The Procurement Glossary » Intellectual Property (IP) Rights
Intellectual Property (IP) Rights
Contracts & Legal
Also known as: IP Rights
Definition
Legal rights over creations such as designs, software, patents and trademarks, and who owns them under a contract.
Explanation
IP clauses decide who owns work product, background IP and improvements. They matter most in services, development and manufacturing, where ambiguity can be costly. Buyers often require ownership or a broad licence to what they pay for.
Example
The development contract assigns all bespoke code IP to the buyer while the supplier keeps its pre-existing tools.
Related terms
- Indemnity — A contractual promise by one party to cover specified losses or liabilities suffered by the other.
- Master Service Agreement (MSA) — An overarching contract setting the general terms governing a relationship, under which specific work is commissioned via SOWs or orders.
- Confidentiality — The obligation to protect and not disclose sensitive information shared under a business relationship.
- Contract — A legally binding agreement between buyer and supplier setting out what will be supplied, at what price and on what terms.
Frequently Asked Questions
What is Intellectual Property (IP) Rights?
Legal rights over creations such as designs, software, patents and trademarks, and who owns them under a contract. IP clauses decide who owns work product, background IP and improvements. They matter most in services, development and manufacturing, where ambiguity can be costly. Buyers often require ownership or a broad licence to what they pay for.
Can you give an example of Intellectual Property (IP) Rights?
The development contract assigns all bespoke code IP to the buyer while the supplier keeps its pre-existing tools.
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