How can I do business in Canada?
A business is an activity that you intend to carry on for profit which includes a profession, trade, manufacture, etc… The most common way to do business in Canada is either being a sole proprietorship, or through a partnership, joint venture or corporation.
What is a sole proprietorship?
If you intend to do business on your own account without involving other people in your business, except if you intend to hire employees, you are then considered carrying on business as a sole proprietorship. Said otherwise, it is a way to carry on business as an unincorporated business which entirely owned by a single person.
What is a partnership?
If you intend to do business in common with other individuals in the view of to make profits, then all of you are considered to be a in a partnership. A partnership is an association or relationship between two or more individuals, corporations, trusts, or partnerships that join together to carry on a trade or business. Each partner contributes money, labour, property, or skills to the partnership. In return, each partner is entitled to a share of the profits or losses in the business. The business profits (or losses) are usually divided among the partners based on the partnership agreement.
Are there any different types of partnership?
There are two types of partnerships: a general partnership and a limited partnership.
On the one hand, the most common form of partnership is a general partnership where each of the partners have unlimited liability for the losses, debts, and obligations of the partnership.
On the other hand, under the Limited Partnerships Act, a limited partnership shall consist of one or more persons who are general partners and one or more persons who are limited partners, and it is only recognized once a declaration is filed under the Limited Partnership Act. The liability of the limited partner under this partnership is therefore limited to the amount of money or other property contributed by the said partner. However, the general partners under this partnership are liable in the same manner of a general partnership.
What is a corporation?
A corporation is a separate and distinct legal entity that is created under legislation. In Canada, you can either create a federal or provincial type of corporation.
A corporation is considered as a legal person and can carry on business, buy and own property, etc… and it is owned by its shareholder through their shares. As a shareholder, you are not personally responsible for the corporation liabilities, which make it very attractive and the most commonly used structure for doing business.
Is it expensive to incorporate?
There are definitely some costs associated when incorporating and maintaining the corporation into good standing. Under corporate law, the shareholders are required to hold annual meeting to elect and ratify the decisions of the directors, appoint auditor, choose accountant, and document each meeting in the corporation minute books. As for being a director, they are responsible to appoint officers, to approve the corporation’s financial statements and present same to the shareholders at their meeting. Similarly, all directors meeting are documents by way of resolution in the corporation minute books.
Does a corporation need to have a minute book?
A minute book is an essential repository of all official record of events and the corporation history. The minute book is used to document all important decisions made by the shareholders and directors by way of resolutions. Maintaining the corporation minute book is imperative, since in the event you want to sell your company, the buyer’s lawyer will conduct its due diligence using the said minute book and the buyer’s accountant will assess the financial history based on the financial statements prepared and classified in the minute book.
Should I incorporate my company?
Some incorporate their business for different reasons, but mainly because of the perceived liability protection of corporations. Others want to incorporate because of the supposed tax advantages. That said, it must be noted that incorporation brings an additional expense, such as corporate tax return with the Canada Revenue Agency.
Remember, you can always incorporate your business later on by changing your sole proprietorship or partnership to an incorporated company.
What are the main reasons to incorporate?
There are many reasons to incorporate, including but not limited to, if you are:
- Trying to get financing;
- Seeking eligibility for some federal programs;
- Involved in potential liability that could damaging your personal finances;
- Looking to work for other businesses;
- Thinking to take advantage of the Capital Gains Exemption upon selling your business;
- Envisaging to take advantage of the Small Business Deduction;
- Making enough money that you need to manage your income;
- Looking to disseminate a favorable public perception, such as the prestige linked to adding the “Inc.” or “Ltd.” after your company’s name.
Am I personally protected if I incorporate my business?
The shareholders of a corporation are not responsible for its debts and liabilities, unless resulted by way of fraud.
What is a shareholder agreement, and a partnership agreement?
A shareholder/partnership agreement is an agreement entered between two or more of the shareholders/partners which structures their relationship dealing with matters relating to the sale and transfer of shares, corporate administration, voting rights, election of directors/officers, and many other aspects.
What is an industrial design?
An industrial design is the visual features of shape, configuration, pattern or ornament (or any combination of these features) applied to a finished article made by hand, tool or machine. For example, the shape of a table, bottle, decoration of a spoon may be industrial designs. An industrial design must have features that appeal to the eye. To be eligible for registration, your design must be original.
When can I file an industrial design application?
