Did you know that just because you invent something, you might not own the patent? Let’s break down the difference between inventorship and ownership in patents—and why it matters for your business!

⚙⚖ Inventorship vs. Ownership

Inventorship is about who actually came up with the invention, while ownership determines who controls the patent rights. And yes, they can be different!

• In many situations, the inventor is also the initial owner of the rights to the invention as they relate to applying for and being granted patent rights.
• However, if you invent something as an employee, and sometimes as an independent contractor, your employer may own it—depending on your contract. Sometimes this will apply to works created on company time, on the company premises, or using company equipment, even if they aren’t related to company business. Even if ownership is assigned in this way to the business, the inventor remains the inventor. This is different than the work-for-hire situation with copyright rights.
  • Businesses should make sure employment and contractor agreements make the terms of ownership clear.
  • Employees and contractors should look carefully at their agreements so they aren’t surprised about ownership rights.
• Other than as just described, all co-inventors share ownership rights unless they transfer ownership.
• Invention rights not otherwise owned by a company can be assigned to a company, shifting ownership from the inventor to the business.

📃 Assigning & Licensing Patent Rights

If you own the patent rights personally, you can allow your business to use the rights in one of two ways:

• License them to your business. This allows the business to make use of the patent rights while you retain ownership.

• Assign them to your business. If you decide to transfer all ownership of the patent rights to the business, you’ll need to assign those rights through a formal transfer. Assignment of rights through a section in an employment or contractor agreement is how businesses are given rights to inventions by employees or contractors.

Whether you want to license or assign your rights, a written agreement is necessary to state clearly what rights are granted or transferred, and under what circumstances.

Which option is right for you and your business? Of course, it depends. Like with any intellectual property, investors in and buyers of a business prefer to have ownership by the business. Your goals as an individual may be different, though.

🗝 Key Takeaway:

Patents are valuable assets, but ownership isn’t always as simple as it seems. The inventor is always the inventor, but the inventor is often not also the owner of the patent rights. Need help sorting it out? Talk to a patent attorney! Don’t forget to subscribe for more IP legal insights!