter-drone technology | Ofcom frequency licensing | Secure comms, tactical advantage and intelligence tech procurements | Secure and battlefield cloud applications | Intellectual property (IP) ownership, strategy and protection | Advice to tech companies selling products or services into the DS&A sector | Strategic M&A including application of National Security and Investments Act | Joint ventures and corporate venturing with transformative technologies | Cyber and data attacks
- Corporate, finance and investment:
Venture capital and venture debt investment into DS&A sector businesses – investor side and company side | M&A – company and business sales and purchases for buyers and sellers | Debt finance transactions | Joint ventures | Private equity investments and management buyouts – seller side and management team side | Equity incentivisation schemes for employees | Company and group restructurings | Company secretarial and registered office services
- Regulated and Single Source Procurement:
Procurement Act 2023 and navigating public procurement processes | Early Authority engagement advice | Influencing procurement process to maximise chance of successful bids | Challenging procurement decisions | Single source defence procurement and dealing with the Single Source Regulator's Office (SSRO)
- Regulatory and ethical compliance:
Export control | Sanctions | Anti-bribery and corruption | Failure to Prevent Fraud (Economic Crimes and Corporate Transparency Act 2023) | Modern slavery | National Security Act 2023 | Failure to prevent tax evasion | Global compliance programmes to reduce the risk of falling foul of these (and other) regulatory controls | Social Value and net-zero obligations | Competition law and state aid | Health and safety | Greenwashing
- Supply chain management and business operations:
Manufacturing and supply agreements | Outsourcing and sub-contracting arrangements | DEFCON and SC2 contracts and advice | Collaboration agreements | Data ownership and management | Skilled workforce shortage mitigations | Distressed supply chain issues | Venturing/funding | Technology "dual use" crossover from Defence to civilian and vice versa | Energy and carbon reduction projects | Hydrogen technology and regulation | Technology-rich agreements | Intellectual Property (IP) ownership, strategy and protection | Employment and TUPE advice
Defence and Security
Russia's invasion of Ukraine has brought into sharp contrast how critical new technologies are for sovereign defence. AI, cloud computing, simulation, drones, cyber defence and related technologies are at the forefront of Defence and Security and the pace of technology change is not slowing.
The current high level of aggression by certain state actors, combined with the transactional nature of the current US administration's support to its allies, has brought a fundamental reassessment of Defence and Security priorities. The UK (and European and other allies) know that more self-reliance is essential. US support from a position of shared values is no longer a given, and protected Defence and Security spending has essentially increased across the board. A world where this was not necessary would be ideal, but governments do not have that luxury and must act pragmatically to secure the protection of their people and allies.
The UK, along with its allies, has been a staunch supporter of Ukraine. The UK's Taskforce Kindred has sourced materiel and cutting edge technology for supply to Ukraine, often at speed. That commitment is one of the reasons the UK is attracting new entrants, many of them developers of new tech, into the UK Defence and Security market. Providers, which are now often not traditional Defence suppliers, can make their offerings compelling if they align with key government drivers such as interoperability and sovereign capability.
Our team of DS&A lawyers combine deep knowledge of contracting in the Defence and Security sector with market leading expertise in assisting clients to protect and exploit their technology. This experience helps clients (both traditional and non-traditional Defence companies) to maximise their position, including in negotiations with MOD and other supply chain members. Our Corporate lawyers deploy this expertise in sector investments, acquisitions and disposals to ensure effort is directed to the key issues and to plot a deal strategy which aligns with the relevant regulatory and commercial landscapes. Osborne Clarke's focus on broader digitisation and decarbonisation drivers also means our advice is forwards looking and directly relevant.
Civil Aerospace
The Civil Aerospace sector is booming yet facing headwinds. Commercial aircraft orders are very healthy and delivery backlogs mean there is a clear pipeline for several years to come. However, the sector faces long term challenges. On the propulsion side, use of Sustainable Aviation Fuel (which reduces greenhouse emissions compared to traditional jet fuel) is increasing but it's unclear what the long term net zero propulsion solution will be. That has a knock on impact on what future airframes will be, meaning it is difficult for the industry to make longer term plans. Skilled worker shortages (many experienced people retired during the pandemic) and the changeable global trade environment, driven in no small measure by US tariffs, heap further complexity on OEMs and supply chain businesses.
Having bounced back after Covid, the Aerospace sector will of course continue to move forwards but it is essential that OEMs and supply chain companies monitor the performance of their suppliers and take early action to protect their interests, whether that is enforcing contract rights or, at the other end of the scale, investing in suppliers or securing alternative sources. Attracting and retaining skilled team members also helps to protect a business' future and using employment law creatively can help to drive employee engagement, job satisfaction and in turn continued success.
Experience