In Canada, there is no time limit for registering an industrial design as long as the design has never been published, made public, or offered for commercial sale or use anywhere in the world. If your design has been published, you must file for registration within 12 months of publication.
Why register an industrial design?
As the proprietor of a registered industrial design, you have the exclusive right in Canada to make, import for trade or business, rent or sell a product incorporating that design. You may also sell all or some of your rights to others, by assignment or, you can simply authorize others to use the design subject to stated conditions, by licence.
What is the difference between a distinguishing guise and an industrial design?
An industrial design protects the visual features of a product, including the product’s shape and configuration.
A distinguishing guise is a type of trade-mark that specifically protects the shape of wares or their containers, or the wrapping/packaging of wares. To be registered, this guise must have become known through use over a certain period of time in the marketplace such that when seen by a consumer, it is recognized as the owner’s “brand”.
In regards to the above, lengthy use/publication in the marketplace is not permissible for industrial design registration.
What cannot be protected by an industrial design?
The following cannot be protected:
- A method of construction
- An idea
- The materials used in the construction of an article
- The function of an article
Who can apply for an industrial design?
Only the owner, who has created the design, may apply for and obtain registration for an industrial design. However, if you’ve been hired under contract to develop a design for someone else, then that person is the proprietor and is the only one entitled to apply for registration. If you are an employee of a company and develop a design as part of your employment, then the employer is considered to be the proprietor. In that case only the employer may apply. If you work together with other people to create a design, you should file for registration as joint proprietors . In addition, if you have acquired ownership through a transfer of rights, you may apply.
Is there a time limit for filing an application for registration?
Unless there has been “publication” of the design where the design has been made public or offered for commercial sale or use anywhere in the world, in that case, you must file an application within twelve months of the publication date.
Do I have to put any notice on the articles?
Though notice is not required, it is may be helpful in the event of a court proceeding. The proper mark is a capital “D” in a circle and the name, or abbreviation, of the design’s proprietor on the article, its label or packaging.
I only want to register a design applied to part of an article. Is this possible?
A design can apply to the entirety or just a portion of it.
What happens if someone else applies for the same design that I apply for?
Should more than one applicant apply to register essentially the same design, the Canadian Intellectual Property Office will examine the applications on a first-come, first-served basis. The application with the earlier filing date (either the Canadian filing date, or the Convention priority date, if filed earlier in another country) will be registered.
For how long my Industrial Design is protected and what is “maintenance” and “maintenance fee”?
Registered industrial designs are valid for ten years provided that the required maintenance fee is paid. Design protection ends ten years after the registration date and cannot be extended. If the owner of an industrial design wishes to maintain the protection beyond five years, a fee must be submitted before the fifth anniversary of registration. If the fee is not received before expiry of the five-year period, an additional fee will also be required. If the design is not maintained within the five years plus six months, protection ends as of the next day.
What is copyright?
A copyright means the sole right to produce or reproduce a work or a substantial part of it in any form. It also includes the right to perform a work, or in the case of a lecture to deliver it, and the right to publish an unpublished work.
What is protected by copyright?
Copyright applies to original literary, dramatic, musical and artistic works. These general categories cover a range of creations. For example:
- Literary works: books, pamphlets, computer programs and other works consisting of text;
- Dramatic works: films, plays, screenplays, scripts, etc;
- Musical works: musical compositions with or without words;
- Artistic works: paintings, drawings, maps, photographs, sculptures, plans, etc.
Copyright also applies to works which fall under “other subject-matter” such as performer’s performance, sound recordings, and communication signals.
How do I obtain copyright in my work?
Copyright in a work exists automatically when an original work or other subject-matter is created provided the conditions set out in the Copyright Act have been met.
Do I need to register my copyright in order be protected?
Registration is not required for protection in Canada, however the Copyright Act provides that a certificate of registration of copyright is evidence that copyright exists and that the person registered is the owner of the copyright.
Copyright exists automatically when an original work or other-subject matter is created provided the conditions set out in the Copyright Act have been met.
What are the benefits of copyright registration?
The Copyright Act provides that a certificate of registration is evidence that the copyright exists and that the person registered is the owner of the copyright. Being on the Register of Copyrights may also assist those wishing to seek permission to use the work.
Do I need to mark my work with the copyright symbol?
Marking a work with the copyright symbol is not mandatory under Canadian copyright law, however some other countries do require it. The marking consists of the symbol ©, the name of the copyright owner and the year of first publication. Marking is useful since it serves as a general reminder to everyone that the work is protected by copyright. This symbol may be used even if the work is not registered.
