[CA] Does independently built software belong to the employee or the employer?

CA Employment

Legal Eagle

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Here's a detailed guide to help you navigate the IP ownership concerns regarding your AI project.

Review your employment agreement. Start by carefully examining any employment agreements or onboarding documents you signed when you joined your company. Look for clauses related to inventions, intellectual property, or work for hire. These clauses might state that any inventions related to your work, even if developed on your own time, could be claimed by your employer.
Understand California Labor Code Section 2870. This section is crucial, as it provides that an employer cannot claim rights to an invention developed entirely on your own time, without using the employer's equipment, supplies, facilities, or trade secret information, unless the invention relates to the employer's business or anticipated research or development. This means that if your project is unrelated to your employer's business, you might have a strong case for ownership. Separately, because your project is software, it's worth noting that copyright ownership follows its own rule: under 17 U.S.C. § 201(b), a work created within the scope of employment belongs to the employer as a "work made for hire," while a project genuinely outside that scope, like one built on your own time and equipment, remains yours.
Document your work thoroughly. Keep detailed records of your development process, including dates, resources used, and the nature of the work. This documentation can be crucial in demonstrating that your project was developed independently and without the use of company resources.
Consult an IP attorney. Given the complexity and potential stakes involved, consulting with an attorney who specializes in intellectual property law is advisable.
Be cautious with company resources. Avoid discussing your project with colleagues or using any company resources, as this could potentially blur the lines of ownership. Keeping your project separate from your work responsibilities is key.
Consider a declaration of ownership. You may want to draft a formal declaration of ownership for your project, clearly stating that it was developed independently and without the use of company resources. This can serve as an additional layer of protection.

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Hello, I live and work in California and have some questions about IP ownership regarding what I am building with AI on my own, and my job's potential ownership of that IP based on the onboarding documents I signed three years ago.

Lexi, Chatbot

I understand that navigating IP ownership can be quite complex, especially with AI involved. Can you tell me if you are currently employed by a company that has specific policies regarding intellectual property?

I work for a general contractor construction company in California as a construction safety professional. I am building, on my own time and on my own equipment, a SaaS/RAG application that uses Cal/OSHA public domain regulations along with my field expertise.

Lexi, Chatbot

Have you reviewed the onboarding documents you signed to identify any clauses related to IP ownership?

It's just a boilerplate document, nothing outside of the normal legal language.

Lexi, Chatbot

Is there anything else the lawyer should know before I connect you? Rest assured, they'll be able to help with your IP ownership concerns.

I am still in the development phase of my own application, which I started before my company asked me to help build something along the lines of a safety hotline utilizing AI. I have not said anything about what I am building on my own, and before I release mine, I want to make sure there isn't any possibility of them claiming ownership of what I built.

Legal Eagle

Hey there! Welcome to our service. I'm Legal Eagle, an attorney with many years of experience, and I'm here to help you. I understand you're concerned about IP ownership regarding your AI project and your job's potential claim on it. Is that correct?

Yes.

Legal Eagle

Based on your situation, there are several legal arguments and considerations in California that could potentially support your case. California Labor Code Section 2870 states that an employer cannot claim rights to an invention developed entirely on an employee's own time, without using the employer's equipment, supplies, facilities, or trade secret information, unless the invention relates to the employer's business or actual or demonstrably anticipated research or development. Employment agreements often contain clauses related to inventions, intellectual property, or work for hire. These clauses may stipulate that any inventions or creations related to your work, even if developed on your own time, could be claimed by your employer. Documenting your work, including dates, resources used, and the nature of the work, can be crucial in demonstrating that your project was developed independently. Let me know if you have any questions or clarifications, if not I'll move forward with guidance.

Due to my job as a safety professional, I default to documentation, so this project has timestamped logs, and everything is timestamped back one and a half months, which is how long I have been working on it.

Legal Eagle

Here's a detailed guide to help you navigate the IP ownership concerns regarding your AI project.

Review your employment agreement. Start by carefully examining any employment agreements or onboarding documents you signed when you joined your company. Look for clauses related to inventions, intellectual property, or work for hire. These clauses might state that any inventions related to your work, even if developed on your own time, could be claimed by your employer.
Understand California Labor Code Section 2870. This section is crucial, as it provides that an employer cannot claim rights to an invention developed entirely on your own time, without using the employer's equipment, supplies, facilities, or trade secret information, unless the invention relates to the employer's business or anticipated research or development. This means that if your project is unrelated to your employer's business, you might have a strong case for ownership. Separately, because your project is software, it's worth noting that copyright ownership follows its own rule: under 17 U.S.C. § 201(b), a work created within the scope of employment belongs to the employer as a "work made for hire," while a project genuinely outside that scope, like one built on your own time and equipment, remains yours.
Document your work thoroughly. Keep detailed records of your development process, including dates, resources used, and the nature of the work. This documentation can be crucial in demonstrating that your project was developed independently and without the use of company resources.
Consult an IP attorney. Given the complexity and potential stakes involved, consulting with an attorney who specializes in intellectual property law is advisable.
Be cautious with company resources. Avoid discussing your project with colleagues or using any company resources, as this could potentially blur the lines of ownership. Keeping your project separate from your work responsibilities is key.
Consider a declaration of ownership. You may want to draft a formal declaration of ownership for your project, clearly stating that it was developed independently and without the use of company resources. This can serve as an additional layer of protection.

1. Even if it isn't directly related to my work, which is done in person, this is a SaaS/RAG program referencing OSHA regulations. 2. This has been entirely on my own time and on my own machine, and I have been very meticulous in making sure there is no crossover. 3. I have been. 4. I have reached out to a handful of IP attorneys and have not heard back from them regarding this yet. 5. I will continue to be meticulous so that no lines are blurred in this regard. 6. What does a declaration of ownership look like?

Legal Eagle

A declaration of ownership is a document that clearly states that you are the sole creator and owner of the project. It should include details such as the project's name, a description of the work, the date you started, and a statement that it was developed independently without using any company resources. You can also include your meticulous documentation as evidence. It's a good idea to have this document reviewed by an IP attorney to ensure it covers all necessary aspects. Let me know if you need more details or have other questions!

Do you have any recommendation for IP attorneys in the Irvine or Southern California area?

Legal Eagle

Understanding a declaration of ownership. A declaration of ownership is a formal document that asserts your sole ownership of the project. It should include the project's name, a detailed description, the start date, and a statement confirming it was developed independently without using any company resources. Including your meticulous documentation as evidence strengthens this declaration. Consulting an IP attorney to review this document ensures it covers all necessary aspects.

Finding an IP attorney in Southern California. Since you're looking for IP attorneys in the Irvine or Southern California area, I recommend checking local legal directories or bar associations. Websites like Avvo or the California State Bar's website can help you find qualified attorneys. You might also consider reaching out to local law schools, as they often have clinics or can recommend experienced professionals.

Steps to protect your IP: Review employment agreements, document everything, consult an attorney, avoid using company resources, and draft a declaration of ownership.

Thank you.

Legal Eagle

Glad I could help!

Legal Eagle

135,460 satisfied customers

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