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Intellectual Property (IP) Agreements

What is an intellectual property assignment agreement?

An intellectual property assignment agreement is a contract between two institutions outlining the terms for the buying and selling of intellectual property rights. It states the rights and responsibilities of each party with regards to IP that may be created by the teams when they are collaborating. The IP agreement also outlines the rights linked to IP that is created collaboratively as well as IP created by each individual party. It can also be referred to as an intellectual property transfer agreements or an intellectual property agreement. Why is it important to have one?

For startups in particular, this document is a necessity. It is one of the documents that an investor will look for when deciding whether or not to invest in your company. Ideally, startup founders should completely own all IP that has been created during company formation. Legal ownership will keep other companies that plan to steal your product idea at bay, and aside from this, investors require the agreement legally.

Types of IP assignment agreements:

A technology assignment agreement: your company is assigned any intellectual property before the company is formed. Under some circumstances, the developers can retain individual intellectual property rights, or could sell you the rights in exchange for equity or cash.

An invention assignment agreement: this will assign a newly formed company ownership of IP created by staff after the company is created. This agreement will usually contain employees and founders as signatories to an invention assignment agreement and a confidentiality agreement.

If you’d like to know more about Intellectual Property Assignment Agreements, have a look at these links:

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