Who owns the copyright in works created during the course of employment?
Works created during the course of employment are typically owned by the employer, except where there is an agreement to the contrary.
Can an application relate to more than one work?
Each application must be restricted to a single work. A work published in a series of books or parts, such as an encyclopaedia, can be made the subject of one application, however, the title must identify the work in its entirety.
Who should be named as the author on the application for registration in the case of a work that has been created by several authors?
When a work has been created by several authors, all their names should appear on the application.
Is the Canadian Intellectual Property Office responsible for policing my copyright work?
The responsibility for policing your copyright rests with you.
When applying to register a copyright, do I need to submit a copy of my work?
The Canadian Intellectual Property Office does not accept copies of a work, however Canadian works sometimes need to be deposited at Library and Archives Canada.
How long does copyrights last?
Generally, copyright lasts for the life of the author, the remainder of the calendar year in which the author dies, and for 50 years following the end of that calendar year. Therefore, protection will expire on December 31 of the 50th year after the author dies.
Some exceptions are as follow for other subject-matter:
- Performer’s performances: copyright lasts until the end of 50 years after the end of the calendar year in which the performance occurs. If it is fixed in a sound recording before the copyright expires, the copyright continues for 50 years after the end of the calendar year in which it is first fixed. If the sound recording is published before the copyright expires, the copyright continues until 50 years after the end of the calendar year in which the first publication occurs or 99 years after the end of the calendar year in which the performance occurs, whichever is earlier.
- Sound recordings: copyright lasts until 50 years after the end of the calendar year in which the first fixation of the sound recording occurs. If the sound recording is published before the copyright expires, the copyright continues for 50 years after the end of the calendar year in which the first publication occurs.
- Communication signals: copyright lasts for 50 years after the end of the calendar year in which the signal was broadcast.
- Works of Crown copyright: These government publications are created for (or published by) the Crown and copyright in these works lasts for the remainder of the calendar year in which the work was first published, and for 50 years after that.
- Joint authorship: In the case of a work that has more than one author, the term will last for the remainder of the calendar year in which the last author dies and for 50 years after that.
- Unknown author: In the case of a work where the identity of the author is unknown, copyright in the work shall exist for whichever is the earlier of (1) the remainder of the calendar year of the first publication of the work plus 50 years; or (2) the remainder of the calendar year of the making of the work plus 75 years.
- Posthumous works: These are literary, dramatic or musical works, or engravings protected by copyright that have not been published, performed or communicated to the public by telecommunication during the lifetime of the author, copyright shall subsist until publication, or performance in public or communication to the public by telecommunication, whichever may first happen, for the remainder of the calendar year of the publication or of the performance in public or communication to the public by telecommunication, as the case may be, and for a period of fifty years following the end of that calendar year.
What do the acronyms ISBN, ISMN, and ISSN mean?
Library and Archives Canada is responsible for assigning International Standard Book Numbers (ISBN), International Standard Music Numbers (ISMN) and International Standard Serial Numbers (ISSN).
What is a trade-mark?
A trade-mark is a word (or words), a design, or a combination of these, used to identify the goods or services of one person or organization and to distinguish these goods or services from those of others in the marketplace.
Trade-marks come to represent not only the actual goods or services, but also the reputation, of the producer. As such, trade-marks constitute valuable intellectual property.
Are there any different types/kinds of trade-marks?
There are three types of trade-marks:
- An ordinary mark consists in a word (or words), a design, or a combination of these, used to identify the goods or services of one person or organization and to distinguish these goods or services from those of others in the marketplace. For example, suppose that you started a courier business, which you chose to call Giddy-up. You could register these words as a trade-mark (assuming all legal requirements were met) in regard to the service that you offer.
- A certification mark is used by an individual or organization and licensed to others for the purpose of identifying goods or services that meet a defined standard, for example, the Woolmark design, owned by Woolmark Americas Ltd., for use on clothing and other goods.
- A distinguishing guise consists in the shaping of goods or their containers, or a mode of wrapping or packaging goods, which distinguishes them as being produced by a specific individual or firm. For example, if you manufactured butterfly-shaped candy, you could register the butterfly shape as a distinguishing guise.
If I registered my company name (trade name), am I protected?
A trade name is the name under which you conduct your business. A trade name can be registered under the Trade-marks Act if it is also used as a trade-mark, that is, if it is used to distinguish your goods or services from those of others.
Why register a trade-mark?
