It should be no surprise that companies look to hire people with the brightest and most creative minds. The next great idea could be the one that puts a business at the top of a market.
But what happens if you decide to leave the company? Can you take your idea with you, or does the company now own it?
Understanding intellectual property
Intellectual property (IP) refers to creations of the mind, such as inventions, literary works, art, music, designs and images. There are four main types of IP:
- Patents to protect new inventions
- Trademarks protect brand names, logos and slogans
- Copyrights that protect the original creators of books, music, films and software
- Trade secrets are confidential business information that provides a competitive edge, such as formulas or processes
Ideas have always been one of a business’s most valuable assets, and the primary source that dictates who owns those ideas is the employment contract. Most agreements include specific clauses that outline ownership rights over ideas and inventions created during the course of employment.
A “work for hire” provision is often a standard clause in employment contracts. It states that the employer automatically owns any work an employee creates as part of their job duties. Another clause, the “invention assignment,” requires employees to assign any inventions conceived during their employment to the company.
In the past, intellectual property laws tended to favor the employer. However, effective September 15, 2023, New York State Labor Law Section 203-F states that any invention created by an employee during their own time and using their own resources belongs to that employee.
If you are part of New York State’s workforce, it’s crucial that you know your rights regarding IP. And keeping detailed records of when and how your invention was developed is invaluable. You will want to discuss your situation with someone who can guide you through protecting your IP and ensuring your ideas belong only to you.