INVENTOR UNDERGROUNDFIELD GUIDES & THE 2006 COLLECTION
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FIELD GUIDES

Does Your Employer Own Your Side-Project Invention?

Gather agreements, duties, resources and development history before assuming an after-hours project is yours.

4 MIN READ RESEARCH, EXAMPLES & PRACTICAL STEPS

A divided desk has a closed work laptop and office badge on one side and a personal inventor notebook and homemade prototype on the other, a clear physical boundary separates the resources.
Conceptual illustration for this guide.

THE SHORT ANSWER

Do not assume that working at home or after hours settles ownership. Review your employment agreements, job duties, use of employer resources, relationship to the employer's business and the applicable law. Some jurisdictions limit assignment clauses, but the exceptions are fact-specific. Build a factual record and obtain legal advice before disclosing, licensing or promising ownership of a side-project invention.

Separate time, resources and subject matter

An invention can be developed at night yet relate closely to assigned work. It can use a personal laptop while relying on confidential employer information. Conversely, a genuinely separate project may have protections under applicable law. No single fact answers every case.

California's California Labor Code section 2870 contains a specific limitation on certain employee invention-assignment provisions, with exceptions. The UK's UK: Patents Act section 39, employee inventions uses its own framework for employee inventions. Their differences illustrate why a general internet rule cannot replace advice about your location and circumstances.

Collect the documents before forming a conclusion

  1. Employment agreement. Include invention-assignment, confidentiality and outside-activity terms.
  2. Related documents. Gather offer letters, amendments, acknowledged policies and project-specific agreements.
  3. Job duties. Describe what you are actually employed to do, not only your title.
  4. Development history. Record when the concept and important improvements arose.
  5. Resources. Identify equipment, accounts, materials, facilities and paid time used.
  6. Business relationship. Explain any connection to the employer's products, research or anticipated work.

Be accurate about mixed use. A clean-looking summary that omits a company test instrument or an earlier work assignment makes legal advice less reliable. Do not alter records to make the project appear more independent.

A hypothetical weekend invention

An employee develops a gardening device on weekends using personal tools. The employer makes unrelated office furniture, and the employee's duties involve payroll administration. Another employee develops a new fastening mechanism at home while working as a fastening-system engineer for a manufacturer.

The phrase “I built it on my own time” applies to both stories, but the surrounding facts differ substantially. Neither should be decided from that phrase alone. Agreements, duties, business connection and applicable law require review.

Suppose the second employee used a work prototype to test the mechanism. That fact should be included, not hidden. The advice may address ownership, confidentiality and outside-activity obligations separately. Being permitted to pursue a side business does not necessarily settle rights in every technical contribution.

Use a factual project boundary

For ongoing development, use separate personal accounts and resources where appropriate, keep a dated project record, and avoid using employer confidential material. These habits improve clarity but do not guarantee ownership if other facts or obligations apply. Treat them as recordkeeping and operational separation, not a legal shield.

If an agreement provides a process for identifying pre-existing inventions or requesting approval, ask counsel how it applies before making representations. A casual manager's encouragement may not equal a binding rights release by the correct entity.

Questions for an employment or IP lawyer

  • Which law governs the relevant agreements and rights?
  • How do the actual duties and business connection affect the analysis?
  • Do statutory limits apply, and what exceptions matter?
  • What existing disclosure or approval duties need attention?
  • Would a written clarification or exclusion help, and who must authorize it?
  • What can be represented to a partner or investor now?

Bring the technical description as well as contracts. A lawyer cannot evaluate the relationship to the employer's work from the label “consumer gadget” if the mechanism comes from a specialized work project.

Avoid premature promises to outsiders

Do not sign a license or investor representation stating that you own all rights while a material employer question remains unresolved. Explain the uncertainty to your adviser and resolve it before creating a second conflict. The same caution applies when contributing the invention to a new company.

Also consider collaborators' obligations. A friend helping with engineering may have their own employer or university agreement. Your personal separation from your employer does not establish a clean rights chain for everyone involved.

Diagnose common misconceptions

One misconception is that no written assignment means no possible employer interest. Another is that a company automatically owns everything an employee thinks of. A third is that forming an LLC transforms disputed work into independent property. Each skips the actual facts and legal framework.

Do not rely on advice written for another country or state simply because the example sounds similar. Even the same jurisdiction can produce different outcomes based on duties, agreements and development history.

The deliverable

Prepare a chronology, resource-use list, employment document set and a concise technical description. Mark uncertainties and preserve supporting records. The goal is an informed rights assessment and, where appropriate, a clear written arrangement before commercialization.

This is educational guidance, not legal advice. It does not determine ownership of any employee invention or recommend concealing a project from an employer.

Questions readers ask

If I use only my own laptop, is the invention mine?

That fact may matter, but it does not settle the question. Agreements, duties, subject matter and applicable law can also be relevant.

Does California law protect every after-hours invention?

No. Section 2870 has conditions and exceptions. Have a lawyer assess the actual project and agreement rather than relying on the phrase after hours.

Sources and further reading

Prepared by Inventor Underground. Examples are illustrative unless a source says otherwise. How these guides are prepared · Send a correction