Sportstech and the IP frontier: how do you protect sportstech innovation in the digital age?

While traditional revenue streams remain robust, a recent report from Morgan Stanley shows that the industry could unlock an additional 25% in annual revenue simply by closing its digital adoption gap. This adds up to a staggering $130 billion.  As Intellectual Property (IP) lawyers who specialise in sportstech, we know unlocking this opportunity this is not just about advising clients on the value of technology. It is about helping innovators identify, protect, commercialise and scale transformative solutions in an increasingly complex ecosystem.

Despite its global reach, sport has arguably lagged behind other industries in adopting digital technologies. For example, Morgan Stanley highlights that only around 30% of sports organisations currently use technology to personalise marketing compared with far higher adoption rates in sectors such as retail. This gap reflects not only cultural conservatism but also heightened legal and commercial risk; however, these are the risks that can stall innovation when IP strategy is an afterthought rather than a foundation.

Understanding the sportstech landscape

That being said, technology adoption across sport is accelerating. There are several recent examples of this:

• AI and machine learning for performance analysis, injury prediction, officiating and fan engagement;
• Data platforms capturing athlete biometrics, fan behaviour and operational insights;
• XR, AR, and VR for training, broadcasting and immersive fan experiences;
• Smart venues optimising operations and personalisation;
• Digital content and gamification including interactive broadcasts and esports.

Each of these solutions relies heavily on IP comprised within it, from software code and data, to branding and user experience design. As competition intensifies, IP will be a primary differentiator between scalable platforms and short-lived tools.

Identifying hidden value: understanding the IP you have

Before protecting or commercialising any idea, sportstech innovators must begin by identifying what IP they have and just as importantly, what IP they may be missing. In fact, we very recently spoke at the GSIC summit. We began by asking our audience– all of whom were sportstech innovators – how many had IP in their businesses. The positive responses were few and far between so we quickly qualified that every sportstech business has some IP. You just need to know where to look!  

In our experience missing the ‘identify’ stage is where significant value is so often overlooked and can even potentially be lost. Admittedly, identification is made less straightforward because innovation in sport rarely happens in neat silos. Algorithms are refined during live deployments, datasets evolve through athlete and fan use and product features are shaped by coaches, analysts and fans. As a result, many valuable IP assets are created informally and as a result, are born without the required strategic oversight and capture processes.

Founders typically recognise obvious IP such as software platforms or hardware, but often overlook:

• Proprietary algorithms and AI models, particularly those developed iteratively during pilots or trials;
• Curated datasets and data structures, including training data and performance benchmarks;
• Processes and technical know-how, from sensor calibration to data interpretation methods;
• UX design and fan interaction flows, which can be central to differentiation; and
• Early-stage brand assets, which can quickly accrue value once partnerships or pilots succeed.

Without specialist input, ownership gaps can arise, particularly if clubs, leagues, athletes or third-party developers are involved. This is where a sportstech-focussed IP audit really pays off. It forces hidden assets to the surface, clarifies ownership and aligns legal strategy to commercial goals.

This IP foundation is critical to establish before you consider moving to formal protection, licensing or seeking investment.

Protect what matters

 Once your IP has been properly identified, protection becomes paramount.

Patents play a crucial role in safeguarding hardware innovation and novel technical solutions, from wearable sensors to AI-driven analytics engines. However, patenting sportstech - particularly where AI is involved - requires careful drafting to meet European eligibility thresholds and emphasise technical contribution.

Trade secrets and data rights are equally important.  Proprietary datasets and performance model scan be protected through robust governance, contractual controls and cyber security measures. As data regulation tightens globally, clear ownership and compliance frameworks are essential.

Copyright protects software code and digital content while trade marks secure the brand and brand identity (undoubtedly key IP in a sportstech business).

Together, these rights form a layered IP strategy that protects market position.

Commercialising sportstech safely via your IP strategy

Effective IP protection facilitates commercialisation.

Licensing agreements with clubs, leagues, broadcasters and sponsors must clearly define scope, territory, data usage and revenue models. Joint development arrangements require particular care, as co-created IP can otherwise become a source of dispute.

As institutional capital continues to flow into sportstech, IP due diligence has become central to investment and M&A. A well-structured IP portfolio signals credibility, reduces risk and assists with the valuation process.

IP can be sportstech’s competitive advantage

Morgan Stanley’s analysis makes one point very clear. The future growth of sport depends on technology adoption. But technology alone is not enough. Without a coherent IP strategy, innovation remains exposed and undervalued.

For sportstech innovators, IP is not merely a legal safeguard, it’s not a compliance exercise and it’s not something you can come back to later. IP is a commercial asset. IP is your competitive advantage. Specialist legal guidance ensures that innovation is not only protected, but positioned to scale, generate revenue and define the next era of sport.

If you are involved in this exciting sector and would like to explore any of these points or learn more about Kick-StartiP, our straightforward fixed price and fixed outcome IP audit, please contact us today.