New York has enacted legislation (Assembly Bill A5295), which limits an employer's rights to an employee's invention. Assembly Bill A5295 is effective immediately.
The Details
Under the law, a provision in an employment agreement that requires an employee to assign (or offer to assign) any rights of their invention to their employer is unenforceable if the employee:
- Developed the invention entirely on their own time; and
- Did not use their employer's equipment, supplies, facilities or trade secret information.
Exceptions
The law does not apply to inventions that:
- Result from any work performed by the employee for the employer; or
- Relate at the time of conception (or when brought to physical form) to the employer's business, or actual or demonstrably anticipated employer research or development.
Next Steps
- Consult legal counsel to discuss the impact of Assembly Bill A5295 on your business.
- Train supervisors on the changes under the law.