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  3. Employment Contract Interpretation - invention/creation

Employment Contract Interpretation - invention/creation

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  • L Offline
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    Leftyfarrell
    wrote on last edited by
    #1

    I'd like some opinions about the following paragraph which appears in an employment contract I received recently. ======= Inventions and creations belong to the Company Any and all "Creations" (i.e. inventions, discoveries, improvements, or creations) which the Employee has conceived or made or may conceive or make during the period of employment in any way, directly or indirectly, connected with the Company (collectively "Creations"), shall be the sole and exclusive property of the Company. The Employee agrees that all copyrightable works created by the Employee or under the Company's direction in connection with the Company's business are "works made for hire" and shall be the sole and complete property of the Company and that any and all copyrights to such works shall belong to the Company. To the extent such works are not deemed to be "works made for hire," the Employee hereby assigns all proprietary rights, including copyright, in these works to the Company without further compensation. ======= Does this mean that if I start my own home business on the side, and build a website that conducts business in a totally unrelated field to that of my employer, they could still lay a claim to that business/website/invention?

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    • L Leftyfarrell

      I'd like some opinions about the following paragraph which appears in an employment contract I received recently. ======= Inventions and creations belong to the Company Any and all "Creations" (i.e. inventions, discoveries, improvements, or creations) which the Employee has conceived or made or may conceive or make during the period of employment in any way, directly or indirectly, connected with the Company (collectively "Creations"), shall be the sole and exclusive property of the Company. The Employee agrees that all copyrightable works created by the Employee or under the Company's direction in connection with the Company's business are "works made for hire" and shall be the sole and complete property of the Company and that any and all copyrights to such works shall belong to the Company. To the extent such works are not deemed to be "works made for hire," the Employee hereby assigns all proprietary rights, including copyright, in these works to the Company without further compensation. ======= Does this mean that if I start my own home business on the side, and build a website that conducts business in a totally unrelated field to that of my employer, they could still lay a claim to that business/website/invention?

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      StevenWalsh
      wrote on last edited by
      #2

      Are you hourly, or salery?

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      • S StevenWalsh

        Are you hourly, or salery?

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        Leftyfarrell
        wrote on last edited by
        #3

        The clause above applies to an employment contract for a full time employee on salary.

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        • L Leftyfarrell

          I'd like some opinions about the following paragraph which appears in an employment contract I received recently. ======= Inventions and creations belong to the Company Any and all "Creations" (i.e. inventions, discoveries, improvements, or creations) which the Employee has conceived or made or may conceive or make during the period of employment in any way, directly or indirectly, connected with the Company (collectively "Creations"), shall be the sole and exclusive property of the Company. The Employee agrees that all copyrightable works created by the Employee or under the Company's direction in connection with the Company's business are "works made for hire" and shall be the sole and complete property of the Company and that any and all copyrights to such works shall belong to the Company. To the extent such works are not deemed to be "works made for hire," the Employee hereby assigns all proprietary rights, including copyright, in these works to the Company without further compensation. ======= Does this mean that if I start my own home business on the side, and build a website that conducts business in a totally unrelated field to that of my employer, they could still lay a claim to that business/website/invention?

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          Chris Losinger
          wrote on last edited by
          #4

          Leftyfarrell wrote:

          Does this mean that if I start my own home business on the side, and build a website that conducts business in a totally unrelated field to that of my employer, they could still lay a claim to that business/website/invention?

          yes i'd ask if they'd waive that.

          image processing toolkits | batch image processing

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          • L Leftyfarrell

            The clause above applies to an employment contract for a full time employee on salary.

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            StevenWalsh
            wrote on last edited by
            #5

            Then from my understanding (this is how it was for me before i started contracting, then again your contractor may own the work you do outside of work too... so you'd have to look at your contract) However technically i'd say Its theirs. So if you think you have something, leave wait a while... and BOOM look at your great new product. I'm NOT a lawyer though, so really this is a question you should ask a qualified person with credentials.... THATS A MUST if you're serious.

