Often, for US companies hiring abroad, IP assignments for their international team members are a complicated process, even when companies work with an experienced global employment partner, such as a PEO. Transferring IP rights can involve multiple steps between numerous entities, and some of the steps can include contracts that the company may not be able to easily see or access, which increases the risk that the rights may not be transferred correctly.
As part of our commitment to security and compliance, we are launching Pilot Direct IP, which offers streamlined, two-step IP assignments for employees hired through Pilot. This feature significantly simplifies the IP transfer process. It is live for all customers and supported in over 160 countries.
What's the typical IP transfer process for US companies hiring through a global employment partner?
If your US-based company hires a new employee abroad using a global employment partner, there are typically three main steps: First, your employee must transfer their IP rights to the partner’s local legal entity in the employee’s location. For example, if the employee is in Brazil, then they'll first transfer their rights to the partner's Brazil entity. Second, the local entity (e.g., the Brazil entity) transfers the IP rights to the partner’s legal US entity. At this step, your company likely cannot access or edit the contract between the partner’s local entity and their US entity, increasing the risk that the IP rights may not be transferred correctly. Finally, the partner's US entity transfers the IP rights to your company:
What's the IP transfer process for US companies hiring through an HR or payroll platform?
If you hire through an HR or payroll platform that uses an employment partner, then there are typically four main steps, including transferring the IP rights from the partner's US entity to the platform's US entity. The more entities that the IP rights need to go through, the more chances that the IP isn’t transferred correctly at one of the steps, especially since there are more steps in the process where your company likely won't be able to access a contract. This increases the risk of your company not securely transferring the rights to the IP your employees are creating.
How does Pilot Direct IP differ from other IP transfer processes?
Pilot Direct IP significantly streamlines IP assignments. With Pilot Direct IP, the process only takes two steps: The employee transfers their IP rights to their local legal entity, and then the IP rights are transferred directly to your company, markedly simplifying the process and giving your company peace of mind that your IP rights will be securely yours.
How do I sign up for Pilot Direct IP?
This feature is live for everyone and is supported in over 160 countries. If you have any questions, please contact our support team at firstname.lastname@example.org. To learn more about Pilot's commitment to compliance and security, please visit our Compliance and Security pages.
Update posted on October 12, 2021: Pilot Direct IP is now supported in over 160 countries!
Want to learn more about Pilot? Request a demo with one of our experts.
Cover photo by Mikey Harris at Unsplash