It is advisable to register a trade-mark as it provides direct evidence of ownership and exclusive rights across Canada. In a dispute, the registered owner does not have to prove ownership, since the onus is on the challenger. Use of an unregistered trade-mark, however, can lead to a lengthy and expensive legal dispute over who has the right to use it.
For how long is my trade-mark registration valid and can I renew my trade-mark registration?
A trade-mark registration is valid for 15 years. In order to renew your trade-mark, you must pay the prescribed renewal fee every 15 years. Failure to pay such a fee on time will result in the expungement of your trade-mark registration from the Register of Trade-marks.
What is the difference between a registered trade-mark and an unregistered trade-mark?
A registered trade-mark is a mark that has been entered in the Register of Trade-marks. The Register of Trade-marks is the record of all trade-marks that have been formally applied for and registered in Canada. The Office of the Registrar of Trade-marks is the body that administers the Register.
You are not required to register your trademark, since using a mark for a certain length of time can establish your ownership under common law.
What are the steps in obtaining a trade-mark registration?
Trade-mark registration usually involves many steps, including, a preliminary search of existing trade-marks, the filing of your application with the Office of the Registrar of Trade-marks, the examination of your application by the Office of the Registrar of Trade-marks, the publishing of the application in the Trade-marks Journal, a waiting period to allow for oppositions, if any, to your application, the allowance of your application (if there is no opposition or if any opposition raised is decided in your favour), and the registration of your trade-mark by the Office of the Registrar of Trade-marks.
Can I file for a word and a logo together on the same application?
If you intend to always use the combination of the word(s) and the logo together in association with your products and services, you can file a single application showing the trade-mark as the combination of word(s) and logo in a black and white drawing. However, if you intend to use the word(s) separately from the logo, you must also file two separate applications, one for the word(s) and one for the logo.
Who can register a trade-mark?
Companies, individuals, partnerships, trade unions, or lawful associations, provided that they comply with the requirements of the Trade-marks Act and Trade-marks Regulations.
What can and cannot be registered?
Each trade-mark is examined in accordance with the Trade-marks Act. The kinds of trade-marks that cannot be registered include the following:
- Names and surnames;
- Words that are clearly descriptive (i.e., that denote an inherent feature of the good or service), for example, sweet ice cream;
- Words that are misleading;
- Words that denote a geographical location commonly known to be the place of origin of such goods and services, for example, Atlantic cod; words or symbols that are too similar to an existing or registered trade-mark;
- Name of the goods and/or services in any language; and
- Words and symbols that are expressly prohibited under the Trade-marks Act (which include symbols, such as coats of arms, badges, and crests, of national and international organizations, and words that are considered immoral or offensive).
Can I obtain a trade-mark registration for a mark that sounds like another one?
Words, and/or designs that are similar to another trade-mark are not registrable since it is considered in confusion. Said otherwise, if your trade-mark is confusingly similar to a registered trade-mark or a pending trade-mark, it will be refused. Trade-mark examiners take into account various factors when determining whether trade-marks are confusing, including, whether the trade-marks look or sound alike and whether they suggest similar ideas, and whether the trade-marks are used to market similar goods or services.
Should the circled TM symbol be part of my trade-mark?
Canada’s Trade-marks Act does not include any marking requirements, however, the following symbols are commonly used in other countries by trade-mark owners to indicate registration:
- R (registered)
- TM (trade-mark)
- SM (service mark)
- MC (marque de commerce)
Can I register the name of my artistic work such as a cartoon character as a trade-mark?
The name of a cartoon character may be registrable under the provisions of the Trade-marks Act, even if by itself, it is automatically protected as an artistic work under the Copyright Act.
Why conduct a preliminary search?
A preliminary search helps determine whether your application has a chance for success and also may help you to avoid infringing others’ trade-marks. Moreover, it tells if your trade-mark can be registered.
What is a patent?
Patents are government grants giving inventors exclusive rights to their inventions and serve as a reward for ingenuity. They are granted for products or processes that are novel, useful, and inventive (new, workable, and ingenious).
Such protection applies in the country that issues the patent, where in Canada, this protection extends for 20 years from the date of filing, and given to the inventor who first files an application. It’s therefore wise to file as soon as possible after completing your invention because someone else may be on the same track.
Why obtain a patent?
