Meaning
Disclosure lists provided at the start of an employment relationship separate new work from existing assets. Prior invention schedules act as a boundary that prevents the employer from claiming rights to earlier work. By including prior invention schedules in an employment agreement, the worker identifies what they have already created.
Conflict Avoidance
These lists protect the employee from being accused of using company resources to develop their own projects. The prior invention schedules also help the company avoid accidentally infringing on the pre-existing rights of their own staff. Clarity at the start of the relationship prevents expensive litigation when the employee leaves.
Disclosure Requirement
Most companies require that these schedules are blank unless the employee provides specific details of patents or software. If a worker fails to update their prior invention schedules, they may lose the ability to claim those assets later. The level of detail required varies depending on the sensitivity of the technical field.
Investor Review
During a sale of the company, lawyers check these lists to ensure that no core technology is actually owned by a founder individually. Clean prior invention schedules are a sign of good corporate governance. They ensure that the company owns all the assets it claims to have.
