Summary: Intellectual property agreements safeguard your innovations and ensure legal protection. These contracts outline ownership, usage rights, confidentiality, and dispute resolution. Learn about various IP agreements, their importance, and how they protect both business and creative works.
Intellectual property agreements are a license for innovation and creativity. In fact, the US State Department calls them “The lifeblood of our economy.”
As the owner of a patent, copyright, or trademark, you can ensure your business offers a unique value proposition. You’ll have a competitive advantage and even increase your company’s overall valuation.
But what happens if an innovator leaves your company or IP ownership is in dispute? Do you have a plan in place to allow other companies to use your IP?
Without a contract, your industry-shifting creation may be in jeopardy. There need to be rules in place to secure your IP in a range of scenarios. Protection begins when you claim ownership of your intellectual property and draft an intellectual property agreement.
In this guide, we’ll share all there is to know about intellectual property agreements. Continue reading to protect your creation and experience the benefits of this crucial contract.
Intellectual Property Agreement: A Definition
An intellectual property agreement is a contract between two or more parties that establishes ownership of specified intellectual property. On the most basic level, your agreement must state ownership and the responsibilities of the other party. It should also clearly outline how the IP can be used and by whom.
Strong IP agreements include details about confidentiality. They should outline what to do if one party is in breach of the agreement. Agreements typically stipulate a clear duration for the contract. Furthermore, they detail valid reasons and circumstances to terminate the agreement.
As contacts, IP agreements are legally binding and can be enforced by the court system. That’s why they also include details about dispute resolution and contract enforcement. Their role is to ensure accountability for both parties with an added layer of transparency.
Types of Intellectual Property Agreements
There are many types of intellectual property agreements. That’s why a boilerplate intellectual property agreement template may not serve your interests. Your IP agreement should be specific, professional, and legally binding.
Certain types of contracts are more common when protecting commercial IP for business. These include the following.
Intellectual Property License Agreements
A basic agreement that outlines how a company can use a patented or copyrighted IP commercially. They are used to grant rights to another party to perform a task for compensation. Such contracts can be used to grant exclusive rights to sell or distribute your IP. They can also be used to grant non-exclusive rights.
Non-disclosure Agreements (NDAs)
An agreement that establishes a confidential relationship between two parties. It outlines how information related to IP can be used or shared. These may be used when two parties are considering entering into a professional relationship or partnership. For example, a new hire may sign an NDA during onboarding.
Intellectual Property Transfer Agreements
A contract that transfers ownership of IP from one party to another. This is sometimes known as an assignment agreement of intellectual property. Transfer agreements may be between two companies or between a company and an employee or service provider. It ensures the original owner retains certain rights over their original IP.
The types of assignments used in transfer agreements include:
- Patents
- Copyrights
- Trademarks
- Designs
- Know-how
- Geographical indications (GIs)
Work-for-Hire Agreements
A contract that protects your IP when hiring a contractor or freelancer. It ensures a clear understanding of who owns work completed during the relationship. In some cases, this agreement could give the contractor some rights to their creation. In others, it clarifies that contractors surrender rights to any work created during the relationship.
There are other types of intellectual property agreements that protect IP in a number of novel scenarios. For example, data use agreements, option agreements, and franchising agreements. A legal professional can help you determine which agreement is appropriate for your IP and situation.
When Do You Need an Intellectual Property Agreement?
There are a few specific situations in which it is valuable to have an intellectual property agreement in place. These include:
- When licensing your IP to another party
- When negotiating a partnership
- When hiring a contractor or freelancer
- When hiring a new employee who will engage with the IP on the job
- During a merger or acquisition
Intellectual Property Agreements for Creatives
Intellectual property agreements also protect the work of artists and other creatives, including writers and inventors. The types of agreements creatives use are similar but distinct from business contracts.
For example, a playwright might use an artist agreement to license the rights to perform a dramatic work. A fine artist might use the same agreement to lend a painting or sculpture to a gallery for an exhibit. Such contracts have the same legally binding, defensible nature as IP agreements for business.
Other Ways to Secure Intellectual Property
Your IP is valuable, and protecting it is key to earning back your investment. Ensure your IP is registered with the appropriate government agency.
You might also consider using an escrow service to create an IP audit trail. This establishes, protects, and verifies IP rights and independently corroborates your ownership. In other cases, you may wish to use IP as collateral, which requires unique protections from an escrow agency.
Learn more about IP collateral and investment protection and secure your mission-critical IP today.