If you’re planning to purchase an intellectual property (IP) for your business, you must prepare an agreement. Through this document, you can legally outline the terms of the transfer among owners. The contract protects both parties involved in the sale.
By the end of this article, you’ll be able to know how to create an intellectual property sale agreement. Let’s dive in.
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How to Write Intellectual Property Sale Agreement
An intellectual property (IP) sale agreement is a legal agreement between two parties. It outlines an intellectual property’s transfer of ownership rights between the persons in the document. Some examples of when this agreement is needed include purchasing patents, copyrights, trademarks, or trade secrets.
For example, you decided to purchase a car manufacturing company. You will need to prepare an IP sale agreement so you legally own the patents.
Now that you know the importance of this agreement, let’s talk about the intellectual property sale agreement creation process. You will need to follow these steps:
1. Identify the intellectual property in question
The first thing you need to do is to identify the IP assets that are up for sale accurately. You must check if they have the correct patent number, invention title, and issuance date.
Since copyrights, trademarks, and trade secrets don’t always get registered, the agreement needs to memorialize these assets.
2. Gather the necessary documents
You must gather the necessary documents before you start drafting the intellectual property sale agreement. The documents that you need to gather are the following:
- Registration documents
- Previously filed assignment documents
- Licensing agreements
- Other related documents that may affect ownership of the asset
If you purchase an unregistered IP asset, like a trade secret, you must gather enough technical documentation. This is how you can go about with the sale.
3. Determine the IP assets’ value
The value of the patent needs to be determined, whether the sale is being done with monetary or non-monetary compensation. You can achieve this by negotiating or using a valuation service.
Ordinary citizens don’t have the capacity to determine the value of an IP asset. This is why it may be best to hire a professional to help you properly assess the asset’s value.
4. Prepare the necessary documents
Once you’re ready to proceed with the sale, you will need to prepare the necessary documents. Have a written assignment document prepared so you can transfer ownership of the IP assets.
Some of the information needed in this document includes the following:
- Names of the parties involved
- Addresses of the parties involved
- Identification of the IP assets
- Description of the sale
Once you’re done writing the intellectual property sale agreement, it should be signed by the assignor. A witness should also be present during the signing.
5. Record the sale
Lastly, you will need to record the sale with the relevant national register. This ensures that the transfer of IP ownership has been officially recorded.
If you are residing in the US, this is done through the following offices:
- United States Copyright Office
- United States Patent and Trademark Office (USPTO)
If you reside in another country, the process may be different.
Free Intellectual Property Sale Agreement Template
When preparing the document, working with a knowledgeable attorney is best. This is so you can ensure that the process has been done correctly and there are no future hiccups.
You can also use a template from Fill to help you get started in drafting the document.
Intellectual Property Sale Agreement
What to Include When Writing an Intellectual Property Sale Agreement
The key elements that need to be included in this document are:
A clear description of the property being transferred
This will include important information about the patent, trademark, or copyright being transferred.
An explicit statement regarding the IP’s ownership and title
This section also needs to discuss if there are existing licenses or agreements related to the asset.
The warranties and representations from both parties
The document should also include necessary information regarding the property’s ownership, validity, and enforceability.
The terms of the agreement
The document also needs to detail the agreement’s terms, such as the payment and taxes.
The confidentiality clauses
Lastly, the document should contain information regarding unauthorized disclosure or use of confidential data.
Using Fill to Create Your Intellectual Property Sale Agreement
Now that you know how to draft an intellectual property sale agreement, it’s time to get started. You can create an account at Fill to start drafting the information you need on a template.
You can send the agreement to a lawyer to review your work when you’re done. This will help you both save time and energy in finalizing the terms of the sale.
