What Are Patent Assignments?

When you think about a Patent, you probably imagine it as a certificate of ownership, proof that you’re the inventor and that the invention is yours alone. Accordingly, in a sense, that’s true. At its core, a Patent grants the owner the right to exclude others from making, using, or selling an invention. However, what many people don’t realize is that this Patent Right, like most forms of property, can actually be bought, sold, or transferred. This transfer of ownership is known as a Patent Assignment, and it can play a major role in how ideas, inventions, and even entire businesses are handled. Continue reading and reach out to Lemler IP to speak with a knowledgeable New Orleans patent lawyer about Patent Assignments and how they can protect your rights and ensure you’re properly credited and compensated for your work.

What Does it Mean to Assign a Patent?

A Patent Assignment is essentially a legal transfer of ownership of the associated rights of exclusion from one party to another. In other words, the inventor, or whoever currently owns the Patent, signs over their rights to another individual or entity. Once that happens, the new owner gains full control over the Patent, including the right to prevent others from making, selling, importing, licensing, or enforcing the invention.

This kind of transfer can happen for many reasons. Sometimes, an employee creates something as part of their job, and under their Employment Agreement, the company automatically owns any inventions developed during that time. In other cases, inventors may choose to sell their rights outright, often to raise funds, bring their product to market, or partner with someone who has the resources to develop it further.

Whatever the reason, once the Assignment is complete, the original inventor no longer holds ownership rights. They may still be recognized as the creator, but legally speaking, the Patent now belongs to someone else.

How is a Patent Assignment Accomplished?

A Patent Assignment must be in writing and signed by the person transferring their rights. The document should clearly identify the Patent being assigned, the parties involved, and the specific rights being transferred. Once it’s signed, the Assignment should be recorded with the United States Patent and Trademark Office (USPTO). Recording isn’t technically required, but failing to do so may create serious problems later, especially if there’s ever a dispute about who owns the associated Patent.

It’s also worth noting that an Assignment can happen before or after a Patent is officially Granted. In some cases, inventors assign their rights while the Patent Application is still pending. This is common when inventors work with investors or companies that agree to fund the Patent process in exchange for ownership once it’s approved.

Why do Patent Assignments Matter?

Patent Assignments can be both a blessing and a risk for inventors. On one hand, selling or assigning a Patent can open doors by bringing in capital, attracting business partners, or helping get your invention into production faster. On the other hand, giving up ownership means you’re no longer in control of how your invention is used, priced, or even whether it’s produced at all.

If you’re considering a Patent Assignment, you need to understand what you’re giving up and what you’re gaining in return. Sometimes, a Licensing Agreement (which lets others use your invention while you retain ownership) might be a better option.

Ultimately, every situation is different, which is why you should always partner with a knowledgeable and experienced intellectual property lawyer.

If you have additional questions or would like to speak with Lemler IP about your case, please don’t hesitate to contact the firm today.