Rights to inventions: Overview, definition, and example
What are rights to inventions?
Rights to inventions refer to who owns and controls new ideas, products, processes, or discoveries created during the course of work—especially in employment, consulting, or research agreements. These rights determine whether the inventor keeps ownership or must assign it to the company or client.
Why are rights to inventions important?
Clear invention rights help prevent future disputes over intellectual property. If a company hires someone to develop a product, it usually wants full ownership of anything created during the engagement. Without clear terms, the individual may claim rights to the invention, making it harder to protect, license, or sell. These clauses are especially important in tech, biotech, and creative industries.
Understanding rights to inventions through an example
Suppose a software engineer creates a new algorithm while working at a tech startup. If the employment contract includes a rights to inventions clause, the company automatically owns the algorithm. Without it, the engineer might claim ownership—even if they built it during company time using company resources.
Example of a rights to inventions clause
Here’s how a rights to inventions clause may appear in a contract:
"All inventions, discoveries, processes, and works of authorship conceived or developed by the Employee during the term of employment that relate to the Company’s business or result from the use of Company resources shall be the sole property of the Company, and the Employee agrees to assign all rights therein to the Company."
Conclusion
Rights to inventions clauses make sure intellectual property created during a business relationship ends up in the right hands—usually the employer or client. For businesses, having clear and enforceable terms is essential to protect innovation, secure funding, and avoid future legal issues.
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.