The state of New York has recently passed legislation which will impact the ability of employers to claim ownership over inventions developed by their employees. The newly enacted law, A. 5295, applies to all intellectual property created by employees. Effective immediately, Governor Hochul has signed into law a new definition of what is considered an employee’s personal invention which will no doubt significantly impact invention assignment agreements in the future.
The new law invalidates any clause within an employment agreement which requires employees to assign any rights to an invention developed entirely on their own time, without using their employer’s resources or equipment. This protection extends to cover any invention made without access to the employer’s supplies, facilities or trade secrets.
It is important for corporations and law firms alike to take note and reassess their invention assignment agreements. This move by New York could be seen as part of a broader trend in employment law, aiming to fairly negotiate the rights and protections of employees with regards to their intellectual property. As such, other states may follow suit with similar legislation. Employers, particularly in industries where innovation is a key factor, should review their current agreements to ensure they comply with the new law.
Looking ahead, the specific impact and practical implications of this legislation are yet to be seen. However, it is clear that it marks a significant shift in the dynamic between employers and their employees. With this new law, employees in New York now have a legally protected space to engage in independent invention, outside of their work obligations.