Intellectual Property – License and Assignment Agreements
Undoubtedly, tangible property is valuable. But what more valuable is Intellectual Property (IP) as it allows the companies to make money by marketing their products under a secured shelter of Intellectual Property Rights (IPR). Hence, it is imperative to ensure the protection of your IP through copyrights, trademarks, patents, or other legal forms of IP.
The IP rights sometimes bestow you with a more convenient option of generating revenue by permitting any third-party to use them in exchange for an agreed amount. The two judicial documents that enable you to make money by transferring your rights to others include intellectual property assignment agreements and intellectual property licensing. These are the documents that add to your Intellectual Property Protection by ascertaining how the permitted third parties can use them.
Certainly, both of these documents provide the ability to confer your IP rights, but under different policies.
Intellectual Property Assignment Agreements
No matter whether it is in the context of an employment or any other thing, an intellectual property assignment agreement is a contract to transfer IP ownership from assignor to assignee. It empowers you to permanently consign all your IP rights to the willing candidate in exchange for a defined amount. This agreement makes you sell your IP rights similarly as you could sell a physical property marking a permanent transfer. It means you no longer hold any control, involvement, or claim on the transferred rights.
Intellectual Property License Agreement
Also known as intellectual property licensing, it is a contract that facilitates a licensor to grant his IP rights to the licensee, but while retaining their control, i.e., ownership. With the help of this contract, you can trade your copyrights, trademarks, patents, or others for a specific period.
Intellectual Property Assignment Agreement versus Intellectual Property Licensing
People usually have a query which out of the intellectual property assignment agreement and intellectual property licensing is better. The fact is that both these agreements have some pros and cons, depending on several needs and interests. The below-given differences will help you in deciding which one out of the two is better by understanding them in respect to your interests.
Three main differences between IP assignment and IP licensing are as follows:
- Interest vested in Intellectual Property
It is the first thing to consider while comprehending how these two agreements differ.
Licensing IP means that the licensor permits the licensee to use his assets in a particular way. To be specific, the owner still retains an interest in the licensed property. For instance, if you want to enjoy the benefits of transferring your IP, but while maintaining your control, then it is beneficial to go for intellectual property licensing. It enables you to not only get a steady income from your partner over a specific period but also confer the same rights to several users. Under this, you cannot just determine how the allowed party is using your IP but also finish the partnership if it appears disadvantageous.
On the other hand, assigning IP means that the IP holder transfers all of his rights, i.e., ownership to the assignee. It is a permanent assignment, and once it is assigned, the assignor ceases to hold an interest in his IP. For instance, if you assign your IP to anyone, then all your responsibilities towards those products end up. It means you no longer can claim or sue the assignee for issues relating to your IP. These types of agreements are suitable when you are either selling your entire business or leaving that field entirely.
Another considerable difference between the two agreements is the requirement of the notification to make them enforceable.
When it comes to IP assigning, the assignor needs to file an application stating his wish for transfer of ownership (IP rights) with the assignment recordation branch. As the IP assignment is permanent, it should be in written form. On the other side, in the case of IP licensing, one can grant the rights orally. Unlike an assignment, a written record or notification with any legal office isn’t necessary for ensuring the enforceability of rights under IP licensing.
- Payment and reversing of the transfer
IP licensing provides options for long-term payments and reversing the transfer of rights if the contract seems unprofitable. But, IP assignment expects upfront payments and doesn’t allow reverse to transfer.
How are these agreements significant?
These agreements allow the establishment of trust and act as the building blocks in the development of intellectual property. As these documents provide details of the responsibilities of each party, they play a significant role in preventing any issue related to misuse or infringement of IP. A poorly written agreement can negatively affect your hard-earned intellectual property. Hence, it is vital to set these agreements with the help of an experienced attorney who can ensure that all the responsibilities and expectations are understandable and leave no room for misconceptions. For more visit: https://www.kashishipr.com/
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