{"id":16134,"date":"2020-09-10T15:40:13","date_gmt":"2020-09-10T10:10:13","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=16134"},"modified":"2020-09-10T16:40:23","modified_gmt":"2020-09-10T11:10:23","slug":"patent-assignment-difference-between-assignment-of-patent-and-license","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/patent-assignment-difference-between-assignment-of-patent-and-license\/","title":{"rendered":"Patent Assignment: Difference between Assignment of Patent and License"},"content":{"rendered":"\n<p class=\"has-drop-cap\">A patent is considered as the transferrable property that can be transferred from the original patentee to any other person by assignment of patent or operation of law. A patent can be licensed or can be assigned only by the owner of the patent. In the case of co-owners or joint-owners, a co-owner can assign or license the patent only upon the other owners&#8217; consent.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/patent-assignment-difference-between-assignment-of-patent-and-license\/#Requirements_for_Creation_of_an_Interest_in_a_Patent\" >Requirements for Creation of an Interest in a Patent<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/patent-assignment-difference-between-assignment-of-patent-and-license\/#Forms_of_Transfer_of_Patent_Rights\" >Forms of Transfer of Patent Rights<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/patent-assignment-difference-between-assignment-of-patent-and-license\/#Difference_between_Assignee_and_Licensee\" >Difference between Assignee and Licensee<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/patent-assignment-difference-between-assignment-of-patent-and-license\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Requirements_for_Creation_of_an_Interest_in_a_Patent\"><\/span>Requirements for Creation of an Interest in a Patent<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Under Section 68 of the Indian Patents Act 1970 it provides\nfor the mortgage, license, or creation of any interest in the patent. <strong>Assignment of Patent would not be valid\nunless in writing and duly executed- <\/strong>An assignment of patent or share in a\npatent, mortgage, license, or the creation of any other interest in a patent\nmust not be valid unless the same were in writing. The agreement between the\nparties concerned will reduce to the document&#8217;s form embodying all the terms\nand conditions governing their rights &amp; obligations and duly executed.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">List of the Requirements<\/h3>\n\n\n\n<ul><li>The assignment, mortgage, or license must be reduced to writing in a document embodying all the terms and conditions governing the rights &amp; obligations between the parties<\/li><li>An application for registration of such a document must be filed in a prescribed manner in Form-16 within the prescribed time under section 68. The document, when gets registered, will have effect from the date of execution.<\/li><\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/online-patent-registration-and-filing-process-in-india\/\">Patent in India: Registration and Filing Process<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Forms_of_Transfer_of_Patent_Rights\"><\/span>Forms of Transfer of Patent Rights<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><a href=\"https:\/\/corpbiz.io\/patent-registration\"><strong>Patent Registration<\/strong><\/a> or Grant of the Patent confers to a patentee \u2018the right to prevent others\u2019 from making, exercising, using, or selling an invention without his permission. The methods in which a patentee can deal with the transfer of patent are as follows:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"627\" height=\"457\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/09\/image-45.png\" alt=\"Forms of Transfer of Patent Rights\" class=\"wp-image-16136\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/09\/image-45.png 627w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/09\/image-45-300x219.png 300w\" sizes=\"(max-width: 627px) 100vw, 627px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">1. Assignment<\/h3>\n\n\n\n<p>The term &#8216;assignment of patent&#8217; is not defined in the Indian\nPatents Act. An assignment is an act by which the patentee assigns whole or\npart of the patent rights to the assignee who acquires a right to prevent\nothers from making, exercising, using, or vending the invention. There are\nthree kinds of assignments. Those are as follows:-<\/p>\n\n\n\n<ul><li><strong>Legal Assignment<\/strong><\/li><\/ul>\n\n\n\n<p>An assignment or an agreement to assign for an existing patent is the legal assignment, where an assignee may enter his name as the patent owner. A patent that is created by the deed can only be assigned through a deed. A legal assignee entitled as a proprietor of the patent acquires all rights thereof.<\/p>\n\n\n\n<ul><li><strong>Equitable Assignments <\/strong><\/li><\/ul>\n\n\n\n<p>Any agreement that includes a letter in which the patentee\nagrees to give the certain defined share of a patent to another person is an\nequitable assignment of patent. However, in that case, an assignee cannot have\nhis name entered in the register as a proprietor of the patent. But the\nassignee can give notice of his interest in the patent entered in a register.