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Intellectual Property

Intellectual Property Ownership

A cofounder left and says the code is partly his. A contractor designed your logo and never signed anything. Intellectual property ownership often stays unclear until someone needs to rely on it, such as an investor or a buyer.

Reviewed

01 GUIDE

Intellectual Property Ownership: what usually happens

Default rules that surprise people

For copyright, work created by an employee within the scope of employment generally belongs to the employer, but work by an independent contractor usually belongs to the contractor unless it is assigned in writing or, for certain narrow categories of work, covered by a signed work-for-hire agreement. For patents, rights start with the inventors, and an employer typically needs a written assignment, often in an employment agreement, to own them outright. In some circumstances an employer without an assignment may still have a limited right to use an invention made with its resources. Trademarks belong to the business that uses the mark to identify its goods or services, not to the designer of the logo.

Joint ownership has consequences

When two or more people co-own a U.S. patent, each can generally use and license it without the others' consent and without sharing the proceeds, unless an agreement says otherwise. Co-owners of a copyright can each use the work and grant nonexclusive licenses, but generally must account to the others for profits. Joint ownership can also complicate enforcement, since co-owners may need to join a lawsuit. These rules make cofounder and collaboration agreements far more important than they look at the start. For trademarks, ownership fights between cofounders often turn on which entity actually used the mark in commerce.

Cleaning up the record

We start by mapping who created each important asset, when, and under what agreement. Bring employment and contractor agreements, founder agreements, invention assignment forms, registrations, and any correspondence about ownership. Gaps can often be closed with confirmatory assignments, though people who have left may ask for something in return. Assignments should be recorded where recording is available, and company records should match the registrations. Investors and acquirers usually check this, so fixing it early tends to cost less. When a dispute is already underway, the order in which records are requested and assignments are sought can matter.

02 ATTORNEYS

Who you would be working with

Attorneys at our New York and Washington, D.C. offices handle matters like this one.

03 CASE RESULTS

Matters we have handled

Prior results do not guarantee a similar outcome.

05 HOW WE WORK

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We deliver coordinated and effective legal services to our clients, utilizing our extensive legal resources and experienced attorneys in our well-integrated global network. Through our Washington D.C. and New York offices, together with our alliance

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Multidisciplinary & Efficient Solutions

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06 OFFICES

Where we meet clients

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New York

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(855) 529-7557

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(424) 561-7557

Attorney Advertising. This page is general information about intellectual property ownership and is not legal advice. Reading it does not create an attorney-client relationship. Outcomes depend on the facts of each matter, and prior results do not guarantee a similar outcome. Laws differ by state and change over time.