Exploration and development of oil and gas reserves increasingly requires costly, tailored technologies and enhanced safety and environmental measures. This is due in part to greater desire to develop unconventional oil and gas resources, such as shale gas and tight oil, and to develop reserves in more remote and environmentally-sensitive areas. Exploration and production companies have been developing deepwater reserves, shale plays, and other unconventional sources, but many lack the infrastructure to gather and process the resulting oil and gas. As a result, the industry has seen a rise in joint ventures between upstream and midstream companies that have the capacity to transport and store gas or crude oil, as well as joint ventures between two or more upstream companies.
Although joint ventures can help companies spread capital costs, overcome technological limitations, and mitigate risks, they also create potential pitfalls for companies with intellectual property assets. Additionally, joint ventures can lead to development of new innovations, and disputes may arise as to who owns the resulting intellectual property and has the right to use it. In this article, Finnegan attorneys Jennifer H. Roscetti and Charles T. Collins-Chase discuss the potential perils of joint ventures for oil and gas companies' intellectual property portfolios and discuss strategies to protect patents and trade secrets when entering these agreements.
Originally published in Law360
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