Overreaching Employment Agreements are Unenforceable
While many employers fail to have their employees sign employment agreements, other employers force their employees to sign overreaching agreements that would purport to give the employer rights to any invention created by an employee, whether or not it relates to the employment. Such agreements, however, are generally unenforceable under Utah law.
The Employment Inventions Act (U.C.A. 34-39-1 et seq.) renders unenforceable employment agreement provisions that seek to give the employer rights in inventions that are not conceived, developed or reduced to practice within the scope of the employee's employment, made on the employer's time or with the aid of the employer's property, etc. if the invention is not related to the industry or trade of the employer.
While employment agreements that are a condition of obtaining or keeping employment are so limited, an employer may contract with the employee for broader rights to the employee's inventions if separate consideration is given.
If there is any doubt as to who will own your inventions, it is best to resolve them up front. As with most legal matters, an ounce of prevention is worth many thousands of dollars of cure.
The Employment Inventions Act (U.C.A. 34-39-1 et seq.) renders unenforceable employment agreement provisions that seek to give the employer rights in inventions that are not conceived, developed or reduced to practice within the scope of the employee's employment, made on the employer's time or with the aid of the employer's property, etc. if the invention is not related to the industry or trade of the employer.
While employment agreements that are a condition of obtaining or keeping employment are so limited, an employer may contract with the employee for broader rights to the employee's inventions if separate consideration is given.
If there is any doubt as to who will own your inventions, it is best to resolve them up front. As with most legal matters, an ounce of prevention is worth many thousands of dollars of cure.
The question also becomes whether the employee (who may no longer have a job) can afford to take on the big employer without a sure knowledge of the worth of his invention.
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I always thought it was funny to see employers get prospective employees to sign "I'll stay with you for at least a year" in high turnover, college towns (read: Provo). I always knew they were bunk.
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