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Who Owns the Intellectual Property – Employer or Employee?

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Published 01.11.08 at 09:30

Deciphering Intellectual Property Rights in the Workplace

Many misconceptions surround the ownership of intellectual property (IP) within the professional sphere, particularly when it involves creative and inventive tasks. The default ownership often lies with the creator, but this is subject to change under employment circumstances. Let's delve into the intricacies of IP rights in the context of an employer-employee relationship.

Establishing the Ground Rules of IP in Employment

When a work is spawned during employment, the assumption tilts towards the employer’s ownership. However, this isn't straightforward, as it largely depends on factors such as the nature of employment, usage of company resources, and the agreement between the parties involved.

Work Created During Office Hours and With Company Resources

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The presumption of employer-owned IP strengthens when an employee generates work within their contractual duties, especially when completed during work hours or with company facilities. Yet, exceptions may occur if prior arrangements have been made.

Confidential Information and Trade Secrets

The departure of an employee does not entitle them to take advantage of confidential information. Contracts usually specify the handling of such data, reinforcing the lens through which "trade secrets" are viewed and protected.

Understanding Patent Rights in Employment

Patents usually adjoin the employee, unless they were specifically employed to invent or if they hold a senior position within the company, in which case the employer would usually retain the patent rights.

Clarity in Contractual Agreements

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Both parties would benefit from clear-cut terms within contracts that outline the IP boundaries to prevent future disputes. Knowing whether one's role comprises invention or design is crucial in maintaining respective rights.

IP Rights and Creative Freedom Outside the 9-to-5 Grid

Individuals wishing to pursue personal projects outside of work must negotiate their terms to preserve their IP rights. Conversely, employers may desire to extend their claim on employee-produced works, advising the need for balance and fair understanding in contractual terms.

Travel, Hospitality, and Intellectual Property Considerations

In the ever-evolving landscape of employment and IP ownership, professionals frequently find themselves on the move, possibly working from different locales or during business trips. It is in these scenarios that the lines of IP ownership can blur, making it imperative for traveling employees to understand their rights – whether they are brainstorming in a hotel lounge or coding in a café. As national and international travel plays a significant role in the careers of many, it is essential to have a clear representation of IP rights that travel with you wherever you go.

Content supplied by College of Law students at the Moorgate Centre supervised by Tim Harris of Bird & Bird LLP. Photo credit: Linh Ngân.

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