How to File a Patent in Your Own Name vs Company Name
Last revised:
April 19, 2026
Patents can be filed in an individual's name or in a company's name — and the choice has implications for ownership, liability, tax treatment, and investor readiness. This tutorial covers the considerations and how to make the switch if needed.
Filing as an Individual
The inventor files the application and is both the inventor and the applicant/owner. This is simpler and cheaper at filing — no company formation needed. The inventor personally owns the patent.
Drawbacks: Personal liability exposure (if the patent is enforced or challenged, the individual is the party at risk). Investors cannot invest in an individual's patent — they invest in companies. Licensing income is personal income (taxed at personal rates, without access to corporate IP tax benefits like patent box regimes). Chain-of-title complications if the inventor later transfers the patent to a company.
Filing as a Company
The inventor assigns the invention to a company entity, which files the application as the applicant. The inventor is listed as the inventor; the company is the owner.
Advantages: Limited liability, access to corporate tax treatment (patent box, R&D credits), investor-ready structure, clean chain of title for future transactions.
Requirement: A written assignment from the inventor to the company must be executed and recorded at the patent office. Without this, the inventor personally owns the patent regardless of which entity filed it.
When to Switch
If you filed as an individual and later form a company, execute a patent assignment agreement and record it at every patent office where the application is filed. Do this before any licensing negotiation, investor due diligence, or enforcement action — an unrecorded assignment creates chain-of-title defects.
Sources
- USPTO — Patent Ownership and Assignment — Official guidance on filing patents as individuals vs. entities
- MPEP § 301 — Ownership and Assignment — Rules governing patent ownership, small entity status, and assignments
- 35 U.S.C. § 261 — Ownership; Assignment — Statutory framework for patent ownership and transfer
This article is part of the iInvent Encyclopedia — the world's most comprehensive knowledge base for inventors. It is intended for educational purposes and does not constitute legal advice. For guidance specific to your situation, consult a qualified patent attorney.
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