Business

Patent Partnership Agreements

Frequently, Inventors join forces to develop and market an invention. However, if there is not a clear understanding of the rights and responsibilities of each party, the partnership can collapse. Inventors may consider memorializing their relationship with a partnership agreement or form a third party entity, such as a corporation. A patent attorney understands the costs and benefits incurred during acquiring and protecting intellectual property. Therefore a patent attorney may provide a valuable contribution to a partnership agreement or agreement between inventors. Patent attorneys can prepare or review partnership agreements.

Sometimes a Patent Holder is not interested in practicing the invention himself/herself but is interested in making money by selling all rights to the invention. A patent attorney can prepare or record an assignment of all or a portion of rights to an invention with the United States Patent and Trademark Office.

Employment contracts should also include an assignment provision or section. Having an employment contract reviewed by a patent attorney or a patent agencies, such as InventHelp, can save a lot of money in the long run if there is later disagreement about intellectual property ownership. Assignments are frequently signed by employees granting all rights to the invention to the employer.

The ownership rights to patents and trademarks may also be assigned to trusts. A patent attorney should be consulted if an inventor plans to execute a trust or will.

License Agreements

Sometimes a Patent Holder is not interested in practicing the invention himself/herself but is interested in making money by charging a fee in exchange for allowing someone else to practice the invention.

Under a License agreement, the Patent Holder (called a Licensor) permits an individual or company interested in the technology (called a Licensee) rights to the invention in exchange for a fee (called a Royalty). Importantly, the Licensor retains ownership of the invention. Licenses can be crafted in a variety of ways with a variety of payment schedules. Payments may be a single flat fee, a percentage of sales or any creative arrangement agreed upon by the parties, as you can see from thisĀ https://www.crunchbase.com/organization/inventhelp article as well.

Licenses can be drafted using a variety of terms. The following are the most common types of licenses:

  • An Exclusive License is an agreement where the Licensor (or Patent Holder) agrees not to license the Patent to anyone except the Licensee.
  • A Non-Exclusive License is an agreement where the Licensor (or Patent Holder) permits the Licensee to practice the invention BUT the Licensor (or Patent Holder) is also permitted to license the invention to others.

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