If you have employees who conduct research and who may invent products or devices in the course of that research, establish an agreement with those employees from the beginning of employment.

However, if you require or offer an employee to assign their invention rights to you, know that these rights do not apply to an invention if:

The invention is developed entirely on the employee’s own time
The equipment, supplies and facilities belong to the employee
The employee did not use any of your trade secrets
The invention does not relate to your business or to your actual research or development
The invention does not result from any work performed by the employee for you

You cannot enforce any agreement that purports to apply to these inventions.1

An employment agreement in which the employee agrees to assign their rights and interests in inventions to you can simplify problems that can arise with employee inventions if that agreement is consistent with the above. The employment agreement can require the employee to assign or offer to assign the employee’s rights to an invention if, at the time the invention is conceived or put into practice, it relates to your business or to your actual or demonstrably anticipated research.

1. Lab. Code sec. 2870

Protecting Employer Information

Employee Inventions

Protecting Employer Information