New York Limits Employer Rights to Employee Inventions

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.