Patent Assignment —
Transfer Ownership With
Legal Certainty
A patent is a property right — it can be sold, transferred, and assigned just like any other asset. Patent assignment involves transferring the ownership of a patent or patent application from an assignor to an assignee. Without a properly drafted assignment deed and registration with the Indian Patent Office, the assignment is void against a third party. TaxClue drafts the deed, handles stamp duty, and registers the assignment on Form 6.
Register Patent Assignment
Deed drafted & IPO filing within ✅ 5–7 working days
3 Types of Patent Assignment in India
Indian patent law recognises different types of assignments — each with distinct legal implications for what rights are transferred and what obligations remain.
Complete Assignment
All patent rights transferred absolutely to the assignee
Partial Assignment
Specific rights, territories, or shares transferred — assignor retains the rest
Application Assignment
Transfer of a pending patent application before it is granted
What a Patent Assignment Deed Must Contain
Under Section 68 of the Patents Act, 1970, an assignment of a patent shall not be valid unless made in writing and signed by or on behalf of the parties to the transaction. TaxClue drafts assignment deeds that are legally watertight and accepted by the IPO without objection.
A poorly drafted assignment deed — missing key clauses, improperly witnessed, or lacking stamp duty — can be challenged as void or unenforceable. Every deed TaxClue drafts is jurisdiction-stamped and compliant with both the Patents Act and the Indian Stamp Act.
Patent Assignment Deed — Key Clauses
Assignment Process — Step by Step
From commercial agreement to IPO register — TaxClue handles every step of the assignment process.
Scope & Terms Finalised
TaxClue discusses the scope — complete or partial, consideration, warranties, territorial scope, and any back-licence to the assignor.
Day 1Assignment Deed Drafted
Deed prepared by TaxClue — all required clauses, parties, patent details, scope, consideration, and representations. Shared with both parties for review and approval.
Day 1–3Stamp Duty Paid
Stamp duty calculated for the relevant state. Deed stamped physically or via e-stamping depending on state. Unstamped deeds are inadmissible as evidence in Indian courts.
Day 3–4Deed Executed
Both assignor and assignee sign the stamped deed before two witnesses. If a foreign party is involved, deed notarised and apostilled as required for IPO acceptance.
Day 4–5Form 6 Filed with IPO
Form 6 (Application for Registration of Assignment / Transmission) filed on IPO e-filing portal with a certified copy of the assignment deed. Govt. fee paid per applicant category.
Day 5–7IPO Register Updated
IPO examines Form 6 and the deed. If satisfied, records the assignment in the Register of Patents. Assignee's name appears as owner. Certificate of assignment registration issued.
3–6 weeks6 Situations Where Patent Assignment Is Needed
Patent assignment arises in many commercial contexts — from startup IP vesting to corporate M&A. TaxClue has handled all of these.
Inventor → Startup Company
Founders file patents in personal name before the company is incorporated. Once the entity is formed, the patent application must be assigned to the company for investor due diligence and clean IP ownership. TaxClue handles both the assignment deed and the IPO Form 6 filing.
Employee → Employer Transfer
Under most employment agreements, inventions created using company resources are owned by the employer. If the patent was filed in the employee's name and needs to be transferred to the company, a formal assignment deed + Form 6 is required — the employment agreement alone does not update the IPO register.
M&A / Business Acquisition
When a company is acquired, its patent portfolio must be formally assigned to the acquirer — or to the surviving entity in a merger. A bulk assignment deed covering all patents and applications is drafted, stamped, and each patent registered individually on Form 6 with the IPO.
Selling the Patent Outright
An inventor or company that no longer intends to commercialise an invention can sell it to a buyer — individual, NPE, or company — for a lump-sum payment. TaxClue drafts the assignment deed with warranties and handles IPO registration, ensuring the buyer gets clean title.
Joint Development → Ownership Split
Where two parties co-develop an invention and agree to split ownership, a partial assignment from one co-inventor to the other (or both to a joint venture entity) is used. The deed must precisely state the fractional share being transferred and the rights of each co-owner to exploit independently.
Assignment to Foreign Entity
Indian patents can be assigned to foreign companies and individuals. The assignment deed requires notarisation and may require apostille or consularisation depending on the assignee's country. TaxClue coordinates with foreign counsel where needed and ensures the deed meets IPO requirements for foreign-party assignments.
Legal Requirements — Sections 68, 69 & 70 of the Patents Act
Assignment of Indian patents is governed by Sections 68–70 of the Patents Act, 1970. Understanding these requirements is critical — an improperly executed or unregistered assignment has severe legal consequences.
