Patent

A legal right granting its owner exclusive use of an invention for a limited period in the territories where it is granted.

Example

A medical device company holding a granted patent on its core mechanism.

Important

Check ownership, territorial coverage and whether it is granted or only pending.

Related terms

  • Trademark — A legally protected sign, such as a name or logo, identifying the source of goods or services.
  • Intellectual property assignment — A written agreement transferring ownership of intellectual property, such as code or designs, from its creator to a company.

Lessons that explain it

  • The company's name and inventions may already belong to someone else — Legal IP diligence checks registered rights such as trademarks and patents, and looks for claims by founders' former employers or universities over work the company relies on. (10 min)

All 578 terms in the Investing glossary