Salston - I do not see intellectual property theft as being a major consideration. For outside parties - the way to steal a design is get a product and reverse engineer it. - the problem comes when you try to market the Copy. For a start - 1. all medical devices require Registration and approval; 2. Not much point in trying to market a "Lookalike" against a company with Foxconn as a partner.
From what I can observe the two parties involved in this are genuine and want to pool their talents and resources for mutual gain and the protection for both parties is their mutual dependence on joint success. Which I think are very real goals for both parties.
There must be trust - there is no practical way in which you can protect IP from people you work with.
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