You can use your patent to make a profit by selling it, licensing it, or using it as an asset to negotiate funding. Without a patent, you will only be able to protect your invention as a trade secret. Your secret will stop being a secret from the moment you publish or begin to sell your invention, and anyone will be able to exploit your invention. Moreover, even by maintaining a secret, if someone else independently makes the invention, that person may be able to obtain a patent and prevent you from exploiting your invention.
What can you patent?
Suppose you are the proud inventor of an electric door lock. How do you know if you can get a patent for it? There are three basic criteria for patentability:
- The invention must show novelty (be the first in the world);
- It must show utility (be functional and operative); and
- It must show inventive ingenuity and not be obvious to someone skilled in that area.
The invention can be a product (for example, a door lock), a composition (for example, a chemical composition used in lubricants for door locks), an apparatus (for example, a machine for making door locks), a process (for example, a method for making door locks), or an improvement on any of these.
How can I determine if my invention is patentable?
In order to be patentable, your invention must show the following:
- Novelty: To be granted a patent, you must be the original inventor of your door lock (or the assignee of the inventor), and the door lock must be the first of its kind in the world.
- Utility: A valid patent cannot be obtained for something that does not work, or that has no useful function. If your door lock doesn’t work, it will fail the utility test.
- Ingenuity: To be patentable, your invention must be a development or an improvement of an existing technology that would not have been obvious beforehand to a person of ordinary skill in the technology involved. Your door lock must make other designers in the field say, “Why didn’t I think of that”?
You may obtain a patent for an improvement to an existing invention, but keep in mind that the original patent may still be in force. If this is the case, manufacturing or marketing the product with your improvement would probably be an infringement. This situation is often resolved by agreement between the patentees to grant licences to each other.
Is a patent application mandatory?
You must apply for and receive a patent to have patent protection. Since patent laws are national, you must obtain patent protection in each country in which you want protection. Said otherwise, if you apply for and obtain a patent in Canada you are only protected in Canada.
How do I apply for a patent?
You can apply for your patent in Canada by submitting a patent application and paying the appropriate fee to the Canadian Intellectual Property Office.
What is included in a complete patent application?
For an application other than a PCT national phase application, a complete application includes: Formal petition; Abstract of the invention; Claim or claims to the invention; Any drawings mentioned in the description; Computer-readable copy of nucleotide sequence listings, if applicable; Appointment of a patent agent, an associate patent agent or representative, if required by the Act and the Rules. For a PCT national phase application, a complete application includes: Computer-readable copy of nucleotide sequence listings, if applicable; Appointment of a patent agent, an associate patent agent or representative, if required by the Act and the Rules.
What is the time frame to complete an application?
In all cases of incomplete applications, the Office will make every effort to inform the applicant of the reasons for non-compliance by means of a courtesy letter. The letter will specify a time limit prior to which the application can be completed without penalty. If your application is still incomplete after the first time limit, you will be notified by the Patent Office, and you will have to complete the application within a certain amount of time as well as pay a completion fee.
What is a divisional application?
Where an original patent application describes and claims more than one invention, the applicant must limit the claims to one invention only and any other invention described may be made the subject of a separate divisional application. Divisional applications will retain the filing date of the original applications and must be filed before the issue of a patent on the original application.
Can I claim convention priority?
Many countries, like Canada, belong to the Paris Convention for the Protection of Industrial Property, a treaty that allows you to invoke what is called “convention priority.” This means that your filing date in one member country will be recognized by all the others provided you file in those countries within a year of first filing. For example, if you filed in Canada on January 2, 2004, you could file up to one year later in most countries (January 2, 2005) and still be given the same filing rights as if you had filed there in 2004.
Under the Paris Convention, you can file an application abroad, and then in Canada. The Patent Office will recognize the earlier filing date as your convention date if you claim “convention priority” within 16 months of the Canadian filing date. The Canadian filing date must be within 12 months of the convention date. However, your application will be published 18 months after your convention date, not your filing date in Canada.
What is “The Patent Cooperation Treaty”?
Application for a foreign patent from within Canada is made possible through a treaty called the Patent Cooperation Treaty (PCT), administered by the World Intellectual Property Organization in Geneva. The PCT provides a standardized international filing procedure that is shared by our principal trading partners, including the United States, Japan, and most of the European community.
Under the PCT, you may file for a patent in as many as 142 member countries through a single application filed in Canada. This procedure is simpler than filing separate applications and can give you more time to raise capital, conduct market studies, etc.
