Creative works and inventions are at the heart of countless businesses. Often, these innovations serve as the linchpin, giving a company its competitive edge and attracting skilled workers. Because of how valuable these innovations can be, employees and employers should understand the intricacies of ownership and associated rights.
Employment Contracts
Generally, individuals retain the rights to their own creations. However, exceptions arise when an employee is bound by a contractual agreement that assigns ownership to the employer.
For that reason, employers often opt for contracts with invention-specific provisions, especially when hiring people for roles demanding creative, scientific, or programming skills.
Yet, the fairness and enforceability of such clauses vary. Notably, New York laws now prohibit clauses that grant ownership rights to employers if an employee creates something on their own time using their own equipment. However, employers can still claim ownership if company resources, time, or projects are utilized in the invention process.
Employment contracts may also include clauses that restrict employees from mishandling or disseminating proprietary information such as trade secrets and inventions. In some circumstances, such contracts may not be enforceable if they are overly broad or restrictive, or if they do not protect a legitimate business interest.
Important Information for Inventors
Intellectual property ownership can be lucrative, making it all the more important for individuals to ascertain who owns something created within a business context. Anyone employed in a role that requires creativity, innovation, or technical expertise should carefully review their current employment contract to ascertain their rights.
For job seekers or individuals likely to encounter such contracts in the future, awareness of potential restrictions is vital. A careful review of their employment agreement with the help of an attorney can help employees avoid costly oversights and losses.
