As used in this chapter, unless the context otherwise requires:

Terms Used In North Dakota Code 9-14-01

  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Individual: means a human being. See North Dakota Code 1-01-49
  • Organization: includes a foreign or domestic association, business trust, corporation, enterprise, estate, joint venture, limited liability company, limited liability partnership, limited partnership, partnership, trust, or any legal or commercial entity. See North Dakota Code 1-01-49
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Partnership: includes a limited liability partnership registered under chapter 45-22. See North Dakota Code 1-01-49
  • Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
  • Process: means a writ or summons issued in the course of judicial proceedings. See North Dakota Code 1-01-49
  • State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See North Dakota Code 1-01-49
  • United States: includes the District of Columbia and the territories. See North Dakota Code 1-01-49
  • year: means twelve consecutive months. See North Dakota Code 1-01-33

1.    “Contract for invention development services” includes a contract by which an invention developer undertakes to develop or promote an invention for a customer.

2.    “Customer” means any individual who is solicited by, inquires about, seeks the services of, or enters into a contract with an invention developer for invention development services.

3. “Invention” includes a process, machine, manufacture, composition of matter, improvement upon the foregoing, or a concept.

4.    “Invention developer” means any person, and the agents, employees, or representatives of the person, that develops or promotes or offers to develop or promote an invention of a customer in order that the customer’s invention may be patented, licensed, or sold for manufacture or manufactured in large quantities, except the term does not include:

a.    A partnership, corporation, or limited liability company when all of its partners, stockholders, or members are licensed by a state or the United States to render legal advice concerning patents and trademarks, or a person so licensed.

b.    A department or agency of federal, state, or local government.

c.    A charitable, scientific, educational, religious, or other organization described in section 170(b)(1)(A) of the Internal Revenue Code of 1954.

d.    An entity that does not charge a fee for invention development services.

e.    An entity whose gross receipts from contracts for invention development services do not exceed ten percent of its gross receipts from all sources during the fiscal year preceding the year in which any contract for invention development services is signed.

f.    A partnership, corporation, or limited liability company that accepts technology from institutions of higher education and other state and federal research institutions for evaluation and the providing of marketing services.

For the purposes of this subsection, “fee” includes any payment made by the customer to the entity, including reimbursements for expenditures made or costs incurred by such entity, but does not include a payment made from a portion of the income received by a customer by virtue of invention development services performed by the entity.

5.    “Invention development services” includes acts required or promised to be performed, or actually performed, by an invention developer for a customer.