On September 15, 2023, New York state enacted a new law, which drastically changes existing rules around employee inventions being assigned to employers and could potentially have ripple effects across the corporate legal landscape.
Before this legislative change, virtually all employee confidentiality and similar agreements contained an assignment of invention provision, according to Tannenbaum Helpern Syracuse & Hirschtritt LLP. Implemented as part of routine agreements, these provisions stipulated that all inventions created during an employee’s term of employment were either assigned to or owned by the company.
However, under the newly enacted law, part of these commonly used provisions are now unenforceable, and employees may have the rights to their inventions created during their employment, depending on certain conditions. The change has brought about an immediate effect and could impact businesses throughout the state and beyond.
Corporations and law firms alike are advised to review their existing confidentiality agreements and other relevant contracts with employees. In addition, a comprehensive examination of intellectual property policies and practices could prove beneficial in light of the freshly enacted law. Thereby ensuring that they are complying with the new rule while making sure that the protection and acquisition of intellectual assets are not jeopardized.
A thorough understanding of this new law and its implications is necessary for legal professionals, especially those working in the intellectual property arena. It’s highly recommended to stay connected with trusted legal updates and analysis as the interpretation of this law continues to evolve, posing both challenges and opportunities for company law and HR departments.
This new law could be indicative of a changing landscape in employee-rights laws throughout the United States, given New York’s influence as a legal trendsetter. Legal professionals and corporations worldwide should pay close attention to future developments in this area.