Section 68 — Assignment Must Be in Writing
Section 69 — Registration with IPO
Section 70 — Effect of Registration
Stamp Duty — Indian Stamp Act
💰 Government Fees — Form 6 Patent Assignment Registration
Form 6 fee is the same for both application assignments and granted patent assignments. E-filing attracts a 10% discount.
| Applicant Category | Form 6 Fee (Physical) | Form 6 Fee (E-filing) |
|---|---|---|
| Individual / Startup | ₹1,600 | ₹1,440 |
| Small Entity / MSME | ₹4,000 | ₹3,600 |
| Large Entity / Company | ₹8,000 | ₹7,200 |
| Educational Institution | ₹1,600 | ₹1,440 |
* Government fee is per patent / application. If assigning multiple patents, Form 6 is filed separately for each. Stamp duty is payable additionally per state — TaxClue calculates the exact amount before the deed is prepared.
❓ Frequently Asked Questions
An assignment transfers ownership of the patent — the assignor gives up all rights and the assignee becomes the new owner. A licence, by contrast, grants permission to use the patent without transferring ownership — the licensor remains the owner and the licensee gets a right to use, typically for a royalty. The key practical difference: after assignment, the assignor can no longer exploit the patent (unless a back-licence is included in the deed). After a licence, the licensor retains ownership and can grant further licences to others (unless it is an exclusive licence). For most employer-inventor transfers and M&A deals, assignment is appropriate. For commercialisation deals where the inventor wants to retain ownership while allowing a manufacturer to use the patent, a licence is more appropriate.
Yes — Section 69 expressly applies to patent applications as well as granted patents. An application can be assigned at any stage of prosecution — before examination, during examination, or after the FER is filed. The assignee steps into the applicant's position and can continue prosecuting the application in their name. Many startup transactions and investor agreements require the patent application (not yet granted) to be assigned from the individual inventor to the company entity. TaxClue handles both pre-grant and post-grant assignments — the process is the same (Form 6 with the assignment deed).
Yes — the assignment deed is a chargeable instrument under the Indian Stamp Act. The rate varies by state — for example, in Maharashtra, assignment of intellectual property is typically stamped as a "conveyance" at a percentage of the consideration value. In Delhi, the rate may differ. For nominal or intra-group transfers (e.g., from founder to their own company), the consideration is often set at a nominal amount (₹1 or ₹100), minimising stamp duty to a small fixed amount. TaxClue calculates the exact stamp duty for your specific state and consideration before the deed is prepared — preventing the deed from being challenged as insufficiently stamped and inadmissible in court.
Under Section 69(3), an unregistered assignment instrument shall not be admitted as evidence of the title of the assignee to the patent in any court unless the court otherwise directs. More critically, under Section 69(5), the unregistered assignee loses priority against a subsequent purchaser or mortgagee who registers their interest first. This means that if the assignor sells the patent again to a third party, and the third party registers the assignment before you do, the third party may be treated as the legal owner — even if you paid for the patent first. The practical message: register the assignment with the IPO promptly after execution. TaxClue files Form 6 within days of the deed being executed.
Under Section 50 of the Patents Act, where a patent is owned by two or more persons, neither co-owner can assign their share in the patent without the consent of all the other co-owners. This is a significant restriction on co-owned patents — it means that if you own 50% of a patent with a partner, you cannot sell your share to a third party without the other partner's agreement. This is one of the reasons TaxClue advises clients to carefully structure co-ownership through a joint ownership agreement at the outset — specifying consent mechanisms, right of first refusal, and exit procedures. TaxClue also advises on the structuring of partial assignments to avoid inadvertently creating co-ownership complications.
⚠️ Assignment Mistakes That Create Legal Risk
These errors are commonly made — and can result in the assignment being void, unenforceable, or challenged:
- Relying on an employment agreement or email confirmation instead of a formal assignment deed — oral and informal assignments are void under Section 68
- Not registering the assignment with the IPO on Form 6 — unregistered assignment not admissible as title evidence and vulnerable to loss of priority
- Executing the deed without proper stamp duty — unstamped deeds are inadmissible in court and may attract penalty and interest
- Missing the warranty that the assignor has clear title and no prior encumbrances — a buyer who later discovers a prior lien has no recourse without this clause
- Not specifying who handles pending prosecution (FER responses, renewals) post-assignment — leaves application in limbo if assignor stops cooperating
- Co-owner assigning their share without consent of all other co-owners — void under Section 50 and may trigger a dispute
- Foreign party assignments without notarisation / apostille — IPO rejects Form 6 applications where the deed does not meet foreign-document requirements
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Learn More →Patent Assignment Requires More Than a Signature — It Requires Registration
An assignment deed without IPO registration leaves the assignee exposed — unenforceable against third parties, inadmissible in court, and vulnerable to loss of priority. TaxClue handles every step from deed drafting to the IPO register update, ensuring the assignee gets undisputed, registered ownership.
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