Legal Definitions - Assignment Division

The Assignment Division is a specific department within the United States Patent and Trademark Office (USPTO). Its primary role is to officially record legal documents that transfer ownership or otherwise affect the legal rights associated with patent applications, granted patents, trademark applications, and registered trademarks.

Think of it as the official registry for who owns what in the world of patents and trademarks. When ownership changes hands, or when other significant legal interests are created or modified, the Assignment Division ensures these changes are publicly documented and legally recognized.

Here are a few examples to illustrate its function:

• Example 1: Company Acquisition of a Patent
  Imagine a small biotech startup develops a groundbreaking new medical device and successfully obtains a patent for its invention. A larger, established medical technology company decides to acquire the startup specifically for this innovative patent. The legal document transferring the ownership of this patent from the startup to the larger company must be filed with and recorded by the Assignment Division. This ensures that the public record at the USPTO clearly shows the new owner of the patent.

• Example 2: Transfer of a Trademark Due to a Merger
  Consider two popular snack food companies that decide to merge. One of the companies owns a highly recognizable trademark for its best-selling chip brand. As part of the merger agreement, the ownership of this registered trademark, along with all other assets, is transferred to the newly formed merged entity. The legal paperwork documenting this transfer of the trademark's title would be submitted to the Assignment Division for official recording, updating the USPTO's records to reflect the new owner.

• Example 3: Using a Patent Application as Loan Collateral
  A burgeoning software company is developing a revolutionary new algorithm and has a patent application pending with the USPTO. To secure a significant business loan for further development, the company agrees to use its rights in the pending patent application as collateral. The bank providing the loan would require a document outlining this security interest to be filed with the Assignment Division. This recording ensures that the bank's claim against the patent application is publicly acknowledged, affecting the title by placing a lien on it until the loan is repaid.