Which statement best describes the difference between assignment and license in IP transactions?

Which statement best describes the difference between assignment and license in IP transactions?

• A. Assignment requires filings; license never requires filings
• B. Assignment is always permanent; license is temporary
• C. Assignment transfers ownership; license grants rights without transfer
• D. Assignment is only for software; license is for trademarks

Answer: (C)

The key distinction is ownership versus permission. An assignment transfers ownership of the IP rights from one party to another, so the new owner holds the title and can decide how the IP is used, licensed, or sold. The original owner loses those rights (subject to any surviving contractual obligations). A license, on the other hand, is a grant of permission by the IP owner to someone else to use the IP under defined terms, while the owner retains title. Licenses can be exclusive or non-exclusive, can cover specific fields or territories, run for a term or be perpetual, and may include royalties or sublicensing rights. That’s why this statement is the best: it captures the fundamental difference—ownership transfers in an assignment, whereas a license merely conveys rights to use without transferring ownership. The other choices misstate or overgeneralize aspects: assignments aren’t limited to software, licenses aren’t restricted to trademarks, and the permanence of assignments or licenses depends on the contract terms—not a universal rule.

The key distinction is ownership versus permission. An assignment transfers ownership of the IP rights from one party to another, so the new owner holds the title and can decide how the IP is used, licensed, or sold. The original owner loses those rights (subject to any surviving contractual obligations). A license, on the other hand, is a grant of permission by the IP owner to someone else to use the IP under defined terms, while the owner retains title. Licenses can be exclusive or non-exclusive, can cover specific fields or territories, run for a term or be perpetual, and may include royalties or sublicensing rights.

That’s why this statement is the best: it captures the fundamental difference—ownership transfers in an assignment, whereas a license merely conveys rights to use without transferring ownership. The other choices misstate or overgeneralize aspects: assignments aren’t limited to software, licenses aren’t restricted to trademarks, and the permanence of assignments or licenses depends on the contract terms—not a universal rule.