Venjuris — Innovation Counsel
Intellectual PropertyPatent Law

Never Saw THAT Coming (Back to the Future Edition)

January 17, 2018Joseph Meaney

When inventors hire consultants to build prototypes or develop products, they must include explicit intellectual property ownership clauses in their contracts. Without such agreements, consultants may gain patent co-ownership rights.

Consider two scenarios: If the inventor conceived the specific technical solution and the consultant merely executed instructions, the inventor retains sole ownership. However, if the inventor only described the desired outcome and the consultant determined how to achieve it, the consultant may become the inventor.

Most real-world cases fall into a middle ground where both parties contribute novel elements, resulting in "joint inventor" status. This means both must be listed on the patent application — a situation that can create significant complications.

Joint inventorship means each co-inventor has the right to license the patent independently, potentially undermining the original inventor's control over the technology.

The solution is straightforward: always hire consultants with a written agreement that expressly addresses intellectual property ownership. Have them assign IP rights upfront, rather than attempting negotiations after a successful development.

It is always better to address these issues before work begins. An ounce of prevention in the form of a well-drafted agreement is worth far more than a pound of cure in patent ownership disputes.

About the Author

Joseph Meaney

Attorney at Venjuris, P.C. — Preventing and solving intellectual property problems since 1999.

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