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  1. If the inventor used their employer’s resources, equipment, and time to develop the invention, the employer may have more substantial ownership claims. However, if the reverse is the case, the employee will likely be granted the ownership patents. Depending on the situation, the employer may also receive an implied license to use the patent.

    • What Is A Patent?
    • Employers Routinely Control Employees' Patents
    • Shop Rights Provide Additional Avenues of Control to Employers
    • Consult Your Attorney

    As a gateway matter, we must first understand the definition of a patent. A patent is an exclusive right granted to an inventor by the government—specifically, the U.S. Patent and Trademark Office—that permits the inventor to prevent other companies or individuals from selling or using the invention for a period of time. The invention could be a dr...

    The general rule is that you own the patent rights to an invention you create during the course of your employment unless you either: 1. signed an employment agreement assigning invention rights, or 2. were specifically hired (even without a written agreement) for your inventing skills or to create the invention. In practice, one of those two excep...

    Importantly, even if your employer does not acquire ownership of the patent under one of these two methods—the pre-invention assignment or the work-for-hire doctrine—the employer may still acquire a limited right to use your patent (called a "shop right") without paying you. Shop rights arise when an employee uses an employer's resources to create ...

    Before signing an employment agreement, consider whether you are likely to invent a product or some other innovation during the course of your employment. If so, beware of pre-assignment clauses of your patent rights. Indeed, you should work with an attorney who has patent experience, in order to clarify your concerns and negotiate as narrow an ass...

  2. Jul 7, 2021 · Determining whether an employer or an employee owns the intellectual property of a work produced during the course of employment can be challenging. While an employer may have invested significant resources to facilitate the production of an invention and wish to capitalize on their investment, their employee also likely devoted significant ...

  3. The general rule in Canada is that an employee will own his or her own invention unless there is a contractual duty to transfer the invention to the employer. Ultimately, the key variable to determine the issue, if there are no specific provisions in a written employment agreement, is whether the particular duties and responsibilities assigned to the employee include an obligation to invent ...

  4. May 22, 2024 · The general rule is that, in the absence of a written agreement to the contrary, an employer has a nonexclusive license to use an invention devised by an employee while working for the employer. In the context of patents, this is the shop right doctrine. Although the employer has a nonexclusive license to use the invention without paying ...

  5. Apr 13, 2021 · 8 factors to determine if an employee was “hired to invent” 1: the employee was hired expressly for the purpose of inventing; the employee had previously made inventions; the employer put in place incentive plans to encourage inventions; the conduct of the employee following the invention’s creation suggests that the employer is the owner;

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  7. Mar 26, 2008 · The employee may have the duty to license the invention at no cost to the employer. This is called the “shop right rule.”. A shop right is a nonexclusive license to use, manufacture and sell an invention without financial obligation to the inventor. However, the employee retains ownership of the patent. Inventions made on the employee’s ...

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