Anyone know anything about intellectual property?

[Lean L]

I want to start a small business using an IP that is co-owned between 4 people. Assuming that only one or two of us actually goes into the business, is there a standard for how this is handled? I assume that there would have to be a sharing of profits or a buyout. Is there an easy way to handle this? What is a standard cut for a small IP?

 

[bignateyk]

I'd block your company until you signed over 50% to me.

 

[waggy]

step 1) contact a lawyer.

 

[lxskllr]

It has become fashionable to toss copyright, patents, and trademarks—three separate and different entities involving three separate and different sets of laws—plus a dozen other laws into one pot and call it “intellectual property”. The distorting and confusing term did not become common by accident. Companies that gain from the confusion promoted it. The clearest way out of the confusion is to reject the term entirely.

https://www.gnu.org/philosophy/not-ipr.html

 

[Lean L]

https://www.gnu.org/philosophy/not-ipr.html

Okay great... Except it's wise to apply for both a copyright and a patent anyways... Good time waste

 

[lxskllr]

.. Except it's wise to apply for both a copyright and a patent anyways... Good time waste

No it isn't. You're either talking about patent law, copyright, or both. The laws are different, the concepts are different, and the application is different. Combining the two is like combining bank fraud and arson under the same discussion.

 

[Sho'Nuff]

I want to start a small business using an IP that is co-owned between 4 people. Assuming that only one or two of us actually goes into the business, is there a standard for how this is handled? I assume that there would have to be a sharing of profits or a buyout. Is there an easy way to handle this? What is a standard cut for a small IP?

<-------- Patent lawyer

DISCLAIMER: I'm not your lawyer and my comments in this post/thread are not legal advice. You rely on anything I say in this post, thread or forum at your own risk.

Your question is complicated and the appropriate course of action is often fact specific. In the scenario specified, one course of action might be to form the business, and have the owners of the IP assign (or sell) the IP to the business for an ownership interest. The amount of interest in the business each of the IP owners take in the business may depend on any number of things such as the nature of the IP (copyright, trade secret, patent, trademark, etc.) how ownership of the IP is divided, the degree to which each owner contributed to the IP in question (e.g., in the case of owner inventors), etc.

The business could also be formed and take a license to the IP in question . . . but that is a more complicated scenario. . . .

In any event, you should contact a competent business attorney who understands IP, an IP attorney who understands business formation, or both.

Good luck,

Sox

 

[Lean L]

No it isn't. You're either talking about patent law, copyright, or both. The laws are different, the concepts are different, and the application is different. Combining the two is like combining bank fraud and arson under the same discussion.

Not arguing with you. For my intents (forum question about compensation) they work the same. Now if you're doing research into attempting to challenge my terminology, you may as well be productive and actually try to answer my question.

 

[Lean L]

<-------- Patent lawyer

DISCLAIMER: I'm not your lawyer and my comments in this post/thread are not legal advice. You rely on anything I say in this post, thread or forum at your own risk.

Your question is complicated and the appropriate course of action is often fact specific. In the scenario specified, one course of action might be to form the business, and have the owners of the IP assign (or sell) the IP to the business for an ownership interest. The amount of interest in the business each of the IP owners take in the business may depend on any number of things such as the nature of the IP (copyright, trade secret, patent, trademark, etc.) how ownership of the IP is divided, the degree to which each owner contributed to the IP in question (e.g., in the case of owner inventors), etc.

The business could also be formed and take a license to the IP in question . . . but that is a more complicated scenario. . . .

In any event, you should contact a competent business attorney who understands IP, an IP attorney who understands business formation, or both.

Good luck,

Sox

Thanks for that. I was thinking of going the compensation route. I guess the percentage I would have to figure out myself. Didn't want to overpay or screw anyone over which is why I was asking. Is this standard enough to have forms or a guide associated with it?

 

[Sho'Nuff]

Not arguing with you. For my intents (forum question about compensation) they work the same. Now if you're doing research into attempting to challenge my terminology, you may as well be productive and actually try to answer my question.

The type of IP in question is pertinent to its value, which in turn is relevant to your question regarding compensation. Its also relevant to the question of ownership, freedom to operate, etc. E.g., if the IP in question is co-owned by 4 inventors, each inventor has the right to make, use, sell, offer for sale, or import the claimed invention without the consent of the other inventors, absent an agreement to the contrary. See 35 USC 262. That may not be the case if the IP is a trade secret.

 

[Sho'Nuff]

Thanks for that. I was thinking of going the compensation route. I guess the percentage I would have to figure out myself. Didn't want to overpay or screw anyone over which is why I was asking. Is this standard enough to have forms or a guide associated with it?

Depends on the situation. Assigning the IP to the company can be accomplished with a standard form in some instances. But the issue of IP valuation (i.e., compensation) is fact specific and is rarely standardized (standard copyright licenses such as those offered by BMI notably excepted). As an illustrative example, say the IP is a trade-secret computer algorithm. How does one determine the value of that algorithm, particularly as a market for the algorithm or devices using it has not been established? The answer is a lot of different ways, some of which will result in a higher valuation, and some which will result in a lower valuation.