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This research deals with the role of reverse engineering (RE) in enhancing productivity (product quality and processing time improvements) and technological capability (TC). Using a systematic reviewing approach, the authors investigated and raised novel debating concepts, i.e., the controversy between advocates and opponents concerning the role of RE and the legality issues. The review process revealed the absence of a holistic definition that can address the state-of-the-art, and the impact of Intellectual Property Rights (IPRs) to adopt RE practice. The researchers believe that the new definition of RE is helpful to understand the comprehensive role of the practice and to fill the knowledge gap by convincing opponents about RE not as theft but as a driver to transfer knowledge and technology. The research also recommends how the bottlenecks on the legality issues can be resolved through the revision of IPRs from the context of developing countries (DCs).