Drafting IP Assignment Clauses In India: Copyright, Patents And Contractor Agreements

Introduction

Intellectual property (IP) assignment clauses form an important part of employment agreements, consultancy arrangements, technology development contracts and startup agreements in India. These provisions determine who owns, controls, commercialises, licenses and protects intellectual property created during an employment or contractual engagement.

However, Indian law does not prescribe a uniform ownership rule for all categories of intellectual property. Under Section 17(c) of the Copyright Act, 1957, an employer is generally the first owner of copyright in a work created by an employee in the course of employment under a contract of service or apprenticeship, unless there is an agreement to the contrary. Patent rights, however, are governed by a different framework under the Patents Act, 1970, which recognises the inventor and an assignee of the inventor’s right to apply for a patent. There is no equivalent general provision automatically vesting employee inventions in