Intellectual Property vs. General Estate or Business Assets: The Terrifying Difference at Death

Most people think of their IP like a regular asset that upon their death will either transfer automatically or be handled easily by the executor of their estate. But IP is different. IP is a tricky beast.

The biggest, most terrifying difference is this: Patents and trademarks are time-sensitive, living assets that require active maintenance and use to survive and special documents to transfer ownership.

• A patent is a 20-year legal monopoly. Renewal fees are due three times during those 20 years. If your executor doesn’t know the exact schedule and misses one maintenance fee payment, that patent is permanently dead and immediately enters the public domain. The clock is heartless; it does not stop for probate, and ignorance is no defense.
• A trademark can be perpetual, but only if it’s used, and a registration’s lifespan depends on both use and filing renewal documents along with fees. If your heir inherits the mark but fails to continue using it in commerce for the goods and services listed, the law presumes the mark has been abandoned, and if they don’t file the renewal documents and pay the fees, the USPTO will cancel the registration.

I dive into the specifics of succession plans in the main episode for this week and future episodes, so stay tuned for the sequels!