Let?s say you have an entrepreneur who has a patented/able concept but
no capital. However the realization of the idea requires capital
investment. Subsequently the entrepreneur has a few interested parties
who would like to invest in the particular idea/product, but not for a
stake in the company of the entrepreneur. These investors would like
to have part ownership of the patent, like a stock lets say.

Assuming that the entrepreneur does not want to seek funding elsewhere
as perhaps he trusts the integrity of these investors as silent
partners or even as friends etc. Therefore without considering other
forms of investment how and what should the entrepreneur do to realize
this agenda. Also, are there any other legal considerations etc.

Any help greatly appreciated!

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Clarification of Question by crutchedfriar-ga on 28 Mar 2005 05:28 PST

Also the entreprenuer is based in the UK (subsequently the patent laws
of the UK apply, not sure if this makes a difference!).

I'm no expert, but isn't a patent issued just to one person or a
company, and that's it?  If the patentholder want's to include others,
that would be separate, civil contract agreeing to allow them to share
in any proceeds from the patent, either for the price of providing the
funding, or for the commitment to take well-specified action towards
production and sale of the product/idea.

There is no better way to test  - and often ruin -  a good friendship
than to get involved in an informal business transaction.  Everything
should be documented and clarified up front, while the good will is
there.  After misunderstandings arise  - and they will, without a
document -  it can get very messy.
The entrepreneur should talk to a lawyer.  As you know from the
disclaimer below, this is no professional or legal advice.

You're making some wrong assumptions.  First you're worried about the
integrity of investors as friends.  First of all, never go into a
business deal with friends.  Second of all, it's you who has to have
the integrity...they're giving you the money after all.