Transferring a Patent from an Individual to a Newly Formed Corporation
Many inventors wonder about the process of transferring their patents to a newly formed corporation. In this article, we will explore the detailed steps, legal considerations, and best practices involved in this process. This guide is aimed at providing inventors with a comprehensive understanding of how to properly transfer their patents to a corporate entity.
Licensing and Assignment of Patents
A patent can only be applied for under the names of inventors who have made substantial contributions to one or more claims. If you are an attorney, please correct me if I have provided erroneous information. The key thing to remember is that patents cannot be issued to entities such as corporations, partnerships, or LLCs. Instead, patents must be assigned, which can be done either during the application process or at a later date.
A side note is that any patent owner can make their own deals independently of the other inventors. Therefore, it is recommended that inventors come to an agreement on the terms of ownership before any such deals are made. For example, if Inventor A and B agree that Inventor A will own 99% and Inventor B will own 1%, then Inventor B could license the patent to a company without the approval of A and wouldn't need to share any proceeds with A.
The point here is clear: protect your interests before making any transfers or deals involving your patent.
Transferring Ownership to a Business Entity
Yes, you can assign your patent to a business entity that is formed later. If the business entity is wholly owned by the inventor, the assignment process becomes simpler and more straightforward.
U.S. Perspective on Patent Assignment and Corporate Transfer
From a U.S. legal perspective, an individual who has obtained a patent may form a corporation or an LLC and then assign the patent to that entity. This is a common practice where the assignment of the patent forms part of the consideration for an equity interest in the newly formed entity.
For instance, the patent holder may give the inventor an equity stake in the company in exchange for the assignment of the patent rights.
It is important to proceed with caution and seek professional legal advice before making any significant decisions. This answer is not a substitute for professional legal advice and does not create an attorney-client relationship. If you have any doubts or need detailed legal advice, please consult with a licensed attorney in your jurisdiction.
Additionally, if you believe you have a claim against someone, consult an attorney immediately to ensure that your rights are not compromised. Ignoring this warning and providing confidential information via private messages or comments carries risks. Seek legal representation to protect your interests.
By understanding the process and legal considerations involved, inventors can ensure they protect their intellectual property rights and navigate the complexities of patent assignment and corporate transfer with confidence.