A tip for IPRs Ownership Negotiation ( for Manufacturer Side)

A intends to order a design from B for a product(invention). A and B are negotiating for a "Product development and purchase agreement"


A: Customer B : Manufacturer.

Below are the possible situations for the IPRs ownership of the Product.



1. B owns IPRs.

2. Both parties jointly own IPRs.

3. A owns IPRs if it requires so and provided that NRE fees have been paid by A in fair value of this invention.

4. Even A owns IPRs, B is granted a perpetual, world-wide, irrevocable, royalty-free license to, including but not limited to, manufacture, distribute, sell , offer for sale,import ,export the Product.


Disclaimers: The tip is provided for reference only. It is not a formal contractual text for an IPRs clause. Please consult with your lawyer for further advice.