patent assignment process

29 Jan 2024

Patent Assignment: How to Transfer Ownership of a Patent

By Michael K. Henry, Ph.D.

• Intellectual Property
• Patent Prosecution

This is the second in a two-part blog series on owning and transferring the rights to a patent. ( Read part one here. )

As we discussed in the first post in this series, patent owners enjoy important legal and commercial benefits: They have the right to exclude others from making, selling, using or importing the claimed invention, and to claim damages from anyone who infringes their patent.

However, a business entity can own a patent only if the inventors have assigned the patent rights to the business entity. So if your employees are creating valuable IP on behalf of your company, it’s important to get the patent assignment right, to ensure that your business is the patent owner.

In this post, we’ll take a closer look at what a patent assignment even is — and the best practices for approaching the process. But remember, assignment (or transfer of ownership) is a function of state law, so there might be some variation by state in how all this gets treated.

What Is a Patent Assignment and Why Does it Matter?

A patent assignment is an agreement where one entity (the “assignor”) transfers all or part of their right, title and interest in a patent or application to another entity (the “assignee”). 

In simpler terms, the assignee receives the original owner’s interest and gains the exclusive rights to pursue patent protection (through filing and prosecuting patent applications), and also to license and enforce the patent. 

Ideally, your business should own its patents if it wants to enjoy the benefits of the patent rights. But  under U.S. law , only an inventor or an assignee can own a patent — and businesses cannot be listed as an inventor. Accordingly, patent assignment is the legal mechanism that transfers ownership from the inventor to your business.

Patent Assignment vs. Licensing

Keep in mind that an assignment is different from a license. The difference is analogous to selling versus renting a house.

In a license agreement, the patent owner (the “licensor”) gives another entity (the “licensee”) permission to use the patented technology, while the patent owner retains ownership. Like a property rental, a patent license contemplates an ongoing relationship between the licensor and licensee.

In a patent assignment, the original owner permanently transfers its ownership to another entity. Like a property sale, a patent assignment is a permanent transfer of legal rights.

U sing Employment Agreements to Transfer Patent Ownership

Before your employees begin developing IP,  implement strong hiring policies  that ensure your IP rights will be legally enforceable in future.

If you’re bringing on a new employee, have them sign an  employment agreement  that establishes up front what IP the company owns — typically, anything the employee invents while under your employment. This part of an employment agreement is often presented as a self-contained document, and referred to as a “Pre-Invention Assignment Agreement” (PIAA).

The employment agreement should include the following provisions:

• Advance assignment of any IP created while employed by your company, or using your company’s resources
• An obligation to disclose any IP created while employed by your company, or using your company’s resources
• An ongoing obligation to provide necessary information and execute documents related to the IP they created while employed, even after their employment ends
• An obligation not to disclose confidential information to third parties, including when the employee moves on to a new employer

To track the IP your employees create, encourage your employees to document their contributions by completing  invention disclosure records .

But the paperwork can be quite involved, which is why your employment policies should also include  incentives to create and disclose valuable IP .

Drafting Agreements for Non-Employees

Some of the innovators working for your business might not have a formal employer-employee relationship with the business. If you don’t make the appropriate arrangements beforehand, this could complicate patent assignments. Keep an eye out for the following staffing arrangements:

• Independent contractors:  Some inventors may be self-employed, or they may be employed by one of your service providers.
• Joint collaborators:  Some inventors may be employed by, say, a subsidiary or service company instead of your company.
• Anyone who did work through an educational institution : For example, Ph.D. candidates may not be employees of either their sponsoring institution or your company.

In these cases, you can still draft contractor or collaborator agreements using the same terms outlined above. Make sure the individual innovator signs it before beginning any work on behalf of your company.

O btaining Written Assignments for New Patent Applications

In addition to getting signed employment agreements, you should  also  get a written assignments for each new patent application when it’s filed, in order to memorialize ownership of the specific patent property.

