View source for Social:Transfer (patent)

{{Short description|Patent law concept}}
As objects of [[Social:Intellectual property|intellectual property]] or intangible assets, '''patents''' and [[Social:Patent application|patent application]]s may be '''transferred'''.<ref> See for instance {{EPC Article|71}} </ref> A transfer of [[Social:Patent|patent]] or patent application can be the result of a [[Finance:Financial transaction|financial transaction]], such as an [[Social:Assignment (law)|assignment]], a [[Social:Mergers and acquisitions|merger]], a [[Finance:Takeover|takeover]] or a [[Finance:Demerger|demerger]], or the result of an operation of [[Philosophy:Law|law]], such as in an [[Social:Inheritance|inheritance]] process, or in a [[Finance:Bankruptcy|bankruptcy]].

==Rationale==
The rationale behind the transferability of patents and patent applications is that it enables [[Social:Inventor|inventor]]s to sell their rights and to let other people manage these intellectual property assets both on the valuation and enforcement fronts. As [[Finance:The Economist|The Economist]] put it, 
:"''Patents are transferable assets, and by the early 20th century they had made it possible to separate the person who makes an [[Invention|invention]] from the one who commercialises it. This recognised the fact that someone who is good at coming up with [[Philosophy:Idea|idea]]s is not necessarily the best person to bring those ideas to [[Finance:Market (economics)|market]].''" <ref>The Economist, ''A market for ideas'', October 20, 2005.</ref>

==United States==
In the {{wipe|United States}}, assignment of a patent is governed by statute. Assignment of an interest occurs only by an "instrument in writing". The statute also permits recording an assignment with the United States Patent and Trademark Office, but recording is not required except to protect against "any subsequent purchaser or mortgagee for a valuable consideration, without notice....".<ref>{{USCode|35|261}}</ref>

==Security agreement==
A [[Finance:Security agreement|security agreement]] is a conditional transfer of patent ownership when patents are used as [[Finance:Collateral|collateral]] for a loan. The borrower will agree to transfer ownership of the patents to the lender if the borrow defaults on the loan. Security agreements on patents in the US are registered with the United States Patent and Trademark Office.<ref>[http://www.ipwatchdog.com/2012/06/21/getting-a-loan-with-your-patents/id=25716 Mark Nowotarski, “Getting a Loan with Your Patents”, IP Watchdog, 21 June 2012]</ref>

== See also ==
* Assignor estoppel

== References ==
{{reflist}}

[[Category:Patent law]]


{{Sourceattribution|Transfer (patent)}}