Turning ideas into assets
 

Selection of agreement

Transfer of ownership or transfer of use?
The decisive factor for which agreements should be used for trading a right is first and foremost whether the transfer of the right regards ownership (purchase/sales agreement) or use (licence agreement).

The choice between the transfer of ownership and the transfer of use will also depend on a large number of financial considerations, including, for example:

  • A desire to sort out payment once and for all.
  • The opportunity to find a basis for determining a purchase sum.
  • A desire to limit the business's rights based on either time or geography.

Purchase/sales agreements
In purchase/sales agreements the seller transfers all rights in relation to the invention to the buyer, including the right to make decisions on surrendering the right and further transfer, as well as the right to prevent third parties acting in conflict with the exclusive right to the invention. You can read more about purchase/sales agreements here.

Licence agreements
In licence agreements the Licensee acquires only the right to rule over the invention in the manner and within the agreed period of time described in the agreement. You can read more about licence agreements here.

The choice between an exclusive or non-exclusive licence agreement depends on whether you want to limit yourself to cooperation with a single partner, or whether you want to spread your technology among as many different licensees as possible.

Standard contracts for trading patents and utility models
The Danish Patent and Trademark Office, supported by Kammeradvokaten and in cooperation with the Confederation of Danish Industries, The Danish Chamber of Commerce, the Association of Danish Intellectual Property Attorneys (ADIPA), the Inventors Association DK, the Danish Association of Inventors, Danish Regions, The Association of Danish Law Firms, the Danish Bar and Law Society and Local Government Denmark have developed four standard contracts that take their starting point in trading patents and utility models. You will find the standard contracts here.

Although, do remember that these are standard contracts. Therefore, before entering a definite agreement, you should seek professional advice, so that the agreement suits your specific situation.

For more information on IP Advisors