What happens to my IP rights when a startup is founded to commercialize it?

Question

If you are given, say, 10% equity in the IP of an invention, and suppose it gets patented and is the basis for a new company, do you own 10% of that company? How does the transfer of IP to the company work?

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Answers: 2 public & 0 private

Steven weinrieb
Patent Attorney

If the IP is, for example, the major asset of the new company, your 10% share may in fact be worth more because any owner of the patent rights has the right to license or assign the patent rights as he/she sees fit, independent of the other patent holders/owners provided, of course, that, as inventors, you did not assign the rights to the patent when, as is usual, the patent application was filed and before the patent issued.

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