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Does my company have IP rights to the stuff I do in my spare time?

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Re: Does my company have IP rights to the stuff I do in my spare time?

#71
post #63

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…

"If what you are planning to do has commercial value, then make sure to get it checked by a good local lawyer who can guide you through the pitfalls and explain alternatives."

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?

Re: Does my company have IP rights to the stuff I do in my spare time?

#72

Google, my employer, recently refused a request that I made to release as open source some software that I had been working on in my spare time and without using any of their resources, on they claim that my software would compete with one of their projects. :-(

There's a story in there. Did Google actually have any claims to the software you wrote? If not, then you wouldn't need their persmission (except that now that you asked, they could fire you for disregarding their "advice"). I'd love to hear cdibona's views on that.

I wrote them up last time this came up, you can find it here:

http://news.ycombinator.com/item?id=1970191

Re: Does my company have IP rights to the stuff I do in my spare time?

#73
post #70
post #32

The advice in that forum is an illustration of why you should not believe legal advice that is given to you by non-lawyers. Much of it is wrong, dangerously so. For example one person claims that by default what you do on your own time is owned by you. Sorry, that varies by jurisdiction and local laws. It is true in CA, but false in NY. Several people claim that CA offers strong protections. That is true, but the pro…

Do you have a citation for your statement that "what you do in your spare time" is not owned by you in New York?

My reference was what I was informed was the law by multiple lawyers when I lived in New York. It is possible that I misunderstood or the rules have changed in the last decade, but I am pretty sure neither is the case. Still you should confirm this with a qualified attorney before accepting what I say as being absolutely true.

More precisely I was told that New York recognizes 3 types of employee relationships. They are hourly, contractor, and professional employee. The first two are obvious. You are aware if you have to punch in on a clock, or are a contractor. The default for software development is therefore the third.

As a professional employee there are no set place or hours for your employment. (That is why you don't get overtime.) Therefore anything that you do that could possibly relate to your employment is by default assumed to be a work for hire that took place during the course of your employment. There are admittedly some complications there. If a programmer writes a novel, that's going to not be a work for hire. If a programmer writes a program, that's likely going to be a work for hire. But there are gray areas. For instance a VB programmer by day who works a C device driver for Linux by night might have a case that their side project doesn't relate to their employment.

But just in case, virtually every New York company makes sure that employees sign contracts that clarifies any possible ambiguity..in favor of the employer. So the reality is that if you live in New York, you can't assume that you own your side project.

Incidentally this is the reason that the FSF (which is very careful on intellectual property) requires that they get copyright assignment both from contributers and from the contributers' employers. Because they don't want to get into a situation where they think they have copyright, but someone else has a legal claim to copyright that code.

Re: Does my company have IP rights to the stuff I do in my spare time?

#74
post #17

Earlier quoted context omitted.

It may be harder than you expect to establish that you're not in a business related to your former employer, at least to the extent that you can quickly end a legal action; all I'm saying is, that legal safeguard may not be as helpful as you'd hope.

Remember that you aren't trying to convince a bunch of HN readers - you are trying to convince a judge (who thinks computers are magic boxes) If your day job is Oracle DBA and your startup is iPhone apps or web design that still equals the same "computer stuff" to a judge.

I'm pretty sure Oracle is a good example of a company that makes you agree that they own everything you think of while employed by them.

A friend of mine became an Oracle employee when the company he worked for got acquired, and ended up needing to get approval from a long way up the org chart to be able to continue doing his phd, since the university had existing claims on ip in his phd research.

For quite a long time he described himself as " technically not being allowed to think anything..."

Re: Does my company have IP rights to the stuff I do in my spare time?

#75
post #65

Earlier quoted context omitted.

Google even prevented one prominent C# expert from renewing his microsoft MVP once he went to work for them - and this was in europe where workers generally have some protection

You are speaking of the one and only Jon Skeet. I think this had something to do with the NDA Microsoft MVPs sign (MVPs get confidential access to future plans, early looks, etc)

And when he waived all gifts and NDA access, he got his MVP status back.

