Employee-Created Intellectual Property: Securing Ownership Rights

Description

Most companies wrongly assume they own their contractors’ and employees’ IP created in the context of their employment. To avoid costly disputes companies should be proactive in securing ownership in the IP.

Written agreements can avoid IP ownership issues with employees and contractors. Absent an agreement, consultants and independent contractors can resell or make derivative works of the work created for the company. The agreement should contain a carve-out provision for previously created works and preexisting obligations the employee or independent contractor has.

If the company is involved in a merger, acquisition or investment there can be significant consequences as a result of failing to have exclusive IP ownership. The lack of ownership in IP may put a halt to financing or a deal. To avoid disputes over IP ownership, counsel to companies must secure rights for employee-created or contractor-created IP and ensure employees, consultants and independent contractors sign confidentiality and invention assignment agreements.

Listen as our authoritative panel of IP attorneys examines the challenges facing companies that have employees or third-party contractors creating IP. The panel will discuss key provisions and strategies when structuring employee assignment agreements and third-party contractor agreements. The panel will also address carve outs, preexisting obligations and other hurdles to ensuring ownership.