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DEFENSE

DEFENSE

Defense has become one of the key strategic domains of recent years –both domestically and internationally. With armed conflicts unfolding across the globe, defense expenditures have soared. For lawyers committed to placing human values at the forefront, providing counsel in this field is a sensitive and challenging task. However, we believe that defense spending and projects are ultimately essential to establishing and preserving peace, and that our legal work in this area helps support the creation of a safer global order.
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Bridging US and European Defense Law

Our Defense & Security practice is built on the unique combination of US-qualified attorneys and Hungarian/EU counsel. This dual capability enables us to bridge the complex legal gap between American defense regulations and European frameworks. Clients rely on us as a single point of contact for projects that cross borders, jurisdictions, and regulatory regimes.

On the US side, we advise on Federal Acquisition Regulations (FAR/DFARS), International Traffic in Arms Regulations (ITAR), and the Export Administration Regulations (EAR). On the European side, our experience extends to EU procurement rules, dual-use regulations, and Hungary’s national defense legislation. This seamless integration reduces risks for multinational contractors and ensures consistency, especially in transactions involving both NATO allies and EU institutions.

We pride ourselves on offering technical compliance and strategic insight: how to anticipate issues before they arise, harmonize requirements across jurisdictions, and position clients to succeed in highly regulated markets where mistakes can carry reputational, financial, and even criminal consequences.

Government Procurement & Contracting

Defense procurement is one of the industry's most competitive and legally sensitive areas. We guide defense companies through every stage, from preparing and submitting bids under Hungarian and EU procurement law to navigating opportunities offered by NATO and the European Defence Agency.

Our attorneys ensure that contracts align with security of supply requirements, offset obligations, and national security interests. At the same time, we help US-based companies structure their offers and performance to comply with FAR/DFARS, subcontracting arrangements, and potential disputes with contracting authorities.

This dual perspective—combining American government contracting know-how with European procurement expertise—allows us to structure agreements that anticipate conflicts and maintain compliance throughout a defense program's lifecycle. Whether our client is a prime contractor or a subcontractor, we provide continuity and legal assurance from the initial bid to final delivery.

Export Controls & Trade Compliance

Export controls are a cornerstone of defense regulation and an area where errors can have devastating consequences. Our team assists with ITAR and EAR licensing, technology transfer agreements, and voluntary disclosures in the United States. In Europe, we manage compliance with EU dual-use rules and Hungarian export-control licenses, ensuring that defense articles, services, and data are transferred lawfully.

We advise on sanctions regimes, restricted party screening, and end-use certifications. Our role is preventive and responsive: preventing costly enforcement actions by building robust compliance systems and supporting clients if investigations or regulatory queries arise. With integrated advice across the US and EU regimes, we provide confidence to companies managing global defense supply chains.

Security Clearances & Industrial Security

Defense operations often involve access to classified information and strict industrial security obligations. We guide companies through personnel and facility clearance processes, including NATO and Hungarian national requirements. Our team works closely with counterintelligence and security authorities to ensure smooth approvals and ongoing compliance.

Beyond obtaining clearances, we help clients design and implement internal compliance systems that cover classified contract obligations, visitor and facility access, and information protection standards. Because our practice spans the United States and Europe, we can advise on the interplay between US classified information procedures and European expectations, ensuring that security protocols are credible and enforceable on both sides of the Atlantic.

Cybersecurity for Defense Contractors

Cybersecurity has become a central requirement in nearly all defense contracts. In the United States, we help contractors comply with DFARS cybersecurity clauses and the Cybersecurity Maturity Model Certification (CMMC). This includes addressing flow-down requirements to subcontractors and preparing for audits.

We align data protection, cybersecurity measures, and procurement security requirements in Europe with export-control obligations. Our services cover regulatory readiness, incident response planning, supply-chain risk assessments, and system resilience measures. By building cybersecurity into the contract compliance framework, we ensure clients are contract-ready and resilient against evolving cyber threats.

Technology Transfer, Offsets & IP

Defense programs often involve technology transfer, co-development, or licensed production arrangements. We structure these deals to protect intellectual property, respect export restrictions, and satisfy host-country requirements. Our attorneys negotiate agreements that balance innovation incentives with compliance obligations under ITAR/EAR and EU/Hungarian law.

Offsets and industrial participation programs are another area where careful legal structuring is essential. We advise designing offset arrangements that meet government expectations without undermining business objectives. By integrating intellectual property, export-control, and contractual considerations, we help ensure that technology collaborations are sustainable, enforceable, and commercially viable.

Transactions & FDI Screening

Foreign direct investment (FDI) in the defense sector faces heightened scrutiny due to national security concerns. We support clients in mergers, acquisitions, and joint ventures involving sensitive technologies, particularly within Hungary’s FDI screening regime and the EU’s broader framework.

Our role includes preparing filings, negotiating with government authorities, and designing mitigation strategies that allow deals to proceed while addressing security concerns. By combining transaction experience with deep knowledge of national security law, we help clients structure investments that withstand regulatory review and secure approval for cross-border defense projects.

Licensing & Authorizations

Defense operations in Hungary require a wide range of licenses and authorizations, from permits for defense manufacturing and brokering to licenses for handling ammunition and explosives. Our team prepares applications, manages communications with authorities, and ensures timely renewals.

Because regulations evolve, we track developments proactively, advising clients to adapt to new rules before they become bottlenecks. Whether entering the Hungarian market for the first time or expanding operations, our licensing support ensures compliance and operational continuity.

Disputes & Program Support

Defense contracts often run for years and involve complex webs of obligations. Disputes can arise over performance, modifications, price adjustments, intellectual property rights, or contract terminations. We represent clients in negotiations, arbitration, and litigation, always seeking to preserve mission continuity while defending commercial and legal interests.

Beyond disputes, we provide ongoing program support, advising on modifications, compliance audits, and stakeholder negotiations. By remaining engaged throughout a program's life, we help clients manage risk, resolve conflicts, and stay focused on operational success.

The Jalsovszky Difference

Clients choose our Defense & Security practice because we combine American regulatory knowledge, European procurement expertise, and local Hungarian insight. This rare blend allows us to serve as a single bridge for cross-border defense projects. Our approach is both practical and strategic: ensuring compliance while enabling clients to pursue opportunities in one of the most heavily regulated industries in the world.

Whether advising on procurement bids, structuring technology transfer deals, securing security clearances, or defending contract rights, we deliver clarity and confidence. In an industry where legal missteps can halt programs or derail investments, we provide the steady hand clients need to navigate complex defense and security landscapes.