Free Option Agreement for Purchase of Patent Rights

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This Option Agreement for Purchase of Patent Rights is between the owner of rights in a patent and a company who desires to option the rights to purchase the patent. During the option period the company will develop and commercialize the patent in order to evaluate its potential. If this evaluation is successful, the company will then exercise its option and purchase the patent rights from the original owner. This option sets forth the details of the arrangement including the negotiation of an exclusive license, a non-refundable option fee and extension of the option if necessary. A written Option Agreement for Purchase of Patent Rights will prove invaluable in the event of disagreements, misunderstandings or litigation surrounding the option of the patent rights. This Option Agreement for Purchase of Patent Rights includes the following provisions: Parties: Name of the owner of the patent and the company who desires to purchase the patent rights; Recitals: Sets forth that company will develop the patent and evaluate its marketing potential before negotiating a license; Grant of Option: Sets forth the conditions under which patent owner grants company the option to purchase the patent including termination provisions; Option Fee: Sets forth the fee the company will pay to the patent owner on the effective date of this agreement; Extension of Option: Company will have the option to extend this agreement for an additional six months upon written notice; Assignment: This agreement cannot be assigned by the company without prior written consent of the patent owner; Signatures: This agreement must be signed by the patent owner and the company. Protect your rights and your property by purchasing this attorney-prepared form. This attorney-prepared package includes: General Information Instructions and Checklist Option Agreement for Purchase of Patent Rights State Law Compliance: This form complies with the laws of all states