Patents and patent applications, like intellectual property, may be transferred for a variety of reasons, including a merger or takeover, an inheritance or bankruptcy, or as a consequence of some judicial action. Often, the individual who came up with the concept is not the ideal person to market it and make it into a fully commercial product — and many innovators prefer to innovate, then delegate marketing and production to others so they can go back to inventing.
A patent transfer allows the inventor to sell their patent rights and allow others to handle the intellectual property in terms of value and patent enforcement.
Table of Contents
What Exactly Is Involved in a Patent Transfer?
What is involved in a legal patent transfer, commonly known as transferring patent ownership? The patent owner may change during the investigation of a pending patent application or after the patent has been granted:
the transfer of ownership of the patent to another business or person through a ‘assignment’
the patent’s name while maintaining control of the protected concept
The original owner should file a Recordation Cover Sheet with a copy of the actual assignment or evidence of name change with the United States Patent and Trademark Office (USPTO) Assignment Services Division.
Transferring a Patent with the Help of a Patent Attorney
Working with an expert patent attorney guarantees that the inventor’s concept is legally protected from the beginning – with a provisional or fully appointed patent. Once the concept has been secured, there are several options for an inventor to sell the patent and assure a fair fee.
Some inventors desire to keep a percentage of ownership and collect royalties in the future. Others would rather sell their patents outright and move on.
An inventor may wish to have an attorney present during the sale discussions to guarantee that they understand how their patented object will be developed and promoted. It’s vital to remember that some companies purchase patents only to let them die while their own inventions take centre stage. An inventor may be unaware that this is the intention behind the patent sale, thus it is critical that they get legal counsel to preserve their future revenues.
Once the selling agreement is in place, your patent attorney may submit the necessary papers to transfer the patent’s ownership in accordance with the conditions of the agreement.