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Trade Secrets

Does the employer or the employee own it?

The default runs the **opposite way** from contractors, and that contrast is the most useful thing to know. Work created by an employee in the course of employment generally belongs to the employer, whereas work by an independent contractor generally belongs to the contractor absent a written assignment. But the employer default is narrower than employers assume: inventions made outside the scope of duties, on the employee's own time and without company resources, may well belong to the employee.

What to do next

  1. Establish whether it was in the course of employment

    The analysis looks at the employee's actual duties, whether they were employed to invent or create, whether company time, facilities or information were used, and how closely the work relates to the employer's business. A software engineer's weekend project in an unrelated field is a genuinely different case from one in the employer's own product area.

  2. Read the employment agreement's assignment clause

    Many agreements assign inventions expressly and go further than the default. Some are so broad they may be read down - clauses purporting to capture everything an employee creates regardless of relationship to the business are vulnerable. Check what was actually signed and when.

  3. Distinguish copyright from patents

    Copyright in employee-created work generally vests in the employer by default. Patent rights depend more heavily on the employment terms and the circumstances of the invention. A single project can produce different answers for different rights.

  4. What to prepare

    The employment agreement and any IP or invention assignment clause, the job description and actual duties, the development record showing when and where the work was done, whether company resources were used, and any prior disclosure of pre-existing inventions the employee brought with them.

  5. Possible legal pathways

    A confirmatory assignment, correction of inventorship at the patent office where naming is wrong, a declaratory claim on ownership, or a breach claim where an assignment obligation was ignored. For contractors and freelancers the default is reversed - see the separate page on work a contractor created.

Frequently asked questions

My employee invented something - do I own it?

Often, if it was made in the course of employment using company time or resources and relates to the business. An invention outside those bounds may belong to the employee.

Is this the same as contractor work?

No - the defaults are opposite. Contractor-created work generally belongs to the contractor absent a written assignment, which is why that situation needs its own analysis.

Can an employment agreement assign everything?

Very broad clauses purporting to capture all employee creations regardless of connection to the business can be read down. Scope matters.

The employee left and filed a patent.

Get advice quickly. Correction of inventorship or entitlement proceedings may be available, and delay complicates both.

What about copyright versus patents?

Copyright in employee work generally vests in the employer; patent rights depend more on the employment terms and circumstances. One project can produce different answers.

This is general information, not legal advice. Laws vary by location and every situation is different — speak with a qualified lawyer about your specific circumstances.

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