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Mar 11 2025 15:00

Navigating Employer Ownership of Employee-Created IP

By Eddie Tarantino

The growing significance of intellectual property (IP) in today’s innovation-driven workplaces cannot be overstated. Understanding ownership rules for employee-created IP is crucial for avoiding disputes, safeguarding both employers and employees, and fostering healthy, professional relationships. This blog will help you navigate these complex issues.

Copyrights
In the realm of copyrights, the "work made for hire" doctrine is essential. It determines that employers own the copyrights for works created by employees within their job scope. Conversely, for independent contractors, the hiring parties own the copyright only if the work fits specific categories (e.g., commissioned art or audiovisual content) and a written agreement explicitly states it’s a "work made for hire." Establishing clear agreements with contractors is recommended to ensure appropriate copyright ownership.

Patents
Typically, inventors own the rights to their inventions in the U.S. However, employers may claim ownership if the employee was explicitly hired to invent or if there is a written agreement assigning invention rights to the employer. Including invention assignment clauses in employment contracts provides clarity and prevents disputes.

Moral Rights
Moral rights pertain to attribution and reputational protection, though they have limited application in the U.S., primarily for visual artists. These rights can be waived through contracts, offering greater flexibility in modifying or using creative works. Businesses should proactively address moral rights waivers in agreements to avoid future legal complexities.

Whether you’re safeguarding your business innovations or protecting your creative contributions, taking proactive steps today can help avoid future headaches. For personalized guidance, consulting an intellectual property attorney is advisable to ensure your rights are fully protected.

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