In the mining and resources sector, intellectual property (IP) is often the hidden engine behind innovation, efficiency, and competitive advantage. Whether it’s proprietary software, data models, or specialist processes, IP plays a critical role in how businesses operate and grow. Yet, many professionals and business owners in this industry overlook the importance of protecting their IP, especially when it comes to contracts.
As legal advisers working with mining and resources clients, we’ve seen how IP can either be a source of strength or a point of vulnerability. The difference lies in how it’s structured, protected, and negotiated.
A Mining Tech Entrepreneur’s Journey
Steve, a client we worked with, owned a specialised software services firm that developed custom solutions for large multinational mining companies. His work was highly technical and built around proprietary software – IP he had developed over many years.
Despite the complexity of his business, Steve had never sought legal advice on contracts, warranty claims, or IP protection. That changed when he turned 50 and began planning for retirement. His financial adviser quickly recognised that Steve’s personal assets could be at risk if his business faced legal claims. More importantly, Steve’s IP wasn’t properly protected, which could jeopardise both his financial future and his long-term goal of completing a PhD based on the software he had created.
Steve needed a legal strategy that would secure his financial future, and allow him to sell his business without interfering with his future plans.
You can read more about Steve in our Case Study
Why IP Contracts Are Changing
The legal landscape around IP is shifting rapidly. Scams targeting IP rights are becoming more sophisticated, especially in industries like mining and resources where proprietary technology is highly valuable. Fraudulent licensing requests, deceptive trademark filings, and fake domain transfers are becoming increasingly common. These scams often exploit gaps in contracts or unclear ownership structures.
At the same time, privacy laws are evolving. The Australian Government’s response to the Privacy Act Review introduces a “fair and reasonable” test for data use – even when consent is given. This has major implications for companies using AI, data analytics, or software tools. Contracts now need to reflect not just what’s legal, but what’s ethical and transparent.
For mining and resources professionals, this means IP contracts must be more than just boilerplate documents. They need to be strategic tools that anticipate threats, align with regulations, and support long-term business goals.
Structuring for Protection and Flexibility
When we first met Steve, his immediate concern was risk mitigation. He needed to know what would happen if his business faced a creditor claim. Would his personal assets be exposed? Could he separate his IP into a different entity? Could he continue working after selling the business? And most importantly, could he retain his IP without affecting the sale value?
These are the kinds of questions that require a multidisciplinary approach. Working closely with Steve’s financial adviser and accountant, we developed a strategy that addressed legal, financial, and tax considerations.
We began by reviewing all existing contracts and identifying potential risks. Then we advised on restructuring the business so that Steve’s IP could be held in a separate, non-operating entity. This gave him greater control and reduced exposure.
When an unexpected trade offer came in – much sooner than anticipated – we shifted gears and focused on the sale transaction. Our goal was to protect Steve’s interests while ensuring the deal went smoothly.
We negotiated terms that allowed Steve to continue working for the purchaser post-settlement, with a remuneration package that supported his lifestyle and academic ambitions.
Finally, we worked with the accountant to set up asset-holding structures that would shield Steve and his wife Jane from future legal challenges, while also allowing them to make tax-effective distributions to their adult children.
What Mining Professionals Can Learn
Steve’s story is a powerful reminder that IP isn’t just a technical issue – it’s a strategic one. And the contracts that govern IP must reflect that.
If you’re a business owner or executive in the mining and resources sector, here are a few key takeaways:
Start early. Don’t wait until you’re ready to sell your business to think about IP protection. The earlier you act, the more options you’ll have.
Think holistically. Legal advice works best when combined with financial and tax planning. A coordinated team can spot risks and opportunities that might otherwise be missed.
Be proactive. Review your contracts regularly. Update them to reflect new laws, technologies, and business realities.
Protect your legacy. If your IP is part of your long-term vision – whether that’s academic work, future ventures, or estate planning – make sure your contracts support that vision.
Looking Ahead: IP in a Tech-Driven Mining Sector
As the mining and resources industry becomes more tech-driven, the value of proprietary software, data models, and automation tools will only grow. Protecting these assets isn’t just good business – it’s essential.
We increasingly recommend regular reviews of intellectual property (IP) portfolios to ensure they remain aligned with evolving business strategies, technological advancements, and regulatory requirements. These reviews help identify gaps in protection, opportunities for commercialisation, and risks associated with outdated or poorly structured agreements.
There is also a growing emphasis on cross-disciplinary legal strategies that bring together corporate structuring, licensing, and compliance particularly in light of recent changes to privacy and data laws in Australia. This integrated approach ensures that IP protection is not handled in isolation but is embedded within broader business and legal frameworks.
Today’s IP contracts must go beyond traditional concerns of ownership and licensing. They should also address:
- Data ethics and responsible use of information
- Algorithmic transparency, especially in AI-driven tools
- Cross-border compliance with international IP and data regulations
To remain effective, these contracts must be flexible enough to accommodate future innovation, yet robust enough to withstand legal scrutiny in a rapidly changing environment.
At Resources Unearthed, we’re committed to helping professionals in the mining and resources sector navigate this complex terrain. Whether you’re preparing for a business sale, launching a new venture, or simply reviewing your contracts, the right advice at the right time can make all the difference.
If you’re facing questions like Steve did – about risk, IP, and the future – don’t hesitate to seek out experienced legal advisors who understand the unique challenges of your industry. Your intellectual property is too valuable to leave unprotected.
For advice about IP and contract law or to arrange a time to meet with Craig Hong please call 61 (0) 7 3007 2000 or email contact@resourcesunearthed.com.au.
To learn more about Craig visit this link.
Resources Unearthed is a solutions hub that provides integrated financial, legal, property, accounting and business advisory services for executives, professionals and business owners in the mining and resources sectors.
The information in this article is intended only to provide a general overview and has not been prepared with a view to any particular situation or set of circumstances. It is not intended to be comprehensive nor does it constitute legal advice. While we attempt to ensure the information is current and accurate, we do not guarantee its currency and accuracy. You should seek legal or other professional advice before acting or relying on any of the information in this blog as it may not be appropriate for your individual circumstances.
