Structuring Present Assignment Clauses and Power of Attorney in Hardware PIIA Agreements
Present assignment clauses and irrevocable powers of attorney in hardware PIIAs secure immediate IP ownership and enable unilateral patent filings.
Section 2870 California
Meaning
Provision within the California Labor Code that restricts the ability of employers to claim ownership of inventions developed by employees on their own time. Under section 2870 california, an employment agreement cannot require the assignment of a work that was created without using the employer equipment or trade secret information. This protection only applies if the invention does not relate to the employer’s current or anticipated business.
It provides a legal shield for engineers who work on side projects.
Statutory Protection
The language of section 2870 california is mandatory and cannot be waived by a contract between the employee and the firm. Any clause in a PIIA that attempts to capture all inventions regardless of how they were made is void to the extent it violates this law. This ensures that personal innovation remains the property of the creator.
Employers must be careful to define the scope of their business clearly to avoid overreaching.
Resource Boundary
To qualify for the protections of section 2870 california, the inventor must prove that no company resources were used during the development of the technology. This includes computers, software licenses, and laboratory space provided by the employer. The work must also be performed entirely outside of regular working hours.
Keeping a detailed log of the time and tools used is the best way for an employee to maintain their rights.
Proof Burden
In a dispute over ownership, the employee often carries the burden of showing that their work meets the criteria of section 2870 california. The company may argue that the invention is related to its research and development efforts, which would make the assignment valid. Legal battles often hinge on the specific tasks the employee was hired to perform.
Clear job descriptions help both parties understand where the boundary of ownership lies.