Ownership of inventions: Overview, definition and example
What is ownership of inventions?
Ownership of inventions refers to the legal rights associated with the creation or development of a new product, process, idea, or technology. The person or entity that owns an invention has the exclusive right to use, license, or sell it. Ownership is typically determined by factors such as the inventor's employment status, any agreements made (such as work-for-hire contracts or non-disclosure agreements), and intellectual property laws. Inventions are often protected by patents, which grant the owner exclusive rights to the invention for a specified period, usually 20 years from the filing date.
For example, a software developer who creates a new program may own the rights to the software unless there is an agreement stating otherwise (such as the invention being part of their employment contract).
Why is ownership of inventions important?
Ownership of inventions is important because it establishes who has control over the intellectual property and who is entitled to the economic benefits derived from it, such as licensing fees, royalties, or profits from sales. For businesses, securing ownership of inventions through patents or other intellectual property protections is critical for maintaining a competitive advantage and safeguarding innovation. For inventors, it ensures that they are recognized and rewarded for their creativity and effort.
Clear ownership also helps prevent disputes over the rights to inventions, which could lead to legal issues or loss of value. In cases of employment or collaboration, establishing ownership upfront helps to clarify who holds the rights to the invention, whether the inventor or the employer, or in the case of joint inventions, how ownership is shared.
Understanding ownership of inventions through an example
Imagine an engineer working for a tech company who develops a new type of drone. Under the terms of the engineer’s employment contract, the company owns any inventions made during the course of the employee’s work. As a result, while the engineer was the creator of the drone, the company holds the patent rights to the invention and can license or sell the technology.
In another example, two inventors collaborate on creating a new medical device. They agree upfront to share ownership of the invention equally. As co-owners, both inventors have the right to commercialize the device, apply for a patent, or license the technology, and they must jointly agree on how to manage and profit from the invention.
An example of an ownership of inventions clause
Here’s how an ownership of inventions clause might appear in an employment agreement or collaboration contract:
“The Employee agrees that any inventions, discoveries, or innovations made during the term of employment, whether or not related to the Employee’s job duties, shall be the exclusive property of the Employer. The Employee agrees to assign all rights to such inventions to the Employer and to cooperate in obtaining patents or other intellectual property protections as needed.”
Conclusion
Ownership of inventions is a critical aspect of intellectual property law and business operations. It determines who has the legal rights to use, profit from, or protect an invention. Whether through employment agreements, patent filings, or collaborations, understanding and clearly establishing ownership helps prevent disputes, fosters innovation, and ensures that inventors and businesses can capitalize on their creations. Securing ownership of inventions ensures that the creator or owner maintains control and derives value from their intellectual property.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.