One of the most frequent questions we get from business owners is:
“What happens to my trademarks, copyrights, or patents if I sell my business or something happens to me?”
The answer depends on one critical factor:
Who owns the intellectual property?
If the IP Is Owned by the Business
If your trademarks, patents, or copyrights are owned by the business—whether that’s an LLC or a corporation—then the intellectual property typically transfers automatically when the business is sold.
In this case, the IP is considered a business asset, just like your website, equipment, or customer list. So when someone buys the business, they also acquire the rights to all IP held in the business’s name.
If the business passes to a new owner due to death or succession planning, the IP goes with it, as part of the business entity.
If the IP Is Personally Owned
Things work differently if you—as an individual—own the IP.
This happens often with sole-member LLCs, where the business owner files for trademarks, copyrights, or patents in their personal name instead of the company’s. In this case, there’s usually an implied license to the LLC allowing it to use the IP, but the legal ownership still rests with the individual.
So what happens if the business is sold?
The intellectual property does not automatically transfer.
Instead, the new buyer would need to obtain a formal assignment agreement from the individual who owns the IP. Without that assignment, they’re purchasing the business—but not the brand, content, or protected inventions that may define it.
If the Owner Passes Away
Ownership of intellectual property doesn’t vanish when someone dies—it becomes part of their estate.
If the IP is owned by the business, it passes along with the business, per whatever ownership or succession plans are in place.
If the IP is owned personally, it becomes part of the individual’s estate. This applies to trademarks, copyrights, and patents alike. The estate executor will determine what happens next—whether that means assigning it to a surviving business partner, selling it, or retaining it within the family.
Why It Matters
Whether you’re planning to sell, restructure, or prepare for succession, it’s crucial to know who holds the legal rights to your intellectual property. A mismatch between the business entity and IP ownership can create costly complications down the road.
If you're unsure how your IP is currently held—or want help assigning it properly—we’re here to help.