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            • L Leftyfarrell

              I'd like some opinions about the following paragraph which appears in an employment contract I received recently. ======= Inventions and creations belong to the Company Any and all "Creations" (i.e. inventions, discoveries, improvements, or creations) which the Employee has conceived or made or may conceive or make during the period of employment in any way, directly or indirectly, connected with the Company (collectively "Creations"), shall be the sole and exclusive property of the Company. The Employee agrees that all copyrightable works created by the Employee or under the Company's direction in connection with the Company's business are "works made for hire" and shall be the sole and complete property of the Company and that any and all copyrights to such works shall belong to the Company. To the extent such works are not deemed to be "works made for hire," the Employee hereby assigns all proprietary rights, including copyright, in these works to the Company without further compensation. ======= Does this mean that if I start my own home business on the side, and build a website that conducts business in a totally unrelated field to that of my employer, they could still lay a claim to that business/website/invention?

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              Marc Clifton
              wrote on last edited by
              #6

              Leftyfarrell wrote:

              Any and all "Creations" (i.e. inventions, discoveries, improvements, or creations) which the Employee has conceived or made or may conceive or make during the period of employment in any way, directly or indirectly, connected with the Company (collectively "Creations"), shall be the sole and exclusive property of the Company.

              Which is why I'm a consultant. If I create something on my time, it's mine, not the "Company's". And the rest is more of the same--we own you and what you do, think, and piss 24/7/365. You should ask them if any children conceived during the period of employment, directly or indirectly with a woman, is also the sole and exclusive property of the Company. You are performing an act of creation, after all. Maybe they'll pay for the diapers. Marc

              Thyme In The Country
              Interacx
              My Blog

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              • C Chris Losinger

                Leftyfarrell wrote:

                Does this mean that if I start my own home business on the side, and build a website that conducts business in a totally unrelated field to that of my employer, they could still lay a claim to that business/website/invention?

                yes i'd ask if they'd waive that.

                image processing toolkits | batch image processing

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                J 0
                wrote on last edited by
                #7

                Chris Losinger wrote:

                i'd ask if they'd waive that.

                Or try and add a clause that states, as long as something you've created is in use @ the company after you've moved on, you are still entitled to receive paychecks.:-D

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                • S StevenWalsh

                  Then from my understanding (this is how it was for me before i started contracting, then again your contractor may own the work you do outside of work too... so you'd have to look at your contract) However technically i'd say Its theirs. So if you think you have something, leave wait a while... and BOOM look at your great new product. I'm NOT a lawyer though, so really this is a question you should ask a qualified person with credentials.... THATS A MUST if you're serious.

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                  Leftyfarrell
                  wrote on last edited by
                  #8

                  Thanks for your opinion. In this case, it is an employment contract for a position I am considering taking, but have not yet signed. I just wanted to gather some opinions on its meaning. I can understand the employer wanting to capitalize on inventions related to their business during my employment, but I obviously disagree with them owning an idea that is unrelated to their business and the work I do for them. If I signed this contract, wouldn't it give them a claim on Firefox or any other open source projects that I might work on in my spare time? That sounds unreasonable to me.

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                  • M Marc Clifton

                    Leftyfarrell wrote:

                    Any and all "Creations" (i.e. inventions, discoveries, improvements, or creations) which the Employee has conceived or made or may conceive or make during the period of employment in any way, directly or indirectly, connected with the Company (collectively "Creations"), shall be the sole and exclusive property of the Company.

                    Which is why I'm a consultant. If I create something on my time, it's mine, not the "Company's". And the rest is more of the same--we own you and what you do, think, and piss 24/7/365. You should ask them if any children conceived during the period of employment, directly or indirectly with a woman, is also the sole and exclusive property of the Company. You are performing an act of creation, after all. Maybe they'll pay for the diapers. Marc

                    Thyme In The Country
                    Interacx
                    My Blog

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                    Leftyfarrell
                    wrote on last edited by
                    #9

                    LOL... great response!

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                    • L Leftyfarrell

                      Thanks for your opinion. In this case, it is an employment contract for a position I am considering taking, but have not yet signed. I just wanted to gather some opinions on its meaning. I can understand the employer wanting to capitalize on inventions related to their business during my employment, but I obviously disagree with them owning an idea that is unrelated to their business and the work I do for them. If I signed this contract, wouldn't it give them a claim on Firefox or any other open source projects that I might work on in my spare time? That sounds unreasonable to me.

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                      StevenWalsh
                      wrote on last edited by
                      #10

                      It looks like a standard IP contract anyone is going to make you sign. If you've already started the project you should be able to add it as an exception.

