You’d be surprised how many borrowers claim ownership of patents they’ve never formally received. We’ve encountered collateral lists filled with patents that were never assigned to the borrower by their inventors—even though the borrower funded the research, filed the applications, or believed the rights belonged to them.

But in patent law, belief isn’t ownership. Assignment is.

A patent must be legally transferred, in writing, from the named inventors to the company—or through a valid employment agreement that includes IP assignment clauses. Without this chain of title, the borrower doesn’t have the right to enforce the patent… or to pledge it as collateral.

Why Does This Happen?
Unassigned patents are more common than most collateral agents realize. Common causes include:

• Missing or unsigned assignment documents for older filings or early-stage inventions.

• Startups relying on handshake agreements or oral understandings with their inventors.

• Contractors and consultants who were not obligated to assign IP under their engagement terms.

• M&A transactions where IP wasn’t properly transferred to the acquiring entity.

These breakdowns create hidden defects in title that may only surface when enforcement—or foreclosure—becomes necessary.

How PatenTrack Helps
We trace assignment history back to the original inventors and identify missing links in ownership. Our platform helps collateral agents confirm that the borrower holds clear title—and alerts you when they don’t.