Who Owns IP Created By Employees?

When people think about intellectual property, they often picture inventors, artists, or entrepreneurs working independently to create something new. However, in reality, many valuable ideas, designs, and innovations are developed in the workplace, often by employees who are simply doing their jobs. If you are a business owner, or even an employee who has created something of value, you may wonder who actually owns that intellectual property. Read on and reach out to Lemler IP to speak with an Orleans Parish, Louisiana intellectual property lawyer about when employees may own IP and when they may not. Here are some of the questions you may have:

Do Employers Automatically Own Intellectual Property Created by Employees?

In many cases, yes, employers do own the intellectual property created by their employees, though there are important details that should not be overlooked. The rules differ heavily depending on whether the creation is a creative work (copyright) or a new invention (patent). Generally speaking, when an employee creates a creative work (like writing, software code, or design) within the scope of his or her employment, that creation is considered a “work made for hire,” which means the employer retains ownership rights.

That being said, there are several factors that will usually come into play when determining whether something truly falls within that scope. Some of the most important considerations include the following:

• Whether the employee created the work as part of his or her regular job duties
• Whether the work was completed during normal working hours
• Whether company tools, systems, or confidential information were used in the process
• Whether there is a written agreement that clearly defines ownership

For example, if an employee is hired to design marketing materials and creates a logo during the workday using company resources, that logo will most likely belong to the employer. However, as straightforward as that may sound, not every situation is quite so clear, and even small differences in how or when something is created can make a meaningful difference.

What Happens If There Is No Written Agreement in Place?

In a perfect world, every employer would have clear, detailed agreements in place that spell out exactly who owns what. Unfortunately, that is not always the case, and when there is no written agreement, things can become significantly more complicated. For instance, without a written agreement, an employee who invents a new process or product may actually retain ownership of the patent, while the employer only gets a limited “shop right” to use it. When disputes arise in these situations, courts will typically look at several different factors to determine ownership. These factors often include the following:

• The nature of the employee’s role and what he or she was hired to do
• When and where the intellectual property was created
• Whether the employee used company resources or worked independently
• The overall intent of both the employer and the employee

Of course, these situations are rarely black and white, and disagreements over ownership can quickly become both time-consuming and costly if they are addressed without a knowledgeable attorney. If you have questions about who owns IP, either created by you as an employee or by one of your employees as a business owner, please don’t hesitate to contact Lemler IP today.