Hi , I hope you doing great today!!!

Before the weekend begins, I want to share with you why you need to have IPAA.

Certain contracts are a must-have for any business but an important Contract that you need to have if you run a tech business or a tech-enabled business is the INTELLECTUAL PROPERTY ASSIGNMENT AGREEMENT ( IPAA)

Intellectual property is unarguably one of the most valuable assets in tech or tech-driven businesses.

Intellectual properties are products of the mind.

This includes works, inventions, software, artistic, literary images, words, symbols names, etc which are the results of creativity and which can be protected through Copyright, Trademark, Patents, industrial designs, or even via trade  secret protection.

Intellectual property Assignment Agreement is a written contract that transfers the ownership right in anything ( work product) created by an employee, developer, consultant, etc.

This makes it possible for the company rather than the employee or the creator of that invention or work product now becomes the actual owner of the intellectual property.

Basically, there are two types of Intellectual Property Assignment Agreement

(1) Technology Assignment Agreement:

 This is a written contract between a Company and a developer (not being an employee) in which the developer transfers the intellectual property rights in a software or work product to the company in exchange for cash or equity in the company. 

This is usually before the incorporation of the company

(2) Invention Agreement:

 This is a written contract between the company and the employees of the company whereby the employees transfer to the company in advance all the inventions, work products, designs, etc. relating to the business of the company.

This ensures that intellectual property rights in the inventions are owned by the company and not the employee.

Please understand that in the absence of any agreement to the contrary, Intellectual property rights belong to the creator of the work or work product in the first place so there is a need to actually transfer such rights to the company.

Also, an Intellectual Property Assignment Agreement ensures that all the rights in an invention, work product, software, etc are assigned to the company and also helps in protecting the company against unhealthy rivalry and competition.

Investors want to know that the company actually owns the intellectual property rights in the software, work products, inventions, etc. created by either the developer or employee before they decide to fund your business.

So if you run a tech start-up or you are thinking of starting or investing in one, among other things, this is one very key area you should be concerned about.

There you go!

I hope this was helpful to you ?

Feel free to reply and let me know your thoughts...

I will personally read and respond.

Cheers!

Barinaada.