What is Intellectual Property Assignment?

Definition

An intellectual property assignment clause transfers ownership of IP you create during the engagement to the other party. In employment and freelance contracts, this clause determines who owns the code, designs, writing, inventions, and other creative work produced under the agreement. Blanket IP assignment clauses are especially dangerous because they can claim ownership of everything you create, including personal projects, side work, and ideas developed outside business hours or using your own equipment. California Labor Code Section 2870 limits blanket assignments for employees, but many other states have no such protection. For example, if your employment contract assigns 'all inventions conceived during the term of employment' without an exclusion for personal projects, a mobile app you build on weekends using your own laptop could legally belong to your employer. Watch for assignments that cover work created 'at any time' rather than 'within the scope of engagement,' and always negotiate to exclude pre-existing IP and personal projects created on your own time.

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