Inventions Made By An Employee - Employer And Employee - Labor - CA

Section § 2870

This law states that if an employee creates an invention on their own time without using their employer’s resources, that invention belongs to the employee. The exception is if the invention is related to the employer’s business or expected research, or if it results from work the employee did for the employer. Any employment agreement that tries to make the employee assign such personal inventions to the employer is not allowed and goes against California public policy.

(a) Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer’s equipment, supplies, facilities, or trade secret information except for those inventions that either:

(1) Relate at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably anticipated research or development of the employer; or

(2) Result from any work performed by the employee for the employer.

(b) To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable.

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Section § 2871

This law prohibits employers from requiring employees to agree to terms that would be void according to Section 2870, as a condition of employment or to keep their job. However, employers can still ask employees to disclose inventions made during employment, as long as it's done confidentially. Additionally, employers can review such disclosures and ensure that certain patents and inventions belong to the United States if necessary due to contracts with the government or its agencies.

No employer shall require a provision made void and unenforceable by Section 2870 as a condition of employment or continued employment. Nothing in this article shall be construed to forbid or restrict the right of an employer to provide in contracts of employment for disclosure, provided that any such disclosures be received in confidence, of all of the employee’s inventions made solely or jointly with others during the term of his or her employment, a review process by the employer to determine such issues as may arise, and for full title to certain patents and inventions to be in the United States, as required by contracts between the employer and the United States or any of its agencies.

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Section § 2872

This law states that if a job contract (made after January 1, 1980) requires employees to give their invention rights to their employer, the employer must inform the employee in writing that this does not apply to inventions protected under Section 2870. If there's a legal dispute, it's up to the employee to prove that their invention qualifies for the protection.

If an employment agreement entered into after January 1, 1980, contains a provision requiring the employee to assign or offer to assign any of his or her rights in any invention to his or her employer, the employer must also, at the time the agreement is made, provide a written notification to the employee that the agreement does not apply to an invention which qualifies fully under the provisions of Section 2870. In any suit or action arising thereunder, the burden of proof shall be on the employee claiming the benefits of its provisions.

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