Legal Question in Business Law in California
Partnership problems
An associate and I formed a general partnership,
developed a product, and applied for a patent. (now
pending) The application was put forth in his name
since he devised the circuitry. I was the money man,
along with the one who had the original idea.
Everything, including the partent application was
paid for on partnership checks. He now refuses to
assign the patent to the partnership, claiming that
he developed the intellectual property. I claim that
the partnership developed the IP and is the rightful
owner. Can you clarify?
2 Answers from Attorneys
Re: Partnership problems
You may have to file for a dissolution of partnership to determine rights in partnership property and for distribution. Please call me directly at (619) 222-3504.
Re: Partnership problems
The individual who developed the intellectual property, i.e. made the discovery, is entitled to have the patent issued to him individually in the first instance. However, if that individual is under contract to assign the patent rights to the business entity that sponsored the work, that entity can bring a lawsuit to enforce its rights. So, in a sense, both the inventor and the partnership are making correct statements of the law but with respect to the wrong aspects of the law. Right answer, wrong question, so to speak.
The partnership is not the rightful grantee of the patent......but may be the 'rightful owner' in the sense that it is entitled to an assignment of the patent after it is granted.
If the partnership were carefully set up and its funding of the inventor's research is well documented, it can probably bring a successful suit.
There are probably going to be many issues here, including issues striking at the continuing existence of the partnership, since the partners apparently don't get along. I recommend attorney assisted mediation before any lawsuits are filed in an attempt to save time and expense. IP suits tend to be lengthy and costly, and the technology is perishable. Try to talk it through with each side represented by counsel before you file suit.
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