Inventions pay the price

For ownership of an invention to pass from the inventor to another party there needs to be a contract either oral or written. Many standard tender or research contracts include a clause saying that the party paying for the project also acquires any intellectual property rights which arise from it. In arms length contracts between companies and research institutes or consultants, if there is no clause relating to ownership of intellectual property, the intellectual property will belong to whichever party has created an invention. There is often a misunderstanding on the part of the persons paying for research that they should naturally own the intellectual property rights because they have paid for the work to be done. Joint ownership of patents is an acceptable arrangement where both parties are relatively equal in resources and interest. Joint ownership is like tenancy in common and the manufacturer can make and market the invention without any need to consult or compensate the other owners. Disputes between joint owners can be resolved by application to the Commissioner of Patents.