Whenever anything is invented or created, the issue of its protection arises at once. The work done by someone can be misused by others in various ways. Sometimes it is stolen and given another name and sometimes it is modified to change its look and fake the ownership. Numerous ways are present out there to deceive the public from knowing its actual ownership. Legal protections are given to the owners of different kind of properties to ensure a safe work environment. Patent and copyright are the tools to ensure protection of the work created.
Intellectual property sale agreement is entered into by the party who is the owner of the intellectual property and wants to transfer the rights of intellectual property to another party and the other party who is interested in buying the intellectual property. The party selling the intellectual property is seller/assignor and the one buying it is buyer/assignee. Both parties enter into the agreement because they are independent and capable to enter into any agreement. Before finalizing the agreement, drafts are prepared by both parties and independently checked by the respective authorities. The keen perusal of the drafts allows any deficiencies to be sorted out in advance. Hence an effective agreement comes into force. All the rights and title to the intellectual property is transferred to the buyer in exchange of certain sum of money. Either a one time payment is made to the seller or a share in royalty is given to the seller. Royalty is more profitable as it pays handsome amount to the seller for a long period.
Here is preview of a Free Sample Intellectual Property Sale Agreement Template created using MS Word,
Intellectual property sale agreement templates are available online which can be customized to suit requirements of the business. They contain standard terms and conditions which must be made a part of this kind of agreement. These are as follows:
- The definition of the terms like seller/assignor, buyer/assignee, intellectual property and technology etc must be mentioned in the agreement to avoid ambiguities. This is also a formal requirement of this agreement.
- The consideration which has been agreed upon by both parties in exchange of the intellectual property. It should be mentioned in vivid digits as well as alphabets. Also the mode of payment needs to be mentioned and one of the clauses. The time period when the payment will be made also requires light.
- The major part of any agreement consists of representations and warranties. It is incumbent on the seller to represent the fact that the property being sold is under his ownership and no one else holds title to it at any cost. If at any point the title of third party is proved by the buyer then all losses will be borne by the seller. Seller should also make a statement that he is authorized to enter into this agreement and there is no liability on him regarding the property or any case is pending.
- If at any point, there arises a need to modify the terms and conditions of the agreement then what procedure will be adopted? The answer to this question must be given in this section. Usually the modification can only be done in written form. So the method needs to be mentioned.