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The Chain of Title Trap: How to Protect Your Patent Rights Before It’s Too Late

17 November 2025

17 November 2025

 

In patent law, a brilliant invention is only half the battle. The other half is proving—on paper—who owns it. A missing signature or unclear transfer can destroy the value of an entire patent portfolio.

When “Internal Understanding” Isn’t Enough

A client came to us after setting up a new IP holding company to manage a fresh line of technology. They’d filed an Australian provisional and a PCT under the new entity—so far, so good.

But when we dug into the ownership records, something didn’t add up. The inventors were employed by the parent company, not the new IP holding company. There were no signed assignment agreements transferring rights from the parent to the new entity.

In short, the new holding company wasn’t properly entitled to the patent at the time of filing—a serious issue that could have jeopardised both entitlement and priority claims worldwide.

Fixing the Weak Links

We worked fast to stabilise the client’s position.
Our team prepared a confirmatory deed of assignment, ensuring:

  1. The inventors’ rights first flowed to the parent company (through employment contracts).

  2. The parent then assigned those rights to the new IP holding company.

  3. Any overlooked rights were covered through “catch-all” clauses.

Crucially, we preserved the company’s right to claim priority without reopening old wounds. The approach held up under European scrutiny and restored confidence in the portfolio’s ownership structure.

Key Takeaways for Every Business

  • Document everything early. Patent rights don’t automatically “flow” within corporate groups.

  • Check your employment contracts. Ensure inventors’ rights are clearly assigned to the right entity.

  • Complete assignments before filing. Avoid uncertainty about who actually owns the invention.

  • Patch gaps quickly—but don’t rely on patches. Confirmatory deeds are backups, not best practice.

The Bottom Line

Don’t assume your IP is safe just because it’s all “in the family.” Patent law demands precision, not assumptions. One missing link can unravel years of work and investment.

Protect your chain of title before it breaks.
Contact IP Solved today for an IP portfolio audit or entitlement review—before it costs you your rights.

 

 

17 November 2025
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