When you file under the PCT, you will receive an international search report, which checks your international application against other applications and patents, as well as an initial opinion on the patentability of your invention. You will then have the option of corresponding with an examiner about the possibility of amending your application, and, ultimately, you will receive an international preliminary report on patentability. This is no guarantee of a patent; local patent offices in the countries to which you apply reserve the right to conduct their own examinations, but some accept the results of the international preliminary report on patentability. This means you will receive a fairly reliable indication of whether it’s worthwhile to file for multiple patents in foreign countries before fees are due.
What is a small entity?
In 1985, the Canadian Government introduced “small entity” provisions to encourage universities and small businesses to use the patent system by reducing certain fees by 50 percent. In order to pay fees at the small entity rate, an applicant/patentee must be eligible under the definition of small entity and submit a small entity declaration within a prescribed time period and must include a statement indicating that the applicant/patentee “believes that they are entitled to pay fees at the small entity level.”
Is there any fees related to Patent applications?
Three types of fees must be paid in order to obtain or maintain a patent or patent application: (1) filing fees; (2) examination fees; and (3) grant of patent fees. You can also consult the “Tariff of Fees,” Schedule II, of the Patent Rules.
A fourth type, maintenance fees, is required yearly to make sure your patent application or patent remains current. Such fees were introduced to encourage applicants and patent holders to re-evaluate the economic value of their applications and patents on a yearly basis. On the one hand, maintenance fees must be paid by specific deadline to keep a patent in force, otherwise, the patent lapses, but it can be revived within 12 months upon written request for reinstatement along with the payment of the maintenance fee and a late payment fee. On the other hand, owners of inactive patents may choose not to pay maintenance fees, letting the patents lapse and allowing others to freely use the technology described in those patents.
What is the difference between patents, trade-marks, copyrights, industrial designs, and integrated circuit topographies?
A patent cover new inventions (process, machine, manufacture, composition of matter), or any new and useful improvement of an existing invention.
A trade-mark is a word, symbol or design (or any combination of these) used to distinguish the wares or services of one person or organization from those of others in the marketplace.
A copyright provide protection for literary, artistic, dramatic or musical works (including computer programs), and three other subject matter known as: performance, sound recording and communication signal.
An industrial design is the visual features of shape, configuration, pattern or ornament (or any combination of these) applied to a finished manufactured article.
An integrated circuit topographies refer to the three-dimensional arrangement of the electronic circuits in integrated circuit products or layout designs.
What is trade secret?
You may be tempted to protect your creation by simply keeping its information secret and selling it. The information is then known as a trade secret. You will run into problems, however, if another person independently invents or discovers the subject matter of the trade secret — there is nothing to prevent that person from using it, applying for a patent, or publishing the information.
What is domain name?
A domain name is a way to identify and locate computers and resources connected to the World Wide Web.
What does CIPO, USPTO and WIPO stands for?
CIPO stands for the Canadian Intellectual Property Office, USPTO stands for the United Stated Patent and Trademark Office, and WIPO stands for the World Intellectual Organization.
What are intellectual property rights?
Intellectual property rights allow the owner of a patent, trademark, copyright, industrial design, and integrated circuit topography to benefit/protect their own work and reward human creativity and ingenuity.
Why does intellectual property rights need to be protected?
The main reason to protect and promote intellectual property rights is to stimulate economic growth, create jobs, develop the industry, and improve quality of life.
How can I market my Intellectual Property Rights?
Now that you’ve taken steps to protect your intellectual property rights, you’ll want to decide the best way to market it and turn a profit. You have a number of options including going into business yourself, licensing or selling it.
Setting up your own business allows you to retain full control of your intellectual property rights, but means you assume all the risks. With a licence, you grant one or more companies or individuals the right to manufacture and sell your intellectual property rights in exchange for royalties. The licence can apply nationally or to only a specific geographic region. Lastly, by selling your intellectual property rights, you give up your rights but you could gain an immediate lump sum of money without having to worry about whether the products or services are a commercial success.
What is a licence agreement?
A licence allows someone else to use your intellectual property right for certain purposes and under certain conditions. The owner still retains ownership.
To register a licence, a copy of the original agreement or a photocopy of it, along with the prescribed fee affected by the licence (named by title, or if available by registration number) must be filed with the Canadian Intellectual Property Office.
What is an assignment?
An assignment occurs when an intellectual property right is transferred, in part or all of their rights, to another party.
To register an assignment, a copy of the original agreement or a photocopy of it, along with the prescribed fee affected by the assignment (named by title, or if available by registration number) must be filed with the Canadian Intellectual Property Office.