Someone recently asked whether a minor, a person under eighteen years of age, can register a trademark or copyright.  Many answered that there are no federal age restrictions, but there might be restrictions in your state.  Some answered that the minor should incorporate and went on to explain how to go about becoming a shareholder in their state.  All of this is good advice, but we thought we would explain the why in addition to the how.

Can a minor register a trademark or copyright?

The answer is yes, a minor can own a trademark or copyright. There is no age restriction for registering a trademark or copyright.

However, a minor may not be able to enforce a trademark or copyright.  In federal court, a minor needs a guardian to sue for infringement. In most state courts, a minor would also need a guardian to be in charge of the business proceedings involving a trademark or copyright owned by a minor.

When does a minor benefit from incorporating and becoming a shareholder?

Depending on the state, incorporation comes with certain costs.  In California, the tax liability alone is a minimum of $800 annually. As such, we would not recommend just any minor with a copyright or trademark to incorporate.

Having said that, there are instances when incorporating would be beneficial to a minor with intellectual property.  Such instances would include minors who are in business and therefore have business income, earnings, and sales.  If a minor needs to sign contracts in relation to their intellectual property, then it may be beneficial to incorporate so as to protect the minor’s interests.

How does a minor form a corporation in the state of California?

In California, a minor cannot be a Director or officer for a corporation, but a minor of any age can own stocks.  This means a minor can be a majority stock holder in a corporation.

While the age restriction does mean the minor would need another trusted adult to act as an officer for the corporation, it also means that the minor can sue any of the officers as a shareholder.  This is an important protection for the minor in the event an officer or guardian acting as an officer, misuses the corporate funds or intellectual property.

 

Do you have more questions regarding minors and intellectual property? Contact an attorney today!