9 The Records Audit and Segregation Process, carried out as part of the separation of QinetiQ from DERA, involved auditing all intellectual property held by DERA so that QinetiQ was not unlawfully in possession of any intellectual property belonging to third parties. This exercise went beyond what was legally required. Elements of the defence industry, however, had significant concerns over the transparency of the process and the time allowed for them to confirm the correct treatment of intellectual property they had given to DERA before its successor was to become a competitor. The Department should ensure that in future privatisations, the defence industry is given adequate time to satisfy itself that all intellectual property has been treated appropriately prior to the business becoming a corporate entity. This can be achieved by engaging with industry during the process and reflecting the need to agree the treatment of intellectual property within the timetable for the transaction. This would be consistent with the Department's aspirations to promote 'closer working, greater trust [and] increased partnerships' with the defence industry as set out in the Defence Industrial Strategy.7
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7 Section A8.1, Defence Industrial Strategy, Defence White Paper, published December 2005.