47-25-1201 - Definitions.
47-25-1201. Definitions.
As used in this part, unless the context otherwise requires:
(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 includes any person, firm, corporation, or other entity that is solicited by, inquires about or seeks the services of, or enters into a contract for invention development services with, an invention developer, except:
(A) Any department or agency of the federal, state, or local government;
(B) Any charitable, scientific, educational, religious, or other organization qualified under § 501(c)(3) or described in § 170(b)(1)(a) of the Internal Revenue Code of 1954, as amended; and
(C) Any person, firm, corporation, or other entity regularly engaged in a trade, business, or profession, which has either a net worth of one hundred thousand dollars ($100,000) or more or gross receipts from any source of fifty thousand dollars ($50,000) or more during the calendar year in which any contract for invention development services is signed;
(3) Invention means:
(A) An invention;
(B) An idea;
(C) A concept; or
(D) Any combination thereof;
(4) Invention developer means any person, firm, corporation, or association, and the agents, employees, or representatives of such person, firm, corporation, or association that develops or promotes or offers to develop or promote an invention, except:
(A) Any department or agency of the federal, state, or local government;
(B) Any charitable, scientific, educational, religious, or other organization qualified under § 501(c)(3) or described in § 170(b)(1)(a) of the Internal Revenue Code of 1954, as amended;
(C) Any person, firm, corporation, association, or other entity whose gross receipts from contracts for invention development services, as defined in subdivision (5), do not exceed ten percent (10%) of its gross receipts from all sources during the fiscal year preceding the year in which any contract for invention development services is signed; or
(D) Any person, firm, corporation, association, or other entity that does not charge a fee for invention development services. For the purposes of this subdivision, fee includes any payment made by the customer to such entity, including reimbursements for expenditures made or costs incurred by such entity, but does not include any payment made from a portion of the income received by a customer by virtue of invention development services performed by such entity; and
(5) Invention development services includes acts required or promised to be performed, or actually performed, or both, by an invention developer for a customer.
[Acts 1977, ch. 436, § 2; T.C.A., § 47-20-101.]