Assignment of rights
Legal transfer of rights (IP, contractual, etc.) from one party to another.
Definition
Assignment of rights is the legal transfer of rights (intellectual property, contractual rights, receivables) from one party to another. Common in IP transfers, factoring, and corporate restructurings.
Context
Critical for LLC IP ownership: founder pre-LLC IP needs explicit assignment to the LLC.
Example
A founder forming an LLC assigns their prior personally-owned IP (domain name, trademark, software) to the LLC via written IP assignment agreement.
Common pitfalls
- Without assignment, founder may personally retain IP they assumed was the LLC.
- Some IP types (patents) require recordation at USPTO.