Assignment of know-how

An assignment of know-how is a transfer of practical technical or business knowledge, such as methods, techniques, recipes or operating experience, usually in a business sale or technology deal. Because know-how is not a registered right and is often held in people's heads, the transfer is achieved through contract terms, documentation, training and confidentiality obligations rather than a registration.

How BC law treats it

Know-how is not protected by a statute in BC. It is protected through contract and the equitable action for breach of confidence, provided the information is kept confidential. Restrictive covenants given by a seller of a business are more readily enforced than those given by employees, but must still be reasonable.

What it means for your business

A buyer should require the seller to document the know-how, provide transition support and keep it confidential after closing.

Risks and common mistakes

If key know-how sits with employees who are not bound by confidentiality obligations, it may leave with them after the sale.

For the full explanation, see our entry on Assignment of intellectual property.

General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.