We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
Understanding Nonprofit Organization [Patents]: Legal Insights and Definitions
Definition & Meaning
A nonprofit organization, in the context of patents, is defined as an entity that operates without the intention of making a profit. Specifically, it is an organization that has not transferred any rights to an invention to a party that does not qualify as a person, small business concern, or another nonprofit. These organizations can include universities, charitable organizations recognized under section 501(c)(3) of the Internal Revenue Code, and other nonprofit entities that meet specific state criteria.
Table of content
Legal Use & context
This term is commonly used in patent law, particularly when discussing the eligibility of organizations to apply for patents or to benefit from patent rights. Nonprofit organizations often engage in research and development, and understanding their status can affect their ability to secure patents and collaborate with for-profit entities. Users can manage related legal processes through templates available on platforms like US Legal Forms.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A university conducts research and develops a new technology. As a nonprofit organization, it can apply for a patent without transferring rights to a for-profit company.
Example 2: A nonprofit educational organization creates a new educational software. It retains patent rights because it meets the criteria set by the patent office. (hypothetical example)
Relevant laws & statutes
Key legal references include:
37 CFR 1.27 - Definition of nonprofit organizations in patent law.
26 U.S.C. 501(c)(3) - Tax-exempt status for charitable organizations.
35 U.S.C. 201(i) - Definition of nonprofit organizations in the context of patent rights.
Comparison with related terms
Term
Definition
Key Differences
Nonprofit Organization
An entity that operates without profit motives.
Focuses on charitable, educational, or scientific purposes.
For-Profit Organization
An entity that operates to earn profit for its owners.
Primary goal is profit generation, often involved in commercial activities.
Common misunderstandings
What to do if this term applies to you
If you are part of a nonprofit organization looking to secure a patent, ensure you understand your rights and obligations. Consider using legal templates from US Legal Forms to streamline the process. If your situation is complex, consulting with a legal professional is advisable to ensure compliance with all relevant laws.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.
Typical fees: Varies by state and specific patent application.
Jurisdiction: Federal (U.S. Patent and Trademark Office).
Possible penalties: Loss of patent rights if obligations are not met.
Key takeaways
Frequently asked questions
A nonprofit organization is an entity that operates for purposes other than making a profit, often focused on charitable, educational, or scientific goals.
Yes, if it meets the criteria set forth by patent law, including not assigning rights to ineligible parties.
Nonprofits can secure patents while maintaining their mission-focused operations and may have access to specific funding opportunities.