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For founders
IP when you outsource development
An agency built part of our product. Who owns it?
Whoever the contract says, in writing - and if the contract is silent, probably not you. Payment does not transfer patent rights in India.
What the contract has to say
A present assignment of inventions and of copyright in deliverables, covering both. A statement of what background IP the agency brings and what licence you get to it. And a warranty about third-party components used in the deliverables.
That last one matters more than founders expect. Agencies routinely incorporate libraries, frameworks and previously written modules. Without a clear position you may be shipping code you do not own and cannot fully license.
The patent-specific point
If an agency engineer devised something inventive, that person is an inventor as a matter of fact. Naming your CTO instead is wrong, and Indian assignments must be in writing and recorded.
So the practical steps are: identify inventors from the technical record rather than the org chart, get a written assignment from each, and record it. Do this at filing, not when someone asks in diligence.
What to actually do
- Require a present assignment of inventions and copyright in every agency contract.
- Ask what background IP and third-party components are in the deliverables.
- Identify inventors from the technical record, not the org chart.
- Get and record written assignments at filing.
Sources & further reading
- The Patents Act, 1970 (consolidated to 1 August 2024) — Official IP India text
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The consultant who still owned it
Who owns the invention, and who should have been named?
Assignment
A transfer of ownership of a patent or an application from one person to another. In India it must be in writing, and it has to be recorded in the register to be eff…
Not sure whether this applies to your invention?
The honest answer usually needs someone to look at your actual disclosure, your timeline and the prior art. That is a conversation, not an article.
Educational guidance, not legal advice. This material is published by Ragulika IP for general education and information. It is not legal advice, it does not create a professional-client relationship, and it is not a substitute for advice on your own facts. Patentability, infringement, prosecution strategy and every other IP outcome turn on the specific facts and on the law and Patent Office practice as they stand at the time you act. Please take professional advice before making a decision, and read the underlying provision or judgment before relying on any point stated here.
Last reviewed by Ragulika IP on 2026-08-23. Indian patent law and Patent Office practice change; check the position before you rely on it.