What Happened
Employees invent things. Who owns those inventions? Usually the employer, if the employee signed an assignment agreement and the invention relates to the company's business. But when employees leave, disputes arise about what was assigned and what wasn't.
Why It Matters
Standard employment agreements include assignment clauses: "I assign to the company all inventions I create related to the company's business." That seems clear, but edge cases create problems.
What if the employee worked on the invention at home, on their own time, with their own equipment? Some states have laws protecting employee inventions in those circumstances, even with an assignment clause.
What if the invention is tangentially related to the company's business but the employee wants to pursue it independently? The agreement language matters—does it cover "any invention related to" or only "inventions within the scope of employment"?
What if the employee already left but finished an invention they started while employed? Ownership gets murky.
What You Should Know
If you're an employer, use clear assignment agreements. Define the scope of covered inventions. Require disclosure of all inventions during employment. Conduct exit interviews to identify potential issues.
If you're an employee, understand what you've signed. Document your independent inventions carefully. Don't use company resources for personal projects.
If you're hiring someone from a competitor, make sure they're not bringing assigned inventions with them. That's a fast way to get sued.
Ownership disputes are expensive and distracting. Prevent them with clear agreements and careful practices.