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We developed a device for improving the results on a piece of equipment we designed and built for another corporation. After delivery of the entire piece of equipment, they went and patented our idea but they had nothing to do with coming up with the idea nor developing it into a working design.

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NO

That is not proper at all. In the U.S.someone who is not a true inventor needed to sign the paperwork declaring that they were a true inventor for the filing. The form says fraudulent signing is punishable by fine or imprisonment.

One approach would be try to get them to assign the patent to your company along with a change in inventor to the actual inventor or inventors. Another would be to file your own patent application and as part of that process initiate a derivation proceeding against them.

If you did get the patent owned by your company, as it should be, they would have the right to use the device they bought from you and depending on your agreements might have the right to build or have built other units. As Eric points out it is conceivable that your agreement with them requires you to assign your patent rights to them either exclusively or non-exclusively. That doesn't change the fact that the true inventors need to be involved in the filing and are the default owners.

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    Depending on the contract terms, the second company my own the rights to the invention. That doesn’t excuse filing with false inventors.
    – Eric S
    Commented Jul 29, 2020 at 2:53

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