How can an employee protect the IP created during after-hours work?
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I've been working on a startup but am running out of cash and will not be able to launch before I get a job. I will be speaking about the startup while I am interviewing for jobs, so after getting hired I expect my employer to be able to observe certain public activities of mine that relate to my startup. These activities might be considered undesirable by certain managers but I am committed to keeping this project going while I work during the day. I'm just not sure how to insist on this during the hiring process and prevent conflicts down the road. What I'm worried about is my employer later claiming ownership of my "side project"/side business (even though it is 90% complete at the moment). One of the jobs I am considering is in a similar area to the startup I have been working on - which makes it even more likely they will perceive a conflict of interest at some point - even if my current hiring manager does not perceive a conflict. But people in charge change over time and can eventually see things differently down the road. Or it's possible some type of conflict may emerge with my employer in which this could be used as a threat. I have been debating whether to incorporate now or later and whether this might afford some type of protection to my intellectual property (IP) - if I transfer it to the incorporated company before I start working for an employer, perhaps this would prevent the employer claiming that they own the IP that I work on after I go home from work every night. Also, what should I be looking out for in employment non-compete agreements that might interfere with my ability to work on this project after work?
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Answer:
I think you need to speak to a lawyer about this and take any contract of employment with you (unsigned). If you have this much at risk, I think you should be seeking professional advice. I personally have turned down contracts in order to protect my own IP. For my situation, the risk of signing the type of contract stating, 'all your work are belong to us' is not worth it because I spent years working it (it's natural language processing which requires lots of development before an MVP is possible).
Anonymous at Quora Visit the source
Other answers
Short answer: When you sign a Proprietary Information and Inventions Agreement (or similar agreement) with the new company, you explicitly carve out the project you have been working on. Slightly longer answer: You are dancing through a field full of land mines. At the least, there potentially are unaddressed issues with respect to the current startup in addition to a new employer (my guess is that your work to date has not been adequately acknowledged and protected fro the legal perspective). You should retain an experienced intellectual property / business lawyer to advise you before you go any further.This answer is not a substitute for professional legal advice....
Dana H. Shultz
I am sure that other Quora users can speak more knowledgably about this topic than I can, but here goes: Re: Ownership of intellectual property When you start work as an engineer, the company will ask you to sign a document where you assign to them the rights to intellectual property that you develop while employed by them. You are allowed to exclude prior inventions. A lawyer specializing in intellectual property rights can tell you more, and you should definitely consult one before taking full time employment. Re: Incorporation Incorporation would allow you to assign the intellectual property rights for all your existing inventions to the corporation meaning they no longer belong to you as a legal entity, they belong to this alternate you--the corporation. If you are going to do that, it might be better to incorporate before you take the new job giving you a clean break--everything developed before such and such a date belongs to your corp. Everything after to your new employer. Re: working on your own project while simultaneously working for them I am going to guess they will not be hot on this idea. I have never met an employer who was OK with its employees having a second job which in effect you will have or with you developing intellectual property on the side which may compete directly with their product. Your best bet to get around it would be to accept a position as a contractor. Then they have no say over what you do in your spare time.
Andrew Gumperz
You might like this blog post: http://www.startuplawblog.com/2011/08/05/the-moonlighting-survival-guide/
Joe Wallin
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