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                      • L Leftyfarrell

                        I'd like some opinions about the following paragraph which appears in an employment contract I received recently. ======= Inventions and creations belong to the Company Any and all "Creations" (i.e. inventions, discoveries, improvements, or creations) which the Employee has conceived or made or may conceive or make during the period of employment in any way, directly or indirectly, connected with the Company (collectively "Creations"), shall be the sole and exclusive property of the Company. The Employee agrees that all copyrightable works created by the Employee or under the Company's direction in connection with the Company's business are "works made for hire" and shall be the sole and complete property of the Company and that any and all copyrights to such works shall belong to the Company. To the extent such works are not deemed to be "works made for hire," the Employee hereby assigns all proprietary rights, including copyright, in these works to the Company without further compensation. ======= Does this mean that if I start my own home business on the side, and build a website that conducts business in a totally unrelated field to that of my employer, they could still lay a claim to that business/website/invention?

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                        Maximilien
                        wrote on last edited by
                        #11

                        If it's unrelated to your current employment ( in any way, directly or indirectly, connected with the Company (collectively "Creations") or or under the Company's direction in connection with the Company's business) , I don't see a problem. BUT : IANAL


                        Maximilien Lincourt Your Head A Splode - Strong Bad

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                        • L Leftyfarrell

                          I'd like some opinions about the following paragraph which appears in an employment contract I received recently. ======= Inventions and creations belong to the Company Any and all "Creations" (i.e. inventions, discoveries, improvements, or creations) which the Employee has conceived or made or may conceive or make during the period of employment in any way, directly or indirectly, connected with the Company (collectively "Creations"), shall be the sole and exclusive property of the Company. The Employee agrees that all copyrightable works created by the Employee or under the Company's direction in connection with the Company's business are "works made for hire" and shall be the sole and complete property of the Company and that any and all copyrights to such works shall belong to the Company. To the extent such works are not deemed to be "works made for hire," the Employee hereby assigns all proprietary rights, including copyright, in these works to the Company without further compensation. ======= Does this mean that if I start my own home business on the side, and build a website that conducts business in a totally unrelated field to that of my employer, they could still lay a claim to that business/website/invention?

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                          Member 96
                          wrote on last edited by
                          #12

                          You'll have to ask a lawyer but my reading is that they actually worded that pretty generously and are strictly limiting it to anything that pertains to the company's own business. The key phrase being "..., connected with the Company..."


                          "I don't want more choice. I just want better things!" - Edina Monsoon

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                          • L Leftyfarrell

                            I'd like some opinions about the following paragraph which appears in an employment contract I received recently. ======= Inventions and creations belong to the Company Any and all "Creations" (i.e. inventions, discoveries, improvements, or creations) which the Employee has conceived or made or may conceive or make during the period of employment in any way, directly or indirectly, connected with the Company (collectively "Creations"), shall be the sole and exclusive property of the Company. The Employee agrees that all copyrightable works created by the Employee or under the Company's direction in connection with the Company's business are "works made for hire" and shall be the sole and complete property of the Company and that any and all copyrights to such works shall belong to the Company. To the extent such works are not deemed to be "works made for hire," the Employee hereby assigns all proprietary rights, including copyright, in these works to the Company without further compensation. ======= Does this mean that if I start my own home business on the side, and build a website that conducts business in a totally unrelated field to that of my employer, they could still lay a claim to that business/website/invention?

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                            Chris Maunder
                            wrote on last edited by
                            #13

                            Disclaimer: I'm not a lawyer. Get advice on this. This is a standard clause to ensure you don't turn around and sue the company and say to them "you owe me a billion dollars because you're using an idea I had and I haven't given you permission". The key words here are:

                            Leftyfarrell wrote:

                            in any way, directly or indirectly, connected with the Company

                            so if you create a company that is not directly or indirectly connected with the Company then this clause does not seem to apply. However, if you do something that is related to company business then you should not be working for the company because you are, in effect, their competition.

                            cheers, Chris Maunder

                            CodeProject.com : C++ MVP

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                            • M Marc Clifton

                              Leftyfarrell wrote:

                              Any and all "Creations" (i.e. inventions, discoveries, improvements, or creations) which the Employee has conceived or made or may conceive or make during the period of employment in any way, directly or indirectly, connected with the Company (collectively "Creations"), shall be the sole and exclusive property of the Company.

