Question 1

What does California Labor Code § 2870 say?

Accepted Answer

California Labor Code § 2870 states: An employee shall not assign, or be required to assign, any invention that is developed entirely on the employee's own time without using the employer's equipment, supplies, facilities, or trade secret information, if the invention is: (1) developed entirely outside the scope of employment, and (2) does not relate to the employer's business or actual/demonstrably anticipated R&D. In plain English: your personal projects are yours, even if you signed an IP assignment clause.

Question 2

What about work inventions? Does the company own everything I create at work?

Accepted Answer

Yes. Inventions created during work hours, using company equipment, for company purposes, or related to company business are company property. California law recognizes this. The balance is: company owns work-related IP, employee owns personal/side-project IP. This is fair and protects both sides.

Question 3

If my contract has a broad IP assignment clause, does it override California law?

Accepted Answer

No. California law CANNOT be overridden by contract. Even if your contract says "we own everything you create," California § 2870 still protects your outside work. Courts have struck down overly broad IP clauses that violate § 2870. The statute is mandatory and employees cannot waive it.

Question 4

What if my company says I have to disclose side projects? Do I have to?

Accepted Answer

You do NOT have to disclose side projects that are: (1) created outside work hours, (2) not using company equipment/resources, (3) not related to company business. If a company requires blanket disclosure of ALL inventions, that's likely overreach that violates § 2870. However, you should disclose if there's ANY connection to company work.

Question 5

How should I negotiate IP assignment in California?

Accepted Answer

Ask for explicit carve-out language: "Company owns inventions created during work hours using company resources, related to company business. Employee retains ownership of inventions created outside work hours using personal resources, unrelated to company business." This matches California law. If they refuse, you have § 2870 protection anyway. Reference the statute if they push back.

IP Assignment in California: What You Actually Own

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