Formula 1's Next Engine Formula: Power, Politics, And Patents

Formula 1 is on the cusp of a significant transformation, with the sport considering drastic changes for its next set of engine regulations. Ethan Silverstone, patent attorney and former F1 engineer, considers the strategic IP decisions going on behind the scenes.

2026 will see the introduction of a new engine formula in F1, an iteration on the current hybrid system with increased efficiency and, for the first time, a 50-50 split between the electrical and internal combustion power sources. However, the sport's focus is already shifting to the next generation of engines, and rumours of a radical revolution - the return of V10 engines - have been surfacing in the paddock. Negotiations over the 2030 engine formula are about more than success on track: it's a battle of philosophies, strategic interests, and, crucially, intellectual property.

V10s VS. HYBRIDS: WHO STANDS TO GAIN?

The current discourse sees a divide between teams and manufacturers. Red Bull's Team Principal, Christian Horner, has expressed a "purist" desire for V10 engines powered by sustainable fuels, citing the cost and complexity of hybrids. Reigning World Champion Max Verstappen has echoed his boss's sentiments, admiring the "pure emotion" of V10s. Ferrari's F1 chief Fred Vasseur has also hoped for the return of V10 or V12 engines "one day".

On the other hand, Mercedes, Audi, and other manufacturers are firmly committed to continuing with hybrid engines. Mercedes' Toto Wolff argues that discussing V10s is premature and risks diluting the positive environmental messaging around F1's hybrid engine technology. Audi's entry into F1 was predicated on the 2026 regulations, particularly the focus on increased electrification.

This divide stems from strategic interests. Automotive manufacturers like Audi and Mercedes, whose corporate goals align with electrification, are invested in the hybrid direction. By contrast, other teams like Ferrari and, in particular, Red Bull are brands built around excitement and flair. For them, the drama of V10s outweighs the environmental credentials of hybrid systems.

IP IN F1: TREASURE LIES WITHIN

However, the 2030 engine formula is about more than just brand alignment. The R&D and racing could give rise to powerful and valuable new technologies. Formula 1 is well-known as a hotbed of innovation, but protecting intellectual property can be challenging. Aerodynamics and suspension design are the focus of every F1 team, but these are "exterior" technologies visible on track and thus easily copied. Indeed, copying is seen as a natural and even desirable part of F1, because it enables slower teams to catch up with their more successful rivals.

However, in the case of F1, "interior" technology, such as engine design features, is potentially more open to protection and transformation into valuable IP. Interior components of the engine are concealed from your competitors. In addition, while the "exterior" components of an F1 car can change from one week to the next, engine designs usually evolve more slowly, over the course of one or more seasons. Patents, which require time to draft, prosecute, and grant, may therefore be worth consideration. However, patents eventually publish, which could be detrimental in the highly competitive environment of F1. Trade secrets, on the other hand, offer protection as long as the information remains confidential and could be used to protect valuable engine design features indefinitely.

FUTURE IP CONSIDERATIONS

F1's 2030 engine formula could significantly impact which teams gain the most value from their IP. If the sport continues to evolve the hybrid powertrain regulations, large automotive manufacturers like Audi and Mercedes may benefit. The developments in electrical systems and battery technology could benefit their sister teams in other sporting formulas, or even be rolled out more widely to their road cars. If the technology becomes more widely applicable, patent rights to block competitors and underly licensing deals become even more valuable.

Conversely, a shift to simpler V10 engines powered by sustainable fuels could be of greater interest to teams aligned with non- and smaller-scale manufacturers. Ferrari's supercars, with their large engines and focus on raw driving emotion, could be ideal platforms for IP developed from such a power unit formula. For other teams like Red Bull, the core IP from F1 may not be technology, but rather the value their trade mark rights gain from being associated with glamour and success in the sport.

Ultimately, each team's allegiance to a particular 2030 engine formula will be determined based on a combination of factors: whether they are likely to succeed on track, whether the technology aligns with their commercial values, but also whether they stand to gain valuable IP. If they, or anyone else, are seeking advice on strategic IP considerations, our team at Potter Clarkson stands ready to help.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Ethan Silverstone
Potter Clarkson
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