Don’t rely exclusively on the employment agreement to prove ownership:

• The employment agreement might contain confidential terms, so you don’t want to record them with the patent office
• Because employment agreements are executed before beginning the process of developing the invention, they won’t clearly establish what specific patent applications are being assigned

While you  can  execute the formal assignment for each patent application after the application has been filed, an inventor or co-inventor who no longer works for the company might refuse to execute the assignment.

As such, we recommend executing the assignment before filing, to show ownership as of the filing date and avoid complications (like getting signatures from estranged inventors).

How to Execute a Written Patent Agreement

Well-executed invention assignments should:

• Be in writing:  Oral agreements to assign patent rights are typically not enforceable in the United States
• Clearly identify all parties:  Include the names, addresses, and relationship of the assignor(s) and assignee
• Clearly identify the patent being assigned:  State the patent or patent application number, title, inventors, and filing date
• Be signed by the assignors
• Be notarized : If notarization isn’t possible, have one or two witnesses attest to the signatures

Recording a Patent Assignment With the USPTO

Without a recorded assignment with the U.S. patent office, someone else could claim ownership of the issued patent, and you could even lose your rights in the issued patent in some cases. 

So the patent owner (the Assignee) should should record the assignment through the  USPTO’s Assignment Recordation Branch . They can use the  Electronic Patent Assignment System (EPAS)  to file a  Recordation Cover Sheet  along with a copy of the actual patent assignment agreement.

They should submit this paperwork  within three months  of the assignment’s date. If it’s recorded electronically, the USPTO  won’t charge a recordation fee .

Need to check who owns a patent?  The USPTO website  publicly lists all information about a patent’s current and previous assignments.

When Would I Need to Execute a New Assignment for a Related Application?

You’ll need only one patent assignment per patent application, unless new matter is introduced in a new filing (e.g., in a  continuation-in-part , or in a non-provisional application that adds new matter to a  provisional application ). In that case, you’ll need an additional assignment to cover the new matter — even if it was developed by the same inventors.

What If an Investor Won’t Sign the Written Assignment?

If you can’t get an inventor to sign an invention assignment, you can still move forward with a patent application — but you’ll need to document your ownership. To document ownership, you can often rely on an   employee agreement ,  company policy ,  invention disclosure , or other employment-related documentation.

D o I Need to Record My Assignments in Foreign Countries?

Most assignments transfer all rights, title, and interest in all patent rights throughout the world.

But in some countries, the assignment might not be legally effective until the assignment has been recorded in that country — meaning that the assignee can’t enforce the patent rights, or claim damages for any infringement that takes place before the recordation. 

And there might be additional formal requirements that aren’t typically required in the United States. For example, some countries might require a transfer between companies to be signed by both parties, and must contain one or both parties’ addresses.

If you’re assigning patents issued by a foreign country, consult a patent attorney in that country to find out what’s required to properly document the transfer of ownership.

N eed Help With Your Patent Assignments?

Crafting robust assignment agreements is essential to ensuring the proper transfer of patent ownership. An  experienced patent professional  can help you to prepare legally enforceable documentation.

Henry Patent Law Firm has worked with tech businesses of all sizes to execute patent assignments —  contact us now  to learn more.

GOT A QUESTION? Whether you want to know more about the patent process or think we might be a good fit for your needs – we’d love to hear from you!

Michael K. Henry, Ph.D.

Michael K. Henry, Ph.D., is a principal and the firm’s founding member. He specializes in creating comprehensive, growth-oriented IP strategies for early-stage tech companies.

10 Jan 2024

Geothermal Energy: An Overview of the Patent Landscape

By Michael Henry

Don't miss a new article. Henry Patent Law's Patent Law News + Insights blog is designed to help people like you build smart, scalable patent strategies that protect your intellectual property as your business grows. Subscribe to receive email updates every time we publish a new article — don't miss out on key tips to help your business be more successful.

Patent assignment law enables the transfer of patent ownership from an original inventor, to those in a position to bring the invention or idea to its full market potential. While the concept of new assignment might seem straightforward, the layers of strategy, legal nuance, and potential impact patents have on your organization are profound.

