Innovation through collaboration? Take care of your patent rights

An entrepreneur cannot do everything themselves. Innovation often requires collaboration with other parties, such as R&D partners, external developers, or specialized suppliers. But beware: simply paying the bill does not automatically mean that you become the owner of an invention. Without clear agreements, you could easily be sidelined.

Who is entitled to a patent?

In principle, the right to apply for a patent lies with the inventor. If there are multiple inventors, they share this right. In employment situations, the patent right usually transfers to the employer. However, if you work with an external party or freelancers, this becomes significantly more complicated.

Marco Coolen, photo © Bart van Overbeeke

Without a contract that clearly sets out the ownership rights, the other party can easily apply for a patent on the invention you have worked on together. This can have significant consequences. Suppose your company has invested in an innovation, but a partner or supplier subsequently files a patent application independently. As an entrepreneur, you could suddenly find yourself in legal infringement of an invention to which you contributed. Your investment would then be worthless.

Why proactive agreements are crucial

For innovations involving multiple parties, it is essential to establish in advance who will hold the rights. This prevents confusion, legal disputes, and unpleasant surprises later on.

What can you include in a collaboration agreement?

• Who will own the patent: Agree whether one party will hold the patent rights or whether they will be jointly owned.
• Licenses and rights of use: If an external party applies for the patent, arrange how you retain the right to use or commercialize the innovation.
• Obligations in a patent application: Clearly define agreements regarding who bears the costs and who is responsible for the process.
• Confidentiality and secrecy: Ensure that sensitive information is not shared or used for other purposes without permission.

What if you don't make these agreements?

Without clear agreements, you run the risk that the other party will apply for a patent independently and take control of the innovation. You could then find yourself in a difficult situation where you have to negotiate licenses or even start legal proceedings to secure your rights. This is not only time-consuming and costly, but can also damage your business relationships.

Collaborating on innovation offers enormous opportunities, but only if the agreements are properly arranged. Establishing ownership rights and patent agreements helps prevent problems and provides your company with the security it needs to grow.

So, don't wait until your innovation is complete before considering patents. By making clear agreements in advance, you ensure that you are in a strong position and remain in control of your innovations. With a good deal, you are ready for successful business development.