"Every controlled environment system, from a new crop variety to an AI-driven irrigation platform, has potential IP value"

Innovation in­­­ Controlled Environment Agriculture (CEA) isn't just about growing smarter — it's about protecting the ideas that make those advances possible. As the industry evolves at the intersection of horticulture, energy, and digital technology, intellectual property (IP) has become one of the most powerful tools for securing long-term success.

"Every controlled environment system, from a new crop variety to an AI-driven irrigation platform, has potential IP value," says Bree Vculek, associate in Sterne Kessler's Biotechnology and Chemical Practice Group. "The challenge is knowing how and when to protect it."

© Sterne, Kessler, Goldstein & Fox PLLC Bree Vculek

The power of protection
CEA innovation is layered and interdisciplinary. It spans genetics, robotics, software, and data analytics — and each of those layers offers a different opportunity for protection. According to Richard Coller, the key is understanding that IP isn't just legal paperwork. "It's a strategic asset," he explains. "When aligned with your business goals, IP protection becomes part of your growth model, not an afterthought."

Utility patents, for example, are often the backbone of technical innovation in CEA. They safeguard how a system works — whether that's a nutrient delivery algorithm, an autonomous harvesting process, or a lighting schedule that reduces energy use. A well-drafted patent can block competitors from using the same technical method, even if the design looks different.

Plant patents and Plant Variety Protection (PVP) certificates offer another layer of defense. These are especially relevant for breeders developing new cultivars tailored for indoor production. "The genetics behind a high-yield leafy green or a disease-resistant tomato variety can be as valuable as any piece of equipment in a vertical farm," says Bree. "Protecting genetic and genomic innovation is vital to maintaining a competitive edge."

© Sterne, Kessler, Goldstein & Fox PLLCJean Selep

Design patents, though sometimes overlooked, can also play a role. The shape of a hydroponic tower, the aesthetic of a sensor housing, or even the look of a user interface can become part of a company's brand identity. In an industry where design influences both efficiency and marketability, those visual details matter.

Trademarks and trade dress help define a CEA company's presence in the marketplace. A recognizable name or logo can distinguish technology in an increasingly crowded sector. As Coller notes, "Your trademark is what your customers remember — it builds trust and loyalty, which are as important as technical performance."

And then there are trade secrets — the quiet backbone of many agtech companies. Proprietary nutrient blends, crop growth algorithms, or supplier databases can remain protected indefinitely, as long as confidentiality is strictly maintained. "Not everything needs to be patented," Jean Selep, also associate in Sterne Kessler's Biotechnology and Chemical Practice Group, adds. "Sometimes, the smartest move is to keep your innovation behind closed doors."

© Sterne, Kessler, Goldstein & Fox PLLCRichard Coller

Strategy over serendipity
Knowing which form of protection to choose — and when — depends on where a company is in its growth journey. For early-stage ventures, provisional patents offer breathing room. They secure a filing date while giving innovators up to a year to refine their invention, attract investors, or test the market before making larger financial commitments.

"It's about timing and focus," says Selep. "You don't need to patent everything at once. Start by protecting what's core to your business — the innovation that truly defines you."

Global ambition adds another layer of complexity. The Patent Cooperation Treaty (PCT) and Madrid Protocol provide pathways for protecting patents and trademarks internationally. "If you plan to sell outside your home country, you can't wait until after launch to think about international rights," Coller explains. "Filing early gives you options later."

A strong IP strategy often involves overlapping protections. A CEA platform might have a Plant Variety Protection certificate covering its variety, patent(s) covering its technology, a trademark for its brand, and trade secrets for its algorithms and data. "That layering creates resilience," says Bree. "If one layer is challenged, others may remain intact."

Collaboration with clarity
CEA is built on collaboration — between growers, universities, manufacturers, and technologists. But joint innovation can blur ownership lines. "The moment you start a partnership, you should have an agreement in place about who owns what," Selep cautions. "Good contracts protect relationships as much as they protect ideas."

IP discussions regarding ownership can feel uncomfortable in the excitement of innovation, but they prevent far greater challenges later. As Coller notes, "Defining ownership upfront keeps partnerships transparent and productive."

The IP mindset
In an industry moving as quickly as CEA, innovation often outpaces protection. But failing to secure intellectual property can mean losing control of it entirely. "Innovation is only valuable if it's defensible," Bree concludes. "A smart IP strategy doesn't just shield your ideas — it builds the foundation for sustainable growth. As the boundaries between agriculture, technology, and energy continue to blurevolve, the future of CEA will be shaped not only by how we innovate, but by how we protect what we create."