How to Protect Your Intellectual Property (IP) Using an IP Agreement
Learn how to ensure that your intellectual property remains yours and understand the advantages around the protective measure.
The freelance market is hot right now. Hiring freelancers have many advantages, but there are IP considerations you have to take into account. It would be tragic to realise that you do not own your business’s logo that was created by a freelance graphic designer.
First, what is an IP Agreement?
An IP Agreement, otherwise known as an IP Assignment agreement, is used to transfer ownership of IP from one party to another, usually for a price. Apart from setting out the transfer in a legally binding contract, it also dictates the rights and obligations of both parties, along with relevant warranties and indemnities.
How do I use an IP Agreement?
One main consideration is determining the actual IP being assigned. Specificity is important here to ensure that both parties are clear on what the relevant IP is. Where possible, apart from detailing the IP, include any official registration numbers and dates if possible. It is also crucial to ensure that the future IP rights in the relevant IP are also assigned to prevent any unnecessary claims. Setting a specific date for the assignment removes any confusion of when ownership passes, so the new owner does not accidentally infringe on the previous owner’s IP rights. Depending on the IP, there may be specific clauses that could be added in to ensure maximum protection.
What are the benefits?
It is essential that the terms of that assignment are clear to prevent any potential disputes. An IP Agreement is legal proof that from the date agreed, the recipient owns the IP. The party that transferred the IP has documented proof of the agreed payment for this transfer.
More importantly, IP Agreements generally include warranties and indemnity clauses to protect the party receiving the IP. For example, if the seller knows that the IP infringes on a third party’s rights, but still transfers ownership to the buyer, the seller has to indemnify the buyer for any liability or costs relating to it.
If you are looking to assign IP or will be assigned IP, with LawPath, you can now create an Intellectual Property Agreement in under 5 minutes.
Unsure where to start? Contact a LawPath consultant on 1800LAWPATH to learn more about customising legal documents, obtaining a fixed-fee quote from our network of 1000+ expert lawyers or to get answers to your legal questions.
Dominic is the CEO of Lawpath, dedicating his days to making legal easier, faster and more accessible to businesses. Dominic is a recognised thought-leader in Australian legal disruption, and was recognised as a winner of the 2015 Australian Legal Innovation Index.