In this guide, we’ll consider the strategic framework and practical steps to master patent property assignment.

Understanding Patent Assignments

Patent assignment involves a total transfer of ownership assign patent rights from the original applicant, inventor or patent holder (the assignor) to another entity or individual (the patent assignee)). It’s akin to selling a patent, where the assignee owner gains the exclusive rights to the patent as well as the ability to license those rights to others. For those developing or investing in new technologies, patent assignments are the key to protecting intellectual property and commercializing the innovations you’ve funded.

Many confuse patent assignments with licensing, but there are significant differences. Licensing is more like renting a patent than owning it. In this scenario, the patent owner grants permission to another party (the licensee) to use the applicant or patented technology under defined conditions while retaining ownership of the patent. This arrangement establishes an ongoing relationship between all parties: the the owner, inventor or original owner, the patent office, licensor and licensee, allowing the patent owner to potentially earn from their IP through multiple channels simultaneously.

Navigating Ownership Through Assignment or Licensing

Patent assignment tends to arise in the research or employment context where an individual person, be it co inventor or an employee, professor, or student, creates new technology on behalf of a company or an entity. In the the United States patent itself, only humans, not businesses, companies or other entities, can be named inventors on a patent unless the patent is assigned to an entity. So, patent assignment serves as the legal channel through which the individual inventor can transfer ownership to an entity like a business, a corporation or a university.

Essentially, organizations and companies that fund and support the development of new innovations will show interest and typically seek exclusive right of patent assignment, whereas individual inventors looking to profit from their creation while retaining their interest and ownership of claimed invention tend to show interest and prefer licensing agreements.

Strategic Considerations for Patent Owners

Patent assignments can be a powerful business tool for businesses looking to expand their technological capabilities or refine their IP assets. Whether you are a patent owner or an organization, company or business aiming to acquire patents from other owners, the patent infringement journey demands strategic planning. This requires a deep understanding of the patent’s value, due diligence, and negotiating terms that match your business goals.

Yet, the path to a successful patent assignment agreement is full of potential hurdles, such as ownership, patent and trademark office, title disputes, ambiguous contracts, and obligations under existing licenses. To navigate these challenges, patent owners and their partners should focus on clear, comprehensive agreements, thorough pre-assignment due diligence, and a keen awareness of the interest of all parties and joint owners and parties’ rights and responsibilities.

For organizations, your collaborators may be more than just your employees. You may need to consider whether independent contractors, subcontractors, or students are working on the patent applications, patents or innovations you’re funding. Each member plays a unique role in the development of an invention or new technology, and you’ll need to have clear agreements outlining their rights or assignments with respect to joint ownership of the invention or underlying IP.

Also, if new material is introduced in the form of a new patent filing, even if it’s developed by the same inventors working on publication number of other patent applications for the same invention or similar research, it will require a new patent assignment if you intend to own the new invention claimed innovation the patent application.

Best Practices for a Smooth Patent Assignment Process

The whole patent application and assignment process is not just a transaction but a strategic maneuver that can significantly impact a company or business’s growth and innovation trajectory. For those at the helm of a company owns this process, whether you’re consolidating your company and technology portfolio or acquiring new IP, a thoughtful approach to patent application and assign it is imperative.

Here are some tips for a smooth assignment process:

1. Conduct Rigorous Due Diligence

Start by examining the ownership of a patent’s history and current standing. Verifying ownership and legal status is not merely about ticking boxes; it’s about ensuring a smooth sail ahead, free from disputes or legal entanglements. Likewise, be sure you understand the impact of any existing employment agreement, licenses or employment agreement on third-party interests. This step is the foundation upon which a secure patent assignment agreement, license agreement or employment agreement is built.

2. Craft Precise Agreements

An effective assignment agreement or contract demands legal expertise and clarity. These documents should spell out the transfer of rights, title and obligations with unmistakable precision. That said, you should tread carefully if you’re using standard employment agreement contracts or oral agreements to assign IP rights. Employment agreement agreements often pre-date inventions and might not articulate the patent rights being transferred with legal specificity. They can also contain sensitive or confidential information throughout, making them less than ideal for public recording.

