In today’s competitive manufacturing landscape, intellectual property (IP) theft is a growing concern, particularly for businesses leveraging advanced CAD software like SolidWorks. With designs being the lifeblood of product innovation, safeguarding these assets has become a top priority.
From high-profile cases of stolen blueprints to escalating cybersecurity threats, the manufacturing industry faces unprecedented risks. This article outlines real-world examples of IP theft in manufacturing, discusses the impact on businesses, and provides ten proven steps to prevent these incidents in 2025. Entrepreneurs, CAD engineers, and IP professionals, this guide is for you!
The Growing Threat of IP Theft in Manufacturing
Intellectual property theft in manufacturing results in unimaginable losses. According to a Sealpath report on CAD design protection, 91% of data stolen in this sector comprises intellectual property and industrial secrets. Beyond financial damage, these incidents erode brand reputation, undermine competitive advantages, and pave the way for counterfeit markets.
One case involved a major SolidWorks user, where designs leaked through a subcontractor and later appeared in a competitor’s portfolio. Such breaches highlight the complexity of managing security across a multi-layered supply chain.
But all is not lost. By implementing practical strategies, manufacturers can minimize their risk.
Top 10 Steps to Prevent IP Theft in Manufacturing
1. Encrypt Sensitive CAD Files
Encryption is the first line of defense for protecting proprietary SolidWorks files. Even if files are intercepted, encrypted data becomes unusable without proper keys. Tools like Sealpath’s CAD protection solution offer advanced encryption techniques tailored to the needs of the manufacturing sector.
2. Leverage Access Controls
Limit access to critical designs based on the principle of "least privilege." Role-based access controls ensure that sensitive CAD files are only accessible to those who absolutely need them, reducing exposure to theft.
3. Audit Supply Chain Security
Many breaches occur because of vulnerabilities in the supply chain. Regularly assess vendors’ security practices, and create a contractual obligation for them to follow cybersecurity protocols. For insights, check out Sealpath's case studies on CAD design and supply chain protection.
4. Use Enterprise Digital Rights Management (EDRM)
A comprehensive EDRM system allows manufacturers to apply usage restrictions to SolidWorks files. This includes controlling how files are shared, disabling unauthorized printing, and embedding expiration dates for external access.
5. Implement Two-Factor Authentication (2FA)
Passwords alone are no longer enough. Adding a second layer of authentication helps secure digital workspaces where sensitive designs are stored or shared.
6. Use SolidWorks Defeature Tool
The Defeature tool in SolidWorks simplifies your CAD models by removing internal components or sensitive details. This ensures external collaborators only access what they need without risking your IP. Learn how to use this feature through Solid Solutions’ Defeature guide.
7. Monitor Data Sharing Activity
Tracking how and when sensitive CAD files are shared can identify suspicious behavior. Employ software that audits file usage and sends alerts for unusual activity.
8. Conduct Regular Security Training for Employees
According to a GoldSky Security report, insider threats contribute significantly to IP theft. Equip your team with knowledge on phishing risks, password etiquette, and safe sharing practices to reduce human error.
9. Invest in Cybersecurity Insurance
Even with stringent measures, no strategy is foolproof. Cybersecurity insurance can provide financial coverage for IP theft, helping businesses recover quickly from attacks.
10. Schedule Frequent Security Audits
Technology evolves quickly, and so do cyber threats. Regularly assess system vulnerabilities and update protocols to stay a step ahead of hackers and fraudsters.
Common Mistakes to Avoid
- Ignoring Third-Party Risks: Many companies assume their internal security measures are sufficient. However, 93% of manufacturing leaks can be traced to foreign or third-party attackers, as highlighted by Sealpath.
- Over-Sharing CAD Data: Providing complete SolidWorks files when only a specific part is needed increases your vulnerability. Always use model simplification tools.
- Failing to Monitor Behavioral Anomalies: Unusual download volumes or file access during off-hours are red flags that often go unnoticed until breach damage is done.
- Not Updating Software: Outdated CAD tools can become gateways for hackers. Regular updates ensure vulnerabilities are patched.
How These Steps Translate to Real-World Impact
Take the case of Dassault Systèmes SolidWorks, which actively combats software piracy and design theft. By implementing strict license control mechanisms, discussed in Harness IP’s SolidWorks anti-piracy case study, the company drastically reduced revenue loss from counterfeit licensing.
Similarly, manufacturing firms integrating encryption, EDRM, and Defeature tools protect their competitive edge while maintaining collaborative workflows.
AI Solutions: Simplify Documentation and IP Management
To save time and ensure airtight documentation, consider using AI tools to draft IP agreements, automate NDAs, and manage CAD documentation. Our AI article-writing tool can help startups by drafting technical security protocols and corporate governance policies in minutes. Try it now → if you want to streamline legal processes and keep your intellectual property secure.
Conclusion
IP theft is a multi-billion-dollar issue threatening the manufacturing sector, but this doesn’t mean your company has to be next. By implementing these ten proven steps to safeguard your SolidWorks designs and broader IP portfolio, you’ll be well-equipped to stay ahead of potential threats.
Remember, a stitch in time saves nine. Securing your intellectual property today prevents disastrous consequences tomorrow. Share this guide with your network, after all, protecting innovation is a collective effort!
FAQ on Preventing IP Theft in Manufacturing
1. Why is IP theft a big concern in manufacturing?
IP theft in manufacturing leads to massive financial losses, reputational damage, and the risk of counterfeit products flooding the market. 91% of stolen data in this sector comprises intellectual property and industrial secrets. Learn more about CAD data protection
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3. How can SolidWorks users protect their CAD files?
SolidWorks users can protect their CAD files through encryption, Enterprise Digital Rights Management (EDRM), and tools like the Defeature tool, which removes sensitive details from shared designs. Learn how to protect SolidWorks files
4. What role does the supply chain play in IP theft?
Supply chain vulnerabilities significantly contribute to IP theft risks. 93% of leaks in manufacturing sectors originate from foreign or third-party attackers. Regular audits and vendor reviews are essential. See how CAD security impacts the supply chain
5. Why is two-factor authentication necessary?
Two-factor authentication (2FA) adds a crucial security layer, ensuring that even if passwords are stolen, unauthorized access to sensitive data is prevented.
6. What is the benefit of using the Defeature tool in SolidWorks?
The Defeature tool simplifies CAD models by removing internal components or sensitive details, ensuring external collaborators only access what's needed. Learn how to use the Defeature tool
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8. How does cybersecurity insurance help against IP theft?
Cybersecurity insurance provides financial coverage for IP theft incidents, helping businesses recover quickly from attacks and managing litigation or recovery costs.
9. Are insider threats a real risk for IP theft?
Insider threats are a significant factor, often stemming from human error or deliberate actions. Regular employee training can mitigate such risks. Read about insider risks in manufacturing
10. How can regular audits protect against IP theft?
Frequent security audits help identify vulnerabilities, keep security measures up to date, and protect against rapidly evolving cyber threats. Learn how manufacturers benefit from security protocols
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond and launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about best hotels in Italy to work from.