Intellectual property and the sale of a business

[multiplex77]

Hi,

I have been running my own IT business (a sole proprietorship) for the past 1.5 years. During this time I created some intellectual property (a computer software). Circumstances now require me to transfer the ownership of my business (i.e. the sole proprietorship) to another entity. (I'm taking up employment in a company that prohibits me from owning another businesses.)

Q1. Does transferring ownership of my business necessarily constitute transferring ownership of the IP rights over that software?

Q2. Can I still retain intellectual property rights over the software?

Q3. If I still retain intellectual property rights over the software, will I be entitled to collect royalties for each sale of that software?

Q4. If my new company only prohibits "outside employment" and "ownership of companies", would they be able to fault me for collecting royalties on IP that I previously created and still own?

Thanks in advance for the advice.

[LimeLegal]

All of your concerns can be negotiated in your favour ie there is no set in stone rule that means transfer is automatic. However you do need to deal with this by an agreement and not just let it slide into the new business model.

Happy to advise further if you email ( with spaces out) to info @limeone.co.uk

[businessdata]

Yes it all depends on what you agree with the buyer of the business.

Of course if you seek royalties for intellectual property then do not be surprised if the buyer seeks a discount for the business. Another important point is can you afford to defend your intellectual property rights? It would be very easy for the new owners to change it a bit and claim it as theirs...

I would suggest that you sell the business with all the intellectual property for a higher figure and get on with your new job.

[multiplex77]

Hi Limelegal and Businessdata,

Thanks for your good advice. I've gotten on with my new job but I'm still holding on to my IP because no one has made an offer yet. THanks for the help.