Operating companies in the oil and gas industry often contract with oilfield service companies for equipment and operations to explore, extract, and deliver oil and gas from the ground, to the refinery, and ultimately to the consumer. This dynamic creates a number of potential pitfalls for operating companies and oilfield service companies looking to maintain a stake in any patent rights generated from the relationship. Just like operating companies, oilfield service companies may spend as much as a $1 billion a year on research and development. As the price of oil remains low, all parties must innovate to become more productive and cost efficient. To preserve the financial investment and maintain a competitive edge, parties protect these innovations through patent rights. Who owns these patent rights in these relationships, however, sometimes becomes an issue. In this article, Finnegan attorneys Anthony D. Del Monaco and Benjamin A. Saidman examine the potential pitfalls and recommend actions both groups of companies can take to avoid any issues in the future.
Previously published in Oil & Gas Monitor
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