Skilled Licensing And Assignment Agreement Attorneys
For businesses, intellectual property is a valuable asset that can directly affect the continued success of an operation. In certain situations, these assets can profit a company more when licensed to a third-party. Licensing and assignment agreements provide an avenue for companies to monetize their intellectual property. As a premier patent firm, the attorneys at Coats & Bennett, PLLC, help individuals and entities profit from their inventions.
A Temporary Transfer Verses A Permanent Assignment
A patent gives the owner the exclusive rights to a patented item. These exclusive rights give the owner the authority to transfer the rights to another company or manufacturer using a licensing or assignment agreement.
A licensing agreement allows an owner to temporarily transfer product rights to another party for a set duration while still earning a profit from the patent rights. This can be a lucrative option for companies that wish to maintain control over a patent while increasing profitability and preventing infringement. Ownership of the patent does not transfer, no matter how much the licensee pays in fees or royalties. Typically, patent licensing agreements fall into three categories:
- Exclusive: The owner grants the rights only to the licensee and does not use the patented product or technology during the duration of the agreement.
- Non-exclusive: The owner grants the rights to the licensee but reserves the right to grant the rights to another entity or use the patented item throughout the length of the agreement.
- Sole: The owner grants the rights to the licensee and reserves the right to use the patented product or technology during the agreement period.
A patent assignment agreement functions much the same way except the arrangement is permanent. The owner transfers their rights to the assignee, often for a one-time lump sum. This option works well for businesses that are leaving the field or no longer wish to have responsibility for a product.
