IP Assignment Agreement Explained

Standardized Legal Documents IP Assignment Agreement Explained

Discover the Easiest Way To Create an IP Assignment Agreement 

Intellectual property includes intangible assets created by a person, including inventions, artwork, designs, software, logos, and brand names used in commerce. 

All intellectual property is protected by different rights, including copyright, trademarks, and patents, to foster an environment of innovation. In commercial sectors, intellectual property is considered the biggest asset of a company. 

Do you want to create an IP assignment agreement but don’t want to go through the challenging process? DoNotPay offers a step-by-step guide to writing a contract and a practical tool to create various legal documents


What Is an IP Assignment Agreement, and Why Is It Required?

An IP assignment agreement is a contract that facilitates the transfer of intellectual property ownership from one entity to the other. The contract allows the seller to get paid for the intellectual property while the buyer is free to use it however they see fit.  For all IP assets protected by trademarks and copyrights, the assignment must be in writing to be applicable.

Types of Intellectual Property Rights

Check out the main types of intellectual property rights in the table below:

Intellectual Property Rights

Explanation

Patent Grants property rights to an inventor in science and technology
Trademark Protects a symbol, phrase, or word that symbolize a specific product
Copyright Guarantees exclusive rights over various works of authorship
Trade secret Safeguards confidential secrets that give a business a competitive advantage on the market

Why Are Intellectual Property Rights Important?

IP rights are important because they are an essential part of brand identity. Organizations need to define intellectual property rights for the following reasons:

  • Proper management of business operations
  • Preventing conflict of interest
  • Risking future acquisitions
  • Risking raising capital

Business owners must practice transparency when dealing with intellectual property because it is a sign of professionalism and fair play.

How Can You Create an IP Assignment Agreement Yourself?

Although managing IP assets can be tricky, it is essential to regulate this aspect of your business. Many people prefer hiring a lawyer to assist them because it prevents potential liabilities and disputes and protects you from lawsuits. If you can’t consult a lawyer, you can look up contract templates online.

While drafting the document, you must make sure that the agreement is in accordance with your state’s laws. Here are vital sections to include in the IP assignment agreement:

  • Types of intellectual property assigned. This includes copyrights, patents, trademarks, and trade secrets
  • All intellectual property acquired through project-based work
  • Inventions retained and licensed
  • Assignment of inventions
  • Timing of the assignment
  • Assignment of moral rights
  • Maintenance of invention records
  • Patent and copyright registrations
  • Governing law
  • Severability

Along with the IP assignment agreement, both parties will also have to sign the non-disclosure agreement to ensure that no clause of the agreement is disclosed to any third party.

What Happens if You Violate the IP Assignment Agreement?

An intellectual property rights agreement is legally binding. If any party violates the contract, harsh penalties apply because intellectual property theft and infringement are federal crimes. Violations can entail:

  • Fines
  • Imprisonment ranging from several months to several years
  • Confiscation of stolen property and documents
  • Suspension of business license 

The punishment varies depending on the nature of the crime. Most penalties start from a $250,000 fine or up to three years in prison. This amount can go as high as a $5 million fine or 20 years in prison. 

There are strict penalties for intellectual property theft, so make sure you consult a lawyer to help you understand how IP assignment works. 

DoNotPay Can Draft Legal Documents for You

Although you have the option to download a generic template for legal documents, most of them are not able to encompass all the clauses you require. Online templates are rarely spell-checked and have various grammatical errors and outdated clauses. 

Why go through the hassle of editing an outdated template when you have DoNotPay to draft various legal contracts and agreements for you? All you have to do is follow these straightforward instructions:

  1. Sign up for DoNotPay
  2. Type the name of the document you want to create
  3. Answer the questions from our chatbot to personalize the document
  4. Print the document and sign it

If the document requires notarization, DoNotPay has the solution! Our Standardized Legal Document tool is integrated with the Notarize Any Document feature, so you can do both in the same app!

What Documents Can DoNotPay Create?

Ditch expensive lawyers and save your time by choosing DoNotPay to draft your contracts. We can create the following documents for you:

  1. Non-Disclosure Agreement
  2. Independent Contractor Agreement
  3. Bill of Sale
  4. General Business Contract
  5. Non-Compete Agreement
  6. LLC Operating Rules Document
  7. Residential Lease Agreement
  8. Intent To Purchase Real Estate
  9. Estoppel Certificate
  10. Quitclaim Deed
  11. General Affidavit
  12. Promissory Note
  13. Prenuptial Agreement
  14. Child Care Authorization Form
  15. Child Custody Form

Even if your specific document is not available, we are continually adding more customizable templates to our list, so stay tuned! 

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