Legal Definitions - DDP

The acronym DDP has two distinct meanings in legal and commercial contexts:

1. DDP: DELIVERED DUTY PAID

DELIVERED DUTY PAID is an international shipping term (an Incoterm) that signifies the seller's maximum responsibility in a transaction. When goods are shipped DDP, the seller bears all risks and costs associated with delivering the goods to the buyer's specified destination. This includes not only the cost of transport and insurance but also all export and import duties, taxes, and customs clearance fees. The buyer's only responsibility is to unload the goods once they arrive.

• Example 1: E-commerce Purchase

  An online consumer in the United States orders a custom-made piece of furniture from a workshop in Italy, and the seller offers DDP shipping. The price paid by the consumer includes all costs up to their doorstep.

  How it illustrates DDP: The Italian furniture maker is responsible for packaging, shipping, insuring the furniture, handling all Italian export customs, paying any U.S. import duties and taxes, and arranging for final delivery to the consumer's home. The U.S. consumer receives the furniture without any unexpected charges or customs paperwork.

• Example 2: Industrial Equipment Sale

  A Japanese manufacturer sells a specialized robotic assembly line to an automotive factory in Mexico. The contract specifies DDP delivery to the Mexican factory's production floor.

  How it illustrates DDP: The Japanese manufacturer must manage and pay for all aspects of the shipment: freight, insurance, export customs in Japan, import duties and taxes in Mexico, and even the local transportation and unloading at the Mexican factory. The Mexican factory simply receives the operational equipment, free from any logistical or financial burdens related to its import.

• Example 3: Luxury Goods Import

  A high-end fashion boutique in London purchases a new collection of designer handbags from a supplier in France under DDP terms.

  How it illustrates DDP: The French supplier is responsible for ensuring the handbags are shipped, insured, cleared through both French export and UK import customs, and that all applicable UK VAT (Value Added Tax) and duties are paid. The London boutique receives the goods ready for sale, without needing to engage with customs authorities or pay additional taxes upon arrival.

2. DDP: DISCLOSURE DOCUMENT PROGRAM

The DISCLOSURE DOCUMENT PROGRAM was a former program offered by the United States Patent and Trademark Office (USPTO). It allowed inventors to submit a written description and drawings of their invention to the USPTO, which would then be held in confidence for a period of two years. The primary purpose was to establish a documented date of invention, which could be useful evidence in a patent dispute to prove when an invention was conceived. This program has since been replaced by the "provisional application for patent," which offers similar benefits but with stronger legal standing.

• Example 1: Independent Inventor's Idea

  An individual inventor develops a novel mechanism for a self-adjusting bicycle seat. Before investing in a full patent application, they want to secure an official date for their invention.

  How it illustrates DDP: The inventor would have prepared a detailed description and diagrams of their bicycle seat mechanism and submitted it to the USPTO under the Disclosure Document Program. This created an official, dated record of their invention, which could later serve as evidence of the date of conception if another party claimed to have invented it first.

• Example 2: Startup's Early Technology

  A small tech startup creates a groundbreaking software algorithm for optimizing renewable energy grids. They are still in the early stages of development and fundraising but want to protect their intellectual property.

  How it illustrates DDP: The startup's lead engineer would have submitted a comprehensive disclosure document detailing the algorithm to the USPTO. This established a formal invention date, providing a documented record that could be referenced if they needed to prove prior invention while they worked towards filing a more comprehensive patent application.

• Example 3: Academic Research Discovery

  A university research team discovers a new chemical compound with potential medical applications. They plan to publish their findings in a scientific journal but also want to ensure their invention date is officially recorded.

  How it illustrates DDP: Before publishing, the research team would have filed a disclosure document with the USPTO, outlining the compound's structure, synthesis, and properties. This provided a dated, official record of their discovery, which could be crucial in establishing their priority as inventors if a patent dispute arose after their research became public.