Owning a patent provides significant legal and financial benefits. These include the exclusive right to prevent others from manufacturing, selling, using, or importing the claimed invention, and the ability to enforce these rights against infringers.
For businesses, it is essential to establish ownership correctly. A company can only be the patent owner if the inventors have formally transferred their rights. This is why a patent assignment is critical, especially when employees create intellectual property (IP) in the course of their work.
A patent assignment occurs when one party (the assignor) transfers all or part of their rights, title, and interest in a patent or patent application to another party (the assignee). The assignee then holds the exclusive rights to:
If a company wants to benefit from patent rights, it should ensure that it owns the patents produced by its inventors. This ownership is secured through a proper assignment process.
These two concepts are often confused:
To secure ownership of employee-created IP, companies should implement strong employment contracts. These should include:
Employers should also encourage the use of invention disclosure forms and may offer incentives for innovation.
Independent contractors, joint collaborators, or researchers affiliated with academic institutions may also generate inventions. In such cases, formal agreements—similar to employee contracts—are necessary to ensure proper transfer of rights before they begin work.
Assignments should be obtained for each new patent application, in addition to signed employment contracts. While employment agreements set out general obligations, they may not specify particular patent applications. To avoid disputes, it is best to secure assignments at the time of filing.
A valid assignment should:
In the Philippines, assignments can be recorded with IPOPHL to secure enforceability and provide notice to the public. Failure to record may leave room for disputes over ownership.
If patents are filed abroad, it may be necessary to record the assignment in those countries as well, since some jurisdictions only recognize the assignee’s rights upon proper recordation. Each country may have its own formal requirements, so consultation with local IP counsel is recommended.
If an inventor refuses to sign, the company may rely on employment agreements, invention disclosures, or internal policies as supporting evidence of ownership. However, securing written assignments early helps avoid complications.