Instead, tailor each agreement to the patent property at hand, clarifying exactly what is personal property and intellectual property is being assigned to one party without ambiguity.

3. Time the Application and Assignment Strategically

The saying “timing is everything” is particularly true when it comes to patent assignments. When possible, it’s best to execute and assign an assignment before filing the patent application. It clarifies ownership and the ownership interest upfront, reducing the risk of the applicant or inventor refusing the obligation to assign assignment post-filing.

Also, keep a close eye on deadlines for assign them. An assignment should be recorded and filed with the USPTO within three months of filing date or the assignment date. This can be done in writing assignments recorded in person or electronically without a recordation fee.

4. Be Mindful of International Rules

In a global economy, patents often cross borders. If international validity of patent applications is a goal, it’s crucial to work with qualified and experienced patent attorneys in the respective foreign country local law jurisdictions. Meet with them before writing patent application or executing any documents to ensure your assignments and patents will be valid in different countries without jeopardizing future IP rights as you expand.

The Path Forward

For patent owners and entities, the nuances of a patent license assignment require a strategic, informed approach. By adhering to some of the best practices mentioned, you can ensure your patent assignments not only comply with legal standards but also align with your long-term objectives. With due diligence and seasoned guidance, you can protect and capitalize on the full value of your IP assets.

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Who may apply for a patent?

You (the inventor) or your legal representative may apply for a patent, with some exceptions. These include if the inventor has died, is legally incapacitated, refuses to apply, or cannot be found. Two or more people inventing something together may apply for a patent as joint inventors. A person (e.g., a company) to whom an inventor has assigned an invention, or to whom the inventor is obligated (e.g., contractually required) to assign an invention, may also apply for a patent.

If you only contribute money but are not the inventor or co-inventor, you cannot be named as an inventor or co-inventor in the patent application. Furthermore, if you are not the inventor, and the inventor(s) did not assign the invention to you or does not have an obligation to assign the invention to you, you may not apply for a patent. USPTO employees cannot apply for or own a patent unless they inherit it.

Patent ownership gives the owner the right to exclude others from making, using, offering for sale, selling, or importing into the United States the invention claimed. A patent may be owned jointly by two or more entities. Also, the owner may assign a part interest in a patent to another entity.

In the absence of any agreement to the contrary, any joint owner of a patent, no matter how small the part interest, may make, use, offer for sale, sell, and import the invention for personal profit without accounting to the other owners. However, the ability to practice the invention may be constrained by the applicable (non-patent) laws and the rights of others. Joint owners may sell their interest or any part of it, or grant licenses to others, without regard to other joint owners, unless a contract governs their relationship.

Jointly owned or partially assigned patents affect people’s rights. So if you are in such a situation, consult with an attorney to understand the law and protect your rights.

Assignments and licenses

A patent is personal property and may be sold or mortgaged, written into a will, and passed to one’s heirs. An experienced, licensed patent attorney can help with licensing agreements and assignments. Some states have set certain formalities to be observed in the sale of patent rights.

Assignments

The transfer or sale of a patent or application is executed through an assignment. Patent law also provides for assignment of part interests (half, fourth, etc.) in a patent. Upon assignment, the assignee becomes the owner of the patent and has the same rights as the original owner.

If the patent is mortgaged, ownership passes to the lender until the mortgage has been satisfied and retransferred to the borrower. Assignments which are made conditional on the performance of certain acts or events, such as the payment of money or other subsequent condition, if recorded in the USPTO, are regarded as absolute assignments for USPTO purposes until canceled with the written consent of all parties or by the decree of a court of competent jurisdiction. The USPTO does not determine whether such conditions have been fulfilled.

  Patent Assignment Search

This searchable database contains all recorded Patent Assignment information from August 1980 to the present.

  Trademark Assignment Search

The database contains all recorded Trademark Assignment information from 1955 to the present. Trademark Assignments recorded prior to 1955 are maintained at the National Archives and Records Administration.

