Los Angeles, CA asked in Employment Law and Intellectual Property for California

Q: Can you work on a software idea in the same space as the software your company sells and still retain full ownership?

I'm considering developing a software plugin that operates in the same space as my employer's software but has distinct functions. It would be part of a pipeline step for deployment or pull requests and could run before or after my employer's software, offering different functionality. My employer's software interacts with other plugins that add value without competing. My plugin would be a separate step and wouldn't use any of the company's IP. I plan to work on this outside work hours and without using company resources, aiming to retain full ownership. My employment agreement in California includes clauses on intellectual property and a non-compete. What steps should I take to secure my rights to the project and avoid compromising my agreements with my employer?

2 Lawyer Answers
James L. Arrasmith
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Answered
  • Sacramento, CA
  • Licensed in California

A: In California, the law generally favors employees in disputes over intellectual property, especially if the work is created on your own time without using company resources. However, specific employment agreements and non-compete clauses could impact your situation. You should carefully review your employment contract, paying close attention to any clauses related to intellectual property and non-compete terms.

It would be wise to document all work you do on your project, ensuring that it is done outside of work hours and without utilizing any resources or intellectual property belonging to your employer. This includes physical resources, like company equipment, and intangible assets, like proprietary information or software. Keeping detailed records can help establish that your project was developed independently.

Consult with an attorney who understands employment and intellectual property law in California. They can provide guidance specific to your situation, help you understand your contractual obligations, and assist in navigating potential legal pitfalls. Transparency with your employer might also be beneficial, but you should seek legal advice before discussing your project with them.

Alan Harrison agrees with this answer

1 user found this answer helpful

Neil Pedersen
Neil Pedersen
Answered
  • Westminster, CA
  • Licensed in California

A: The terms of any agreements you have signed with your present employer would be key to the answer to this question, and you should not proceed based on short answers provided on the internet from attorneys who are not allowed to see the whole picture. If you think your plug in will have substantial value it would be foolish to proceed without informed, specific, confidential advice from an IP attorney.

Good luck to you.

Alan Harrison agrees with this answer

1 user found this answer helpful

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