If you die while waiting for a copyright, trademark, or patent application to be granted, what happens to the application and to your intellectual property?
What Happens to Pending Applications?
- Patents – Your estate can continue prosecution, which is managing the application while it’s being examined. If the patent is granted, the patent is an asset that can be transferred per directives in your estate plan.
- Trademarks – If you own it personally, your ownership and any license agreement rights transfer through an estate plan or state intestacy laws if you have no will. If your business owns it and the business can keep operating without you, it just keeps going as usual.
- Copyrights – Copyright lasts for 70 years after your death, so someone will own the rights. It’s up to you to plan for who that will be.
How Can You Protect Your IP in Estate Planning?
If you don’t make any plans through a properly executed will or other estate planning documents, state law will decide what happens. To prevent that, here are some popular ways to have your intellectual property handled properly when you’ve passed.
- Include Your IP in Your Will or Trust – Making provisions specifically for your intellectual property in these documents can ensure it goes to your intended beneficiaries. If you use a living trust, the trustee can manage the IP for your benefit while you are alive and easily transition to managing it for the beneficiaries after your death.
- Create an IP Holding Company – A business entity can own and control your rights, making transitions smoother, as long as you’ve designated who will succeed you in any such company.
- Transfer Your IP Rights – While you’re living, you can assign your IP to someone else as a gift or by selling them the rights.
Intellectual property law, when combined with good business planning and estate planning, can make sure your IP goes on without you as you’d like. Planning ahead ensures your creativity and business legacy live on!
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