diff --git a/libraries/entities/src/EntityItem.cpp b/libraries/entities/src/EntityItem.cpp
index 37164bd6f6..1e10ff2e48 100644
--- a/libraries/entities/src/EntityItem.cpp
+++ b/libraries/entities/src/EntityItem.cpp
@@ -27,6 +27,8 @@
 #include "EntityTree.h"
 #include "EntitySimulation.h"
 
+const quint64 SIMULATOR_CHANGE_LOCKOUT_PERIOD = (quint64)(0.2f * USECS_PER_SECOND);
+
 bool EntityItem::_sendPhysicsUpdates = true;
 
 EntityItem::EntityItem(const EntityItemID& entityItemID) :
@@ -66,7 +68,7 @@ EntityItem::EntityItem(const EntityItemID& entityItemID) :
     _userData(ENTITY_ITEM_DEFAULT_USER_DATA),
     _simulatorPriority(0),
     _simulatorID(ENTITY_ITEM_DEFAULT_SIMULATOR_ID),
-    _simulatorIDChangedTime(0),
+    _simulationOwnershipExpiry(0),
     _marketplaceID(ENTITY_ITEM_DEFAULT_MARKETPLACE_ID),
     _name(ENTITY_ITEM_DEFAULT_NAME),
     _href(""),
@@ -594,23 +596,24 @@ int EntityItem::readEntityDataFromBuffer(const unsigned char* data, int bytesLef
             // ownership has changed
             auto nodeList = DependencyManager::get<NodeList>();
             if (_simulatorID == nodeList->getSessionUUID()) {
-                // we think we're the owner but entityServer says otherwise we only relenquish 
-                // ownership if the incoming priority is greater than or equal to ours
-                if (priority >= _simulatorPriority) {
+                // we think we're the owner but entityServer says otherwise 
+                // we relenquish ownership if the incoming priority is greater than or equal to ours
+                // AND we don't have max priority
+                if (priority >= _simulatorPriority && _simulatorPriority != MAX_SIMULATOR_PRIORITY) {
                     // we're losing simulation ownership
                     _simulatorID = id;
                     _simulatorPriority = priority;
-                    _simulatorIDChangedTime = usecTimestampNow();
+                    _simulationOwnershipExpiry = usecTimestampNow() + SIMULATOR_CHANGE_LOCKOUT_PERIOD;
                 }
             } else {
                 _simulatorID = id;
                 _simulatorPriority = priority;
-                _simulatorIDChangedTime = usecTimestampNow();
+                _simulationOwnershipExpiry = usecTimestampNow() + SIMULATOR_CHANGE_LOCKOUT_PERIOD;
             }
         } else if (priority != _simulatorPriority) {
-            // This should be an uncommon event: priority is changing but simulatorID is not.
-            // We only accept this change if we are NOT the simulator owner, since otherwise
-            // we would have initiated this change.
+            // priority is changing but simulatorID is not.
+            // only accept this change if we are NOT the simulator owner, since otherwise
+            // we would have initiated this change
             auto nodeList = DependencyManager::get<NodeList>();
             if (_simulatorID != nodeList->getSessionUUID()) {
                 _simulatorPriority = priority;
@@ -1393,14 +1396,16 @@ void EntityItem::updateCreated(uint64_t value) {
 }
 
 void EntityItem::setSimulatorID(const QUuid& value) {
-    _simulatorID = value;
-    _simulatorIDChangedTime = usecTimestampNow();
+    if (_simulatorID != value) {
+        _simulatorID = value;
+        _simulationOwnershipExpiry = usecTimestampNow() + SIMULATOR_CHANGE_LOCKOUT_PERIOD;
+    }
 }
 
 void EntityItem::updateSimulatorID(const QUuid& value) {
     if (_simulatorID != value) {
         _simulatorID = value;
-        _simulatorIDChangedTime = usecTimestampNow();
+        _simulationOwnershipExpiry = usecTimestampNow() + SIMULATOR_CHANGE_LOCKOUT_PERIOD;
         _dirtyFlags |= EntityItem::DIRTY_SIMULATOR_ID;
     }
 }
diff --git a/libraries/entities/src/EntityItem.h b/libraries/entities/src/EntityItem.h
index 135ac78617..fe82870992 100644
--- a/libraries/entities/src/EntityItem.h
+++ b/libraries/entities/src/EntityItem.h
@@ -326,7 +326,7 @@ public:
     QUuid getSimulatorID() const { return _simulatorID; }
     void setSimulatorID(const QUuid& value);
     void updateSimulatorID(const QUuid& value);
-    quint64 getSimulatorIDChangedTime() const { return _simulatorIDChangedTime; }
+    const quint64& getSimulationOwnershipExpiry() const { return _simulationOwnershipExpiry; }
 
     const QString& getMarketplaceID() const { return _marketplaceID; }
     void setMarketplaceID(const QString& value) { _marketplaceID = value; }
@@ -433,7 +433,7 @@ protected:
     QString _userData;
     uint8_t _simulatorPriority;
     QUuid _simulatorID; // id of Node which is currently responsible for simulating this Entity
-    quint64 _simulatorIDChangedTime; // when was _simulatorID last updated?
+    quint64 _simulationOwnershipExpiry; // time in future when ownership is back up for grabs
     QString _marketplaceID;
     QString _name;
     QString _href; //Hyperlink href
diff --git a/libraries/entities/src/EntityTree.cpp b/libraries/entities/src/EntityTree.cpp
index 752082932b..a3ef5f9261 100644
--- a/libraries/entities/src/EntityTree.cpp
+++ b/libraries/entities/src/EntityTree.cpp
@@ -157,6 +157,7 @@ bool EntityTree::updateEntityWithElement(EntityItemPointer entity, const EntityI
                     if (entity->getSimulatorID() == senderID) {
                         // We only allow the simulation owner to clear their own simulationID's.
                         simulationBlocked = false;
+                        properties.setSimulatorPriority(0); // clear priority irregardless of priority sent
                     }
                     // else: We assume the sender really did believe it was the simulation owner when it sent
                 } else if (submittedID == senderID) {
@@ -165,9 +166,18 @@ bool EntityTree::updateEntityWithElement(EntityItemPointer entity, const EntityI
                         simulationBlocked = false;
                     } else {
                         // the sender is trying to steal ownership from another simulator
-                        // so we apply the ownership change filter
-                        if (usecTimestampNow() - entity->getSimulatorIDChangedTime() > SIMULATOR_CHANGE_LOCKOUT_PERIOD) {
-                            simulationBlocked = false;
+                        // so we apply the rules for ownership change:
+                        // (1) higher priority wins
+                        // (2) equal priority wins if ownership filter has expired except...
+                        // (3) max priority never loses
+                        uint8_t oldPriority = entity->getSimulatorPriority();
+                        if (oldPriority != MAX_SIMULATOR_PRIORITY) { 
+                            uint8_t newPriority = properties.getSimulatorPriority();
+                            if (newPriority > oldPriority || 
+                                 (newPriority == oldPriority && 
+                                  usecTimestampNow() > entity->getSimulationOwnershipExpiry())) {
+                                simulationBlocked = false;
+                            }
                         }
                     }
                 } else {
@@ -177,6 +187,7 @@ bool EntityTree::updateEntityWithElement(EntityItemPointer entity, const EntityI
             }
             if (simulationBlocked) {
                 // squash the physics-related changes.
+                properties.setSimulatorPriorityChanged(false);
                 properties.setSimulatorIDChanged(false);
                 properties.setPositionChanged(false);
                 properties.setRotationChanged(false);