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A patent doesn’t expire when its owner passes away. Instead, it becomes part of the estate, just like real estate or investments. The rights to the patent can be transferred to heirs, beneficiaries, or business partners, depending on the owner’s estate plan. If no plan is in place, state law determines who inherits it. In some cases, patents continue generating income through licensing agreements or royalties. Keeping a patent active after the owner’s passing requires careful management, including meeting legal deadlines and handling financial responsibilities to preserve its value.
Who Inherits a Patent?
A patent, like any other asset, transfers to heirs or beneficiaries after the owner’s passing. If the owner had a will or trust, those documents determine who inherits the patent. A properly drafted estate plan can ensure the patent goes to a specific person, business partner, or trust for future management.
Without a will, state intestacy laws dictate who receives the patent. Typically, a spouse or children inherit it, but the process can become complicated if multiple heirs are involved. Executors and trustees are key in managing the transfer, ensuring that all legal requirements are met.
If a business owns the patent, its operating agreement or corporate structure will determine how ownership changes. In some cases, patents may be sold, transferred, or licensed to maintain their value. Regardless of the situation, proper handling of the patent helps avoid disputes and keeps the invention protected.
How a Patent Generates Value After the Owner’s Death
A patent can continue generating income long after the owner’s passing, making it an important asset for heirs or beneficiaries. If the patent was already licensed, the estate or new owner continues to receive royalties under the existing agreements. These payments can provide a steady source of income for years, depending on the patent’s remaining lifespan.
If the patent wasn’t licensed, heirs have the option to sell or license it. Selling the patent transfers ownership entirely, while licensing allows the new owner to maintain control while earning revenue from businesses that use the invention.
For patents tied to a business, proper succession planning ensures the company retains the rights necessary for operations. Without a clear plan, disputes can arise over ownership and control. Maintaining the patent by paying required fees and enforcing its rights helps preserve its value and prevent unauthorized use by competitors.
Legal and Financial Considerations
Managing a patent after the owner’s passing involves legal and financial responsibilities that heirs or executors must address. Without proper handling, a patent can lose value or even lapse. Key considerations include:
- Maintenance fees: Patents require periodic payments to stay active. If fees aren’t paid on time, the patent can expire early, making the invention available to the public.
- Ownership transfer: A formal transfer process must be completed through the U.S. Patent and Trademark Office (USPTO). This ensures the patent is legally recognized under the new owner’s name.
- Ongoing litigation: If the patent was involved in a legal dispute before the owner’s passing, the estate or new owner may need to continue the case.
- Tax implications: Patents are considered assets and may be subject to estate taxes. Proper estate planning can help reduce tax burdens for beneficiaries.
Addressing these issues promptly keeps the patent protected and financially beneficial for heirs.
How We Can Help Protect Patent Rights
At Gearhart Law, we help patent owners and their families protect intellectual property rights during and after the owner’s lifetime. Whether you need to include a patent in your estate plan or transfer ownership after a loved one’s passing, we can guide you. We assist with formal ownership transfers, ensure maintenance fees are handled, and provide legal support for licensing or enforcement. If you’re inheriting a patent, we help you manage its value while avoiding legal complications.
Contact Our Experienced New Jersey Patent Attorneys
Patents don’t disappear when the owner passes away—they become part of the estate and require careful management. At Gearhart Law, we help ensure patents remain protected and profitable for heirs. If you need assistance with patent transfers or estate planning, contact us today to discuss your options.