Invention Assignment: Key Insights into Intellectual Property Ownership

Definition & Meaning

An invention assignment is a legal agreement in which a founder or developer transfers their rights to intellectual property created after a company is incorporated. This means that any intellectual property developed by the founder, either alone or with others, belongs to the company, not the individual. The agreement may also include a list of any prior inventions that the founder wants to keep ownership of, particularly those related to the company's business.

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Real-world examples

Here are a couple of examples of abatement:

  • (Hypothetical example) A software developer creates a new application while working with a startup. Under the invention assignment, the rights to this application belong to the startup, ensuring they can use and monetize it.
  • (Hypothetical example) A co-founder of a tech company has developed a unique algorithm before the company was formed. They can include this algorithm in the invention assignment to clarify that they retain ownership of it, while all future developments will belong to the company.

State-by-state differences

Examples of state differences (not exhaustive):

State Key Differences
California Specific laws regarding employee inventions may apply.
New York May have different requirements for documenting prior inventions.
Texas State laws may affect the enforceability of certain clauses.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Key Difference
Intellectual Property Agreement A broader term covering various agreements related to IP. Invention assignments specifically focus on transferring rights of inventions.
Non-Disclosure Agreement (NDA) An agreement to protect confidential information. An NDA does not transfer ownership of inventions; it protects information.

What to do if this term applies to you

If you are a founder or developer, consider drafting an invention assignment to clarify ownership of intellectual property. You can use templates from US Legal Forms to create this document. If your situation is complex, consulting with a legal professional is advisable to ensure your rights are protected.

Quick facts

  • Typical fees: Varies by legal counsel.
  • Jurisdiction: Generally applicable in all states.
  • Possible penalties: Enforceability issues if not properly documented.

Key takeaways

Frequently asked questions

Its purpose is to ensure that all intellectual property created by founders or employees is owned by the company.