<\/p>\n\n\n\n<ul><li><strong>Mortgages<\/strong><\/li><\/ul>\n\n\n\n<p>A mortgage is an agreement where the patent rights are wholly or partly transferred to the assignee in return for the sum of money. Once an assignor repays the sum to an assignee, the patent rights are restored to the assignor and patentee. A person in whose favor the mortgage is made must not be entitled to have his name entered in the register as a proprietor, but he can get his name entered in the register as the <em><strong>mortgagee<\/strong><\/em><sup><a href=\"https:\/\/simple.wikipedia.org\/wiki\/Mortgage\"><em><strong>[1]<\/strong><\/em><\/a><\/sup>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Licenses<\/h3>\n\n\n\n<p>The Patents Act allows the patentee to grant a License by way of an agreement under section 70 of the Act. A patentee, by way of granting a license, may permit a licensee to make, use, or exercise the invention. The license granted is not valid unless it is in writing. A license is a contract signed by the licensor and the licensee in writing. The terms agreed upon by them include the payment of royalties at a rate mentioned for all articles made under the patent. Licenses are of the following types:<\/p>\n\n\n\n<ul><li><strong>Voluntary licenses<\/strong><\/li><\/ul>\n\n\n\n<p>It is a license given to any other person to make, use, and\nsell the patented article as agreed upon the terms of the license in writing.\nAs it is a voluntary license, the Controller and Central government do not have\nany role to play. The agreement is mutually agreed upon the terms and\nconditions made by the licensor and licensee. In case of any disagreement, the\nlicensor has the right to cancel the licensing agreement.<\/p>\n\n\n\n<ul><li><strong>Statutory licenses<\/strong><\/li><\/ul>\n\n\n\n<p>The central government grants statutory licenses by\nempowering the third party to make\/use the patented article without the patent\nholder&#8217;s consent in view of public interest. For an example of such statutory\nlicenses which is a compulsory license. Compulsory licenses are defined as\n&#8220;authorizations permitting a third party to make, use, or sell a patented\ninvention without the patent owner&#8217;s consent.<\/p>\n\n\n\n<ul><li><strong>Exclusive Licenses and Limited Licenses<\/strong><\/li><\/ul>\n\n\n\n<p>It depends upon a degree and extent of rights conferred on\nthe licensee; a license can be an Exclusive or Limited License. An exclusive\nlicense excludes all the other persons, including the patentee, from the right\nto use the invention. Anyone or more rights of the patented invention can be\nconferred from the patentee&#8217;s bundle of rights. The rights can be divided and\nassigned, restrained entirely, or in part. The limitation may arise in a\nlimited license as to persons, time, manufacture, place, use, or sale.<\/p>\n\n\n\n<ul><li><strong>Express and Implied Licenses<\/strong><\/li><\/ul>\n\n\n\n<p>An express license is one where the permission to use a\npatent is given in express terms. This license will not be valid unless it is\nin writing in the document embodying upon terms and conditions. In case of\nimplied license, though permission is not given in express terms, it is implied\nfrom the circumstances. For instance, where a person buys a patented article,\neither within a jurisdiction or abroad either directly from a patentee or his\nlicensees, there is an implied license in any way and to resell it.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Transmission of Patent by Operation of law<\/h3>\n\n\n\n<p>When the patentee dies, his interest in the patent passes to\nhis legal representative. In case of the dissolution or winding up of a company\nor bankruptcy, the transmission of a patent by operation of law when occurs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Difference_between_Assignee_and_Licensee\"><\/span>Difference between Assignee and Licensee<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In turn, an assignee can reassign his rights to third\nparties while the licensee cannot change a title or cannot reassign his rights\nto the third person. An assignee is assigned with all the patent owner&#8217;s rights\nwhile the licensee cannot enjoy the rights. An assignee has the right to sue an\ninfringer while a licensee is not empowered with the right to sue any party for\nthe infringement of the patent in his name.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An assignment of patent is a transfer of all the proprietary rights by the patentee to the assignee. Simultaneously, the license is the right granted to work the invention by withholding the patentee&#8217;s proprietary rights. Knowing the difference between assignment and license from those described above, the patentee can decide the best possible way of commercializing his\/her inventions.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/process-of-patent-registration-india\/\">Detailed Process of Patent Registration in India<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A patent is considered as the transferrable property that can be transferred from the original patentee to any other person by assignment of patent or operation of law. A patent can be licensed or can be assigned only by the owner of the patent. In the case of co-owners or joint-owners, a co-owner can assign [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":16158,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[282],"tags":[987],"acf":{"service_id":"20"},"authorName":"Soumya Bajpai","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/0.jpg","authorDescription":"Soumya has done LLB (Hons) and has a 2+years experience in writing. Her main interest is in reading judgments, new enactments and amendments taking around in law. She always strives to bring the best to work that she does.","postViews":21161,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/16134"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=16134"}],"version-history":[{"count":12,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/16134\/revisions"}],"predecessor-version":[{"id":16161,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/16134\/revisions\/16161"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/16158"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=16134"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=16134"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=16134"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}