A few thoughts on this: 1. I have done transactional work and litigation in and about these areas for nearly 30 years in Silicon Valley. Based on that experience, in practical terms, the risk you deal with in doing side work boils down to this: it is rare that an employer will make a claim to IP you develop on your own time and using your own resources but, when it does happen, its effect is pretty horrific. 2. Calif…
Is being no-longer-employed by your employer an absolute defense, assuming that you can prove that any IP in question was created after the end of your employment?
I'm thinking of the case where an employee does something that's either not of commercial value or lets it revert to his employer's ownership, but then quits and founds a startup (with an entirely new codebase) afterwards.
For example, Marc Andreesen writes a web browser under the terms of his employment with UIUC. He then drops out, moves to Silicon Valley, and founds a company with Jim Clark, presumably with a from-scratch codebase. They get sued for trademark infringement because they name it Mosaic Communications Corp, but UIUC has no legal claim to any of their source code or inventions developed after the end of Andreesen's employment, right, even though he gained quite a lot of experience working on web browsers there?
Or Larry and Sergey start Backrub at Stanford. It becomes Google before they leave Stanford grad school. Stanford obviously owns the PageRank patent because it was developed while they were still students, and they licensed it for a good chunk of shares. However, would Stanford own the original Google logo, forcing Google to redo it when they incorporated as a separate company? How about code - presumably Google licensed the codebase from Stanford, but if they hadn't and had started fresh instead, would Stanford have any claims on the grounds that Larry and Sergey had built an essentially identical product under their employment?