Intellectual Property Lawyers for Idaho

The terms of your specific agreement are the most important factors to consider. In general, an invention assignment agreement usually means that an employee gives the company any ideas or inventions they come up with while working. The rules can vary by agreement, but they often cover ideas made during work hours, using company resources, or related to the company’s business. In Texas, an agreement can apply to inventions made outside of work hours if they’re related to the company’s business or came from work the company assigned. In one case, the agreement said the employee had to give up all inventions made during or after regular work hours, whether on or off the job, if they were related to the company’s business or came from work the company assigned. Usually, an invention assignment agreement doesn’t apply to ideas that aren’t related to the employee’s job unless the agreement says otherwise. In Atlas Brick Co. v. North, 2 S.W.2d 980, the court said that the title to an invention wouldn’t belong to the employer unless the agreement said that ideas made and perfected under the employee’s contract of employment belong to the employer. Also, if a discovery is made outside the scope and purpose of employment, it belongs to the employee unless there’s an agreement to give up such inventions to the employer. So, it all depends on the terms of the invention assignment agreement. In the case of Halliburton Energy Servs. v. Axis Techs., LLC, the agreement required the employee to turn over all materials related to inventions created during employment, making them the company’s property. But, if the agreement doesn’t cover certain inventions or if the inventions are made outside the scope of employment without using company resources, the employee might still retain ownership.

Hello, I'd be glad to review the details of the trademark assignment and confirm it properly transfers ownership of your trademark. As a trademark attorney, I have helped clients in similar situations both draft trademark assignments and record them with the USPTO to ensure that the trademark reflects the right ownership information. I would be happy to have a brief free 15 minute consult call to learn more details and see how I can help. Thanks for your consideration. Best, Roman rvayner@vaynerlegal.com 414 628 9099 www.vaynerlegal.com

You will need a design patent

A Patent Assignment Agreement transfers ownership of an invention or patent rights from the inventor, known as the assignor, to another party, often a company serving as the assignee. To protect your business and ensure enforceability, the agreement should cover specific provisions that make the transfer clear, complete, and legally sound. What Is the Core Assignment Clause? The assignment clause is the heart of the agreement. It should use present-tense language such as “hereby assigns, transfers, and conveys all right, title, and interest.” Courts and the USPTO treat this as an immediate transfer, while “will assign” is only a future promise. The clause should also cover continuation, divisional, or continuation-in-part applications, along with reissues, reexaminations, and foreign filings. What Rights Should Be Transferred? The assignee should receive the full bundle of rights granted under 35 U.S.C. § 154, including the right to make, use, sell, offer for sale, import, and license the invention. The agreement should also transfer the right to sue for past, present, and future infringement, so the company can recover damages even for activity that occurred before the assignment was signed. Do You Need Consideration? Every contract requires consideration, and patent assignments are no different. Even if the transfer is to your own company, the agreement should recite consideration. This can be nominal, such as “ten dollars and other good and valuable consideration,” or it can be tied to equity or to your role as founder. How Should the Patent Be Identified? The intellectual property should be identified with precision. If a patent has issued, include the number and issue date. For pending applications, list the application number, filing date, and invention title. If no application has been filed yet, provide a detailed description and later update the record once official filing details exist. What Warranties and Representations Are Common? The assignor should warrant ownership of the rights, authority to assign, and absence of liens or conflicting assignments. Over-warranting should be avoided. Do not guarantee novelty or validity, since those are determined by the USPTO and courts. Be cautious about warranting sole inventorship unless you are certain no other inventors contributed, since misstatements on inventorship can create validity problems. What Other Provisions Should Be Included? Other common provisions include further assurances requiring the inventor to assist with future filings, litigation, or USPTO actions, a limited power of attorney for patent prosecution and enforcement, and improvements clauses that attempt to capture future modifications or developments. Improvements provisions must be drafted carefully, as vague scope language can lead to disputes. The agreement should also address corporate authority, ensuring the company has approval under bylaws or state law before accepting the assignment. What Administrative Details Matter? The agreement should contain standard contract terms such as governing law, entire agreement, amendment requirements, successors and assigns, and dispute resolution through arbitration or mediation. Both the inventor and the company should sign, and notarization is advisable because it makes USPTO recordation smoother. Do You Need to Record with the USPTO? After execution, the assignment should be recorded with the USPTO through the Electronic Patent Assignment System. Recordation should occur promptly after execution to establish clear priority and maintain a clean chain of title. While recordation is not required for validity between the parties, it protects ownership against third-party claims. The USPTO currently charges little or no fee for electronic filings, so this step is inexpensive and essential. Should You Assign or License? An assignment transfers complete ownership, which investors generally expect. A license keeps ownership with the inventor while granting defined rights to the company. Licensing may be useful when the inventor wants to retain control, license the technology to multiple companies, or test the market before giving up ownership. For most startups, assignment is the preferred approach. What About Tax Considerations? Assignments can have tax consequences, especially when IP is transferred for equity or other forms of consideration. Professional tax advice is essential to evaluate both immediate tax effects and ongoing obligations. This is particularly important if the company later earns royalties or sells the patent. What Are the Next Steps? The implementation process should include drafting the agreement with qualified legal counsel, executing it with proper corporate authority and notarization where possible, recording it promptly with the USPTO using EPAS, and consulting a tax professional to address both the transfer itself and any ongoing obligations. If you need help drafting or reviewing a Patent Assignment Agreement, the attorneys on Contracts Counsel can guide you through the process so that your company’s rights are fully protected.

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