Legal Q&A · Commercial Contracts

We developed the patent jointly with a partner. What may each of us do without the other's consent?

Law as at 12 September 2026

Short answer

Unless you have agreed otherwise, each co-owner may exploit the invention themselves, regardless of the size of their share. A licence to a third party may be granted only with the consent of all co-owners, in Slovakia as well as in Czechia. Because the statutory rules favour whoever has the manufacturing capacity, exploitation, licences, fees and exit from the project belong in the agreement between the partners.

Joint development often ends in a joint patent application. Both companies are then recorded as co-owners, and at first that feels fair. The problem shows up later, when one side starts manufacturing the invention at scale and the other, which has no production of its own, would like to license it to someone else. The statute has an answer for that situation, and it may not be the one you had in mind when signing.

Anyone may exploit, only everyone together may license

In Slovakia, the co-owners’ shares derive from the extent to which the right to the technical solution belongs to them, unless they agree otherwise (Section 20(1) of Act No. 435/2001 Z. z.). For exploitation itself, however, the size of the share is irrelevant:

Each co-owner of a patent has the right to exploit the invention that is the subject of the patent, unless the co-owners of the patent agree otherwise.

— Section 20(3) of Act No. 435/2001 Z. z. (unofficial English translation)

A co-owner with a ten per cent share may therefore manufacture to the same extent as one with ninety, and the Patents Act does not expressly require them to pay the others for that exploitation. Whether, and how, the rules on co-ownership in shares apply mutatis mutandis here is a question it is safer to resolve by contract than by litigation. Licensing is the opposite. Granting a third party the right to exploit the invention requires the consent of all co-owners, unless they agree otherwise (Section 20(4)). The side without production therefore needs, for a third-party licence, the consent of a partner who is often its competitor.

Where the patent is infringed, each co-owner may sue alone; a decision given on one co-owner’s action is, however, binding on the others as well (Section 20(3)). Other relations between co-owners are governed mutatis mutandis by the Civil Code rules on co-ownership in shares (Section 20(8)). An agreement dissolving the co-ownership and settling it must be in writing and takes effect against third persons only on entry in the register (Section 20(5)). A partial transfer of a patent is not permissible (Section 21(1)); a co-owner may nonetheless dispose of their co-ownership share, as Section 20(4) recognises by its reference to Sections 21 to 23. Whether the other co-owners have a pre-emption right on a transfer of a share under the rules on co-ownership in shares is not expressly regulated by Slovak law.

How Czech law deals with it

Czech Act No. 527/1990 Sb. rests on the same basis. Unless the co-owners agree otherwise, each of them may exploit the invention, and a licence agreement requires the consent of all (Sections 16(2) and (3)). It additionally regulates transfers expressly: transferring the whole patent requires the consent of all, and a co-owner may transfer their share to a third party only if no co-owner accepts it within one month of a written offer (Section 16(4)). In a Czech-Slovak project with patents in both countries, it is therefore necessary to allow for the rules on transferring a share differing between them.

What to agree in the cooperation agreement

The statutory rules are non-mandatory, so you may replace them by contract. A research and development agreement, or a separate co-owners’ agreement, should cover:

  • who may exploit the invention, in which field and in which territory,
  • whether, and what, a co-owner exploiting the invention alone pays the others,
  • how decisions on third-party licences are taken and whether one party may grant a licence alone,
  • who pays the maintenance fees and what happens to the share of a party that stops paying,
  • who conducts litigation over infringement and how the costs and proceeds are divided,
  • a pre-emption right or another mechanism for a party leaving the project.

These questions are far easier to resolve before the application is filed than at the point where one side is already manufacturing. We prepare an agreement allocating rights to results, licences and rules for co-ownership through research and development collaboration agreements. If you are working with a competitor, see also our article on joint development and the EU block exemption.

This answer provides general information on the law as at 12 September 2026. It does not constitute legal services or replace an assessment of an individual case. The details of your situation may differ. Book a consultation to discuss them.

More legal questions

All questions and answers
  1. How do we sell goods with retention of title so we do not lose them before payment? Agree it in writing in the sale agreement, framework agreement or properly incorporated standard terms. Without it, the buyer acquires ownership on delivery, leaving you only a claim if payment is not made. Retention keeps ownership with you until full payment, especially valuable in the buyer's bankruptcy. Risk of damage still passes on receipt regardless of retained title, so also require insurance and prohibit further disposal.
  2. Our commercial agency agreement has ended. Is the agent still entitled to commission on later transactions? Possibly. The Commercial Code grants commission after termination where a transaction results mainly from the agent's activity and takes place within a reasonable period, or where the third party's order arrived before termination. This rule can be varied or excluded by agreement. Alongside it, however, the indemnity under Section 669 is mandatory and cannot be waived in advance. The agent must assert that right within one year of termination.
  3. As a self-employed contractor, I signed a three-year non-compete. Is it enforceable? A three-year clause carries a serious risk of invalidity, but the outcome depends on the true nature of the cooperation, the restriction's scope and its proportionality. The two-year limit in Section 672a applies directly to commercial agency; courts have applied its criteria by analogy to other agreements in particular cases. It is therefore unsafe to claim that every three-year non-compete imposed on every self-employed contractor is automatically invalid. The securing penalty and whether the cooperation was actually dependent work must also be examined.
  4. The other party wants an ‘irrevocable’ power of attorney as security for the deal. Can we give one? You can grant it, but the ‘irrevocable’ element will not work: a principal cannot validly waive the right to revoke authority at any time. A power of attorney is therefore not a security instrument, and a structure allowing the other party to transfer your assets to itself on default also comes dangerously close to prohibited appropriation of collateral. Protect the transaction through escrow, a pledge or conditions in the agreement itself.

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Mgr. Patrik Tulinský, LL.M. Czech and Slovak attorney · SAK 300422 · ČAK 19654

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