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Navigating the USPTO Patent Assignment Search: A Comprehensive Guide

By Babak Akhlaghi on March 28, 2024.

The United States Patent and Trademark Office (USPTO) is a pivotal institution in the realm of intellectual property, playing a crucial role in protecting the innovations that fuel progress. Among its varied services, the USPTO patent assignment search stands out as an essential resource for individuals and organizations navigating the intricacies of patent ownership and assignments. This guide delves deep into the functionality and significance of the USPTO’s patent assignment search tool, shedding light on its utility and operation for all stakeholders involved in the patenting process.

Understanding Patent Assignments

To fully appreciate the value of the USPTO assignment search, one must first understand what a patent assignment entails. Essentially, a patent assignment is the transfer of an owner’s rights, title, and interest in a patent or patent application to another entity or individual. This process can occur through the sale of the patent, a transfer of ownership during a business transaction, or through inheritance. The completion of an assignment confers upon the new owner the exclusive rights to the patent, including the authority to prevent others from exploiting the patented invention.

The Role of the USPTO Patent Assignment Search

Central to the USPTO’s offerings is the USPTO assignment database, a comprehensive repository that records all patent assignment information from August 1980 to the current day. This database becomes indispensable for verifying the present ownership of a patent or patent application whenever the USPTO processes pertinent assignment details.

For inventors, legal professionals, and corporations alike, the USPTO assignment search is vital for various reasons. It facilitates due diligence efforts prior to the acquisition or licensing of patents, aids in the resolution of patent right disputes, and ensures adherence to assignment recording protocols.

Utilizing the USPTO Patent Assignment Search

Thanks to the user-friendly interface of the USPTO assignment search tool , users can effortlessly access detailed records of patent assignments. This tool, part of the broader USPTO Electronic Patent Assignment System (EPAS), allows searches by multiple criteria such as patent number, assignor and assignee names, publication numbers, and reel/frame numbers. Results from this assignee search provide comprehensive details about each assignment, including participant names, assigned patents or applications, and the date of assignment.

The USPTO patent assignment search tool is far more than a mere database; it serves as a critical access point to the legal and commercial dimensions of patenting. By facilitating access to exhaustive records of US patent assignments, the USPTO empowers stakeholders across the innovation landscape to make well-informed decisions. This, in turn, helps in averting disputes and promoting the seamless transfer of technology. Whether you are conducting a US patent assignment search, exploring the USPTO assignment database, or utilizing the USPTO trademark assignment search function, the USPTO’s resources are invaluable for anyone involved in the intricate world of patents and trademarks.

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IP Assignment and Licensing

IP rights have essentially transformed intangibles (knowledge, creativity) into valuable assets that you can put to strategic use in your business. You can do this by directly integrating the IP in the production or marketing of your products and services, thereby strengthening their competitiveness. With IP assignement and IP licensing, IP owners can also use your IP rights to create additional revenue streams by selling them out, giving others a permission to use them, and establishing joint ventures or other collaboration agreements with others who have complementary assets.

  Expert tip: Assignment, license and franchising agreements are flexible documents that can be adapted to the needs of the parties. Nevertheless, most countries establish specific requirements for these agreements, e.g. written form, registration with a national IP office or other authority, etc. For more information, consult your IP office .

IP rights assignment

You can sell your IP asset to another person or legal entity.

When all the exclusive rights to a patented invention, registered trademark, design or copyrighted work are transferred by the owner to another person or legal entity, it is said that an assignment of such rights has taken place.

Assignment is the sale of an IP asset. It means that you transfer ownership of an IP asset to another person or legal entity.

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You can authorize someone else to use your IP, while maintaining your ownership, by granting a license in exchange for something of value, such as a monetary lump sum, recurrent payments (royalties), or a combination of these.

Licensing provides you with the valuable opportunity to expand into new markets, add revenue streams through royalties, develop partnerships etc.

If you own a patent, know-how, or other IP assets, but cannot or do not want to be involved in all the commercialization activities (e.g. technology development, manufacturing, market expansion, etc.) you can benefit from the licensing of your IP assets by relying on the capacity, know-how, and management expertise of your partner.