                              Which is why I'm a consultant. If I create something on my time, it's mine, not the "Company's". And the rest is more of the same--we own you and what you do, think, and piss 24/7/365. You should ask them if any children conceived during the period of employment, directly or indirectly with a woman, is also the sole and exclusive property of the Company. You are performing an act of creation, after all. Maybe they'll pay for the diapers. Marc

                              Thyme In The Country
                              Interacx
                              My Blog

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                              Douglas Troy
                              wrote on last edited by
                              #14

                              Screw the diapers, what about private school?!?! :)


                              :..::. Douglas H. Troy ::..
                              Bad Astronomy |VCF|wxWidgets|WTL

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                              • M Marc Clifton

                                Leftyfarrell wrote:

                                Any and all "Creations" (i.e. inventions, discoveries, improvements, or creations) which the Employee has conceived or made or may conceive or make during the period of employment in any way, directly or indirectly, connected with the Company (collectively "Creations"), shall be the sole and exclusive property of the Company.

                                Which is why I'm a consultant. If I create something on my time, it's mine, not the "Company's". And the rest is more of the same--we own you and what you do, think, and piss 24/7/365. You should ask them if any children conceived during the period of employment, directly or indirectly with a woman, is also the sole and exclusive property of the Company. You are performing an act of creation, after all. Maybe they'll pay for the diapers. Marc

                                Thyme In The Country
                                Interacx
                                My Blog

                                M Offline
                                M Offline
                                Malcolm Smart
                                wrote on last edited by
                                #15

                                Marc Clifton wrote:

                                directly or indirectly with a woman

                                Just with a woman? So my spate of beastiality, and siring a small litter of dogs would fall outside of this?

                                "More functions should disregard input values and just return 12. It would make life easier." - comment posted on WTF

                                "I haven't spoken to my wife now for 48 hours. I don't like to interrupt her.

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                                • L Leftyfarrell

                                  I'd like some opinions about the following paragraph which appears in an employment contract I received recently. ======= Inventions and creations belong to the Company Any and all "Creations" (i.e. inventions, discoveries, improvements, or creations) which the Employee has conceived or made or may conceive or make during the period of employment in any way, directly or indirectly, connected with the Company (collectively "Creations"), shall be the sole and exclusive property of the Company. The Employee agrees that all copyrightable works created by the Employee or under the Company's direction in connection with the Company's business are "works made for hire" and shall be the sole and complete property of the Company and that any and all copyrights to such works shall belong to the Company. To the extent such works are not deemed to be "works made for hire," the Employee hereby assigns all proprietary rights, including copyright, in these works to the Company without further compensation. ======= Does this mean that if I start my own home business on the side, and build a website that conducts business in a totally unrelated field to that of my employer, they could still lay a claim to that business/website/invention?

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                                  Michael Dunn
                                  wrote on last edited by
                                  #16

                                  That's pretty standard language, as Chris said. In California, employment agreements have an addendum explicitly spelling out "whatever you do on your own time is yours" - the key there is on your own time. If you use the company's equipment, they might legally have a claim to it.

                                  --Mike-- Visual C++ MVP :cool: LINKS~! Ericahist | PimpFish | CP SearchBar v3.0 | C++ Forum FAQ Hungarian notation FTW

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                                  • M Malcolm Smart

                                    Marc Clifton wrote:

                                    directly or indirectly with a woman

                                    Just with a woman? So my spate of beastiality, and siring a small litter of dogs would fall outside of this?

                                    "More functions should disregard input values and just return 12. It would make life easier." - comment posted on WTF

                                    "I haven't spoken to my wife now for 48 hours. I don't like to interrupt her.

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                                    Colin Angus Mackay
                                    wrote on last edited by
                                    #17

                                    Malcolm Smart wrote:

                                    Just with a woman? So my spate of beastiality, and siring a small litter of dogs would fall outside of this?

                                    That probably isn't something you really want to admit to. However, I remember my dad telling me about his first arrest (he's now a retired police officer and this was back in the 60s) was when he caught someone interfering* with a sheep. Apparently the sheep was caught by surprise and evacuated its bowels into the man's trousers which were, by this point, around his ankles. * Some people will take offence at the word I want to use, but it is technically the correct term and not a form of cursing as far as I'm concerned, but this is in the lounge so I'll hold my tounge (or keyboard in this case)


                                    Upcoming FREE developer events: * Glasgow: Agile in the Enterprise Vs. ISVs, Mock Objects, SQL Server CLR Integration, Reporting Services, db4o, Dependency Injection with Spring ... * Reading: SQL Bits My website

