Shall I apply for patent on my name? or on my company name

Shall I apply for patent on my name? or on my company name

Table of Contents

If you are an employee working for an organization, company or institute then possibility is you have an agreement where all the intellectual property generated during your tenure of employment will be on the name of that organization, company or institute.

Deciding whether to apply for a patent in India in your name or your company’s name can be a bit tricky. Let’s break it down with some simple explanations and examples to help you decide.

What to Consider

  1. Who Controls It?
    • Personal Patent: If the patent is in your name, you have full control over it. You can decide how to use it, license it, or sell it without needing anyone else’s approval.
    • Company Patent: If the patent is in your company’s name, the company controls it. This can be good if your company is the one developing and selling the invention.
  2. Liability and Risk
    • Personal Patent: If someone sues over the patent, you could be personally responsible.
    • Company Patent: The company handles any legal issues, protecting you personally.
  3. Tax Matters
    • Personal Patent: Any money you make from the patent (like royalties) is taxed as your personal income.
    • Company Patent: The money goes to the company, and it’s taxed as company income, which might have different tax benefits.
  4. Getting Funding
    • Personal Patent: Investors might be hesitant if the patent is in your name because they prefer dealing with companies.
    • Company Patent: It’s usually easier to attract investors if the patent is owned by your company, as it shows a more structured business approach.
  5. Passing It On
    • Personal Patent: If you decide to sell or license the patent, it’s easier to transfer if it’s in your name.
    • Company Patent: The patent is part of the company’s assets, which can make transferring it a bit more complex.

Table 1: What to Consider

FactorPersonal PatentCompany Patent
Ownership and ControlFull personal controlCompany controls the patent
Liability and RiskPersonal liabilityCompany absorbs liability
Tax ImplicationsIncome taxed as personal incomeIncome taxed as company income
Funding and InvestmentMay deter investorsMore attractive to investors
Succession and TransferEasier personal transferPart of company assets, potentially more complex to transfer

Examples to Help You Decide

Example 1: Personal Patent

  • Situation: You’re an independent inventor and want full control over your invention. You’re handling all licensing deals yourself.
  • Decision: Apply for the patent in your name.
  • Result: You control everything but are also personally liable for any legal issues.

Example 2: Company Patent

  • Situation: You have a tech startup, and the invention was developed as part of your company’s projects. You’re looking for investors to grow your business.
  • Decision: Apply for the patent in your company’s name.
  • Result: The patent adds value to the company, making it more attractive to investors, and the company handles any legal problems.

Example 3: Joint Development

  • Situation: You and a partner created the invention together and want to commercialize it through a joint venture or a new company.
  • Decision: Apply for the patent in the company’s name.
  • Result: The joint venture holds the patent, making it easier to manage and make decisions.

Deciding between a personal or company patent depends on your specific situation and goals. Think about control, liability, taxes, funding, and how you want to manage the patent in the future. It’s also a good idea to talk to a patent attorney or legal expert for advice tailored to your needs.

The fees structure and cost for applying and maintaining patent:

Here’s a comparison of the government fees for the patent process in India for individuals and companies in a table format:

Patent Process StageIndividual / Startups / Small Entities (INR)Large Entities / Companies (INR)
Application Filing1,6008,000
Request for Early 2,50012,500
Examination Request4,00020,000
Renewal Fees (per year)
– 3rd to 6th year8002,000
– 7th to 10th year2,4006,000
– 11th to 15th year4,80012,000
– 16th to 20th year8,00020,000
  • Individual / Startups / Small Entities: These categories benefit from reduced fees to encourage innovation among smaller players and individual inventors.
  • Large Entities / Companies: Larger organizations are required to pay higher fees.

These fees are subject to change, so it’s always a good idea to check the latest fee schedule from the Indian Patent Office or consult with a patent attorney for the most up-to-date information.

Patent Fees on Government Website 

Considering the Investor’s Point of View

investors funding your invention prefer the patent to be in the company's name rather than your personal name

Investors funding your invention prefer the patent to be in the company’s name rather than your personal name

When it comes to investors funding your invention, they usually prefer the patent to be in the company’s name rather than your personal name. Here’s why:

  1. Security for Their Investment
    • Company Patent: Investors want to ensure their money is protected. If the patent is in the company’s name, it becomes part of the company’s assets. This makes the investment safer because the company owns the rights to the invention.
    • Personal Patent: If the patent is in your name, investors might see it as a risk. They worry about what happens if you leave the company or if there’s a disagreement.
  2. Control and Stability
    • Company Patent: Investors want to have a say in how the invention is used and marketed. When the patent is owned by the company, they have more control and influence over business decisions.
    • Personal Patent: If the patent is in your name, investors have less control, which can make them uncomfortable.
  3. Future Investments and Growth
    • Company Patent: Having the patent in the company’s name can attract more investors in the future. It shows a structured and stable business, which is appealing to potential investors.
    • Personal Patent: Future investors might hesitate if they see the patent is personally owned, fearing complications in business operations.
  4. Legal and Financial Benefits
    • Company Patent: It simplifies legal and financial matters. The company can handle any legal issues, licensing, or selling of the patent, making the process more straightforward.
    • Personal Patent: Handling these matters personally can be complicated and may deter investors.

Table 2: Investor’s Point of View

AspectPersonal PatentCompany Patent
Security for InvestmentSeen as riskier for investorsProvides more security, part of company assets
Control and StabilityLess control for investorsMore control and influence over business decisions
Future Investments and GrowthMight hesitate due to personal ownershipAttracts more investors, shows structured business approach
Legal and Financial BenefitsMore complicated personal managementSimplifies legal and financial matters, handled by company

These tables summarize the key considerations for deciding whether to apply for a patent in your name or your company’s name, and how this decision impacts potential investors.

Examples with Investors in Mind

Example 1: Early-Stage Investment

  • Situation: You’re starting a tech company and looking for initial funding from investors.
  • Decision: Apply for the patent in your company’s name.
  • Outcome: Investors are more likely to fund your company because they see the patent as a secure and stable asset.

Example 2: Later-Stage Investment

  • Situation: You initially applied for the patent in your name but now seek additional funding for your growing business.
  • Decision: Transfer the patent to your company’s name.
  • Outcome: Investors feel more secure funding your company, knowing the patent is now a company asset.

From an investor’s perspective, having the patent in the company’s name is generally more attractive. It offers security, control, and stability, making it easier to attract and retain investment. If you already have a patent in your name, investors might still fund your company but could ask you to transfer the patent rights to the company for the reasons mentioned above. This approach aligns the patent ownership with the business structure, fostering confidence and encouraging investment.

reach expert patent agents and attorneys for your requirement of filing patent in India here.

Prasad Karhad
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