What Happened
Patent ownership seems straightforward: the inventor assigns to the company, the company records the assignment, done. But in practice, chain of title issues cause real problems. Missing assignments, defective documents, corporate changes—any of these can undermine your right to enforce a patent.
Why It Matters
Only the patent owner (or exclusive licensee with all substantial rights) can sue for infringement. If your chain of title has gaps, defendants will challenge your standing. They'll demand documents, take depositions, and file motions to dismiss.
Common problems: Employee inventions never got assigned properly. Contractors didn't sign assignment agreements. Founders left before assigning their rights. Companies merged or changed names without updating assignments. Universities retained rights in federally funded research.
The fix is often possible—nunc pro tunc assignments, confirmatory documents, reissue applications—but it's easier to prevent problems than cure them.
What You Should Know
If you're building a patent portfolio, implement rigorous assignment practices. Every inventor signs a written assignment. Record assignments promptly at the USPTO. Track corporate changes and update assignments accordingly.
If you're acquiring patents, conduct thorough due diligence. Verify the complete chain of title. Identify and fix defects before closing. Don't rely on representations alone—check the actual documents.
If you're enforcing patents, audit your chain of title before filing suit. Nothing kills a case faster than a standing challenge that reveals missing assignments.
Ownership is foundational. Get it wrong, and nothing else matters.