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                                    • L Leftyfarrell

                                      I'd like some opinions about the following paragraph which appears in an employment contract I received recently. ======= Inventions and creations belong to the Company Any and all "Creations" (i.e. inventions, discoveries, improvements, or creations) which the Employee has conceived or made or may conceive or make during the period of employment in any way, directly or indirectly, connected with the Company (collectively "Creations"), shall be the sole and exclusive property of the Company. The Employee agrees that all copyrightable works created by the Employee or under the Company's direction in connection with the Company's business are "works made for hire" and shall be the sole and complete property of the Company and that any and all copyrights to such works shall belong to the Company. To the extent such works are not deemed to be "works made for hire," the Employee hereby assigns all proprietary rights, including copyright, in these works to the Company without further compensation. ======= Does this mean that if I start my own home business on the side, and build a website that conducts business in a totally unrelated field to that of my employer, they could still lay a claim to that business/website/invention?

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                                      cp9876
                                      wrote on last edited by
                                      #18

                                      I am not a lawyer but have had to cope with similar situations. This sounds like a fairly standard employment clause. If you create something that is related to their business in any way, and if it turns out to be valuable, they may want it and would have some sort of claim on it. What you do depends on whether you have much leverage with your employer. The safest approach is to approach your employer for a written exemption for what you are planning - obtaining this often depends on how you approach it. You can often present it as a win-win situation, e.g. "I am going to spend spare time developing technologies for xxx but they will also enable me to improve what I do here", also it may be appropriate to offer them free use of the technology in some way. Point out that you are only prepared to do this if they give you an exemption. Alternatively, make sure that you leave the job while the technology is incomplete and so not worth very much. It can be very hard for them to say that you didn't develop most of it in the few months between leaving them and launching the product.


                                      Peter "Until the invention of the computer, the machine gun was the device that enabled humans to make the most mistakes in the smallest amount of time."

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                                      • L Leftyfarrell

                                        I'd like some opinions about the following paragraph which appears in an employment contract I received recently. ======= Inventions and creations belong to the Company Any and all "Creations" (i.e. inventions, discoveries, improvements, or creations) which the Employee has conceived or made or may conceive or make during the period of employment in any way, directly or indirectly, connected with the Company (collectively "Creations"), shall be the sole and exclusive property of the Company. The Employee agrees that all copyrightable works created by the Employee or under the Company's direction in connection with the Company's business are "works made for hire" and shall be the sole and complete property of the Company and that any and all copyrights to such works shall belong to the Company. To the extent such works are not deemed to be "works made for hire," the Employee hereby assigns all proprietary rights, including copyright, in these works to the Company without further compensation. ======= Does this mean that if I start my own home business on the side, and build a website that conducts business in a totally unrelated field to that of my employer, they could still lay a claim to that business/website/invention?

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                                        Ashley van Gerven
                                        wrote on last edited by
                                        #19

                                        Leftyfarrell wrote:

                                        has conceived or made or may conceive or make

                                        Any ideas the employee has while under that contract, even if he/she doesn't act on them until after leaving, the company could claim ownership of. So don't date your ideas, should you have to note any.

                                        Leftyfarrell wrote:

                                        directly or indirectly, connected with the Company

                                        What does indirectly mean? I guess even an obscure connection.

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                                        • C cp9876

                                          I am not a lawyer but have had to cope with similar situations. This sounds like a fairly standard employment clause. If you create something that is related to their business in any way, and if it turns out to be valuable, they may want it and would have some sort of claim on it. What you do depends on whether you have much leverage with your employer. The safest approach is to approach your employer for a written exemption for what you are planning - obtaining this often depends on how you approach it. You can often present it as a win-win situation, e.g. "I am going to spend spare time developing technologies for xxx but they will also enable me to improve what I do here", also it may be appropriate to offer them free use of the technology in some way. Point out that you are only prepared to do this if they give you an exemption. Alternatively, make sure that you leave the job while the technology is incomplete and so not worth very much. It can be very hard for them to say that you didn't develop most of it in the few months between leaving them and launching the product.


                                          Peter "Until the invention of the computer, the machine gun was the device that enabled humans to make the most mistakes in the smallest amount of time."

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                                          Orcrist
                                          wrote on last edited by
                                          #20

                                          Would you not say that if you approach the company with the idea then you have already "conceived" it while employed by the company and therefore it is their property. At least thats the way I see it... Cheers, David

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