  Expert tip: Licensing can generally be sole, exclusive or non-exclusive, depending on whether the IP owner retains some rights, or on whether the IP rights can be licensed to one or multiple parties.

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Global Dossier

Global Dossier is a set of business services aimed at modernizing the global patent system and delivering benefits to all stakeholders through a single portal/user interface .  Through this secure service, users have access to the file histories of related applications from participating IP Offices, which currently include the IP5 Offices.

By using this service, users can see the patent family for a specific application, containing all related applications filed at participating IP Offices, along with the dossier, classification, and citation data for these applications. This service also provides Office Action Indicators to help users identify applications that contain office actions, a Collections View for saving documents and applications for review later on in the session, and the ability to download the documents in an application.

Public Search Facility

The United States Patent and Trademark Office (USPTO) Public Search Facility located in Alexandria, VA provides the public access to patent and trademark information in a variety of formats including on-line, microfilm, and print. Trained staff are available to assist public users.

Patent and Trademark Resource Centers (PTRCs)

Your nearest Patent and Trademark Resource Center (PTRC) maintains local search resources and may offer training in patent search techniques.

• Find your nearest PTRC

Patent Official Gazette

The Electronic Official Gazette allows users to browse through the issued patents for the current week. The Official Gazette can be browsed by classification or type of patent, for example, utility, design, and plant.

Common Citation Document (CCD)

The Common Citation Document (CCD) application aims to provide single point access to up-to-date citation data relating to the patent applications of the IP5 Offices. It consolidates the prior art cited by all participating offices for the family members of a patent application, thus enabling the search results for the same invention produced by several offices to be visualized on a single page. The creation of the CCD application is part of an ongoing process of technical harmonization at international level aimed at establishing an appropriate infrastructure to facilitate greater integration of the global patent system.

Search International Patent Offices

To see if your idea has been patented abroad, you'll want to refer to searchable databases made available from other International Intellectual Property offices. Free online access to patent collections is provided by many countries. Some available databases include:

• European Patent Office (EPO) provides esp@cenet a network of Europe's patent databases- This site also provides access to machine translation of European patents for some languages. 
• Japan Patent Office (JPO) - This site also provides access to machine translations of Japanese patents.
• World Intellectual Property Organization (WIPO) provides PATENTSCOPE ® Search Service, which features a full-text search of published international patent applications and machine translations for some documents as well as a list of international patent databases.
• Korean Intellectual Property Rights Information Service (KIPRIS)
• China National Intellectual Property Administration (CNIPA) - This site also provides access to machine translation of Chinese patents.
• Other International Intellectual Property Offices that provide searchable patent databases include: Australia , Canada , Denmark , Finland , France , Germany , Great Britain , India , Israel , Netherlands , Norway , Sweden , Switzerland and Taiwan .

Stopfakes.Gov provides informative Toolkits that give an overview of the Intellectual Property Rights (IPR) environment in various countries around the world.

For additional search resources, contact your local Patent and Trademark Resource Center , visit the USPTO Public Search Facility or the USPTO Main STIC Library . The staff in the Main STIC Library are experts on foreign patents and able to help the public as needed.

Search Published Sequences

The Publication Site for Issued and Published Sequences (PSIPS) website provides Sequence Listings, tables, and other mega items for granted US patents or published US patent applications.

All sequences (SEQ ID NOs.) and tables for listed patents or publications are available for viewing, without downloading, by accessing the proper document detail page and then submitting a SEQ ID NO or a mega table ID number.

Patent Assignment Search

Visit the Patent Assignment Search website to search for patent assignments and changes in ownership.

Patent Examination Data System (PEDS)

The Patent Examination Data System (PEDS) in the Amazon Cloud provides public users the ability to search, view and download bibliographic data for all publicly available Patent applications in a secure manner. The solution allows public users to search and download bibliographic data in bulk as well as manage the volume of data that can be downloaded at any given period of time by a particular user.

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