

Whats the standard practice when it comes to future patent profile? - rouzbeh31

Hello,&#60;p&#62;I am joining a startup and has already worked out an equity agreement. However, I dont know the standard practice for future patents that I would be involved (if any). I mean if in the future the patent profile is up for sale, do I only get a portion as specified by equity (say only 10%) or can I work out a clause that would result in more shares for me in case of patent profile sale, say, 50% of it. whats the usual practice?&#60;p&#62;I am not even sure if the question is right!&#60;p&#62;Thanks in advance.&#60;p&#62;ps. I am dealing with suites here hence the sense of paranoia
======
wmf
Usually you get nothing. Patent licensing isn't treated differently from other
revenue in terms of sharing with employees.

~~~
rouzbeh31
thx. I thought so, but that seems unfair. Even if a company go down or the
people who'd left it must get something if they were involved in developing
patents. In case of startups that may not seem significant but I wonder who
got the money when Nortel sold its patent profile?!

~~~
wmf
If you want a significant stake in the company's success, either become an
executive or start your own company. The fundamental tradeoff in work-for-hire
is that employees are exposed to less financial risk and receive less share of
profits. (Would you be willing to pay the $10,000 fees on patents that you
write?)