Re: Does my company have IP rights to the stuff I do in my spare time?

#76
post #13
post #2

Very often, yes. The boilerplate IP contracts provided by most law firms usually claims one of: * All software development work you ever do while employed by the company. * All software development work you do using in any way any resource of the company, from computer to network connection. * All software development work you do related to the business of the company that employs you. * All software development work…

This also varies somewhat by state; there's a law in California (Labor Code section 2870[1]) that bars employers from claiming work that an employee does "on his or her own time without using the employer's equipment, supplies, facilities or trade secret information" unless the invention relates directly to the employer's business. I'd still check with a lawyer, though, even if in California --- and if elsewhere, mos…

Yes,

But the point is that most large companies will, on general principle, have you sign a piece of paper giving them everything they can imagine getting from you. Then it's up to you to figure out what existing laws says you can take back.

Re: Does my company have IP rights to the stuff I do in my spare time?

#77
post #67

I worked for a company that not only had this clause, but it extended to any and all inventions pertaining to the employers line of business for 12 months after employment terminated. When employment terminated and I intended to go work for a competitor, I was given a letter explaining that the business of my employer was "software and hardware" and was told verbally they would aggressively pursue that claim. The als…

> When they inform you of these clauses, regardless of what the state law says, they are warning you they intend to create legal problems for you if you ever try to work for anyone else.

That sort of thing used to be called barratry, and it was illegal in a lot of jurisdictions (indeed, a felony in at least one state in the US).

It's also worth pointing out that this kind of abuse is less of a threat in jurisdictions that don't default to everyone paying their own fees. The behaviour seems particularly common to the US, where to an outsider the legal system can seem obviously flawed in this respect.

In any case, the advice to just not work for organisations that try to pull this kind of crap is sound. Even if this particular case doesn't apply, it's a good bet that they will try to screw you in other ways if this "we own your life" mindset is dominant in management/HR/legal at corporate level.

I once worked for a company here in the UK that got taken over by a US company, and one of the first things they tried to do was rewrite the contract so this sort of silly stuff was in it. To cut a long story short, I don't know what happened to the HR people who were originally responsible for the handover, because we never saw them again, but most of the original staff from the acquired company did stay and everyone had exactly the original IP clauses back in the contracts by the time we'd finished collectively re-educating the new owners about how much of our lives they were going to own.

Re: Does my company have IP rights to the stuff I do in my spare time?

#78

Google, my employer, recently refused a request that I made to release as open source some software that I had been working on in my spare time and without using any of their resources, on they claim that my software would compete with one of their projects. :-(

There's a tricky balance to be struck here.

On the one hand, it's not unreasonable that a company paying an employee to work for them should expect a certain degree of loyalty as long as they are taking a company pay cheque. That would reasonably include the employee not directly competing with their employer.

On the other hand, some employers are vast companies, and no one employee can possibly know everything that is going on. Is it really fair to penalise someone who creates a side project completely independently of work, just because it happens to relate to a company project of which the employee had no knowledge? If you allow that, without imposing a corresponding duty on the company to disclose everything they do to every restricted employee so that employees can understand the mutual obligations before making decisions that might be affected by them, doesn't that conflict with the most basic principles of contract law?

Re: Does my company have IP rights to the stuff I do in my spare time?

#80

IANAL, but in the UK, unless you have a contract that specifically says otherwise, yes. On the other hand, if the outside work provably used no employer resources, and provably is unrelated, then you can probably defend yourself against an action. But you really, really don't want to depend on that. Get it sorted up front. Get an explicit agreement with your employer that non-competing work done without their resourc…

> IANAL, but in the UK, unless you have a contract that specifically says otherwise, yes.

Cite, please. Your claim directly contradicts formal advice I have received from multiple employment law specialists in the UK, on several occasions over the past few years, most recently last year.

You're right that it's always better to be clear in the contract anyway, though.

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