Companies that wish to avoid labour disputes and guarantee intellectual property rights over their employees` inventions should ensure that all employees have signed confidentiality and invention assignment agreements. These agreements are often referred to as confidential information agreements and assignment inventions or “CIIAAs” (sometimes referred to as information and invention assignment agreements or “PIIAAs”). You can create your own agreement on Cooley GO Docs: form of confidential information agreement and inventions for employees For example, a former employee can, during his employment, obtain valuable information about the activities of the company and a company competing with what he or she learned a day or two after the termination of his or her employment contract, A properly developed invention transfer agreement may prevent a staff member from doing so. The ciaa`s confidential portion protects, as the name suggests, your company`s confidential information. Even if you refer to employee confidentiality obligations in your policies, manual, employment contract or letter of offer, a staff trust agreement should be established as a separate and stand-alone document. Among the reasons for a separate agreement are: 1) the protection of your confidential information as a trade secret; 2) to remind its employees of their confidentiality obligations; and 3) Provide a confidentiality agreement or CIAA as a stand-alone document to your investors in order to keep your employment contracts confidential. This is especially important when it comes to the founders of the company. If the founders are creating a company for the first time, it is unlikely that they have signed agreements with the company. An invention assignment agreement ensures that all work done by the founders on behalf of the company is the property of the company and not of its individual founder. When a founder is hired as an employee, it is essential that he executes an invention order contract.
If you`re looking for investors, they`ll want to know that it`s the company that has the job, not the founders individually. CIIAAs should also prevent employees from participating in your company`s competing business activities. That prohibition should be contrary at least for the duration of the worker`s relationship with the undertaking. In some cases, you want the non-competition clause to extend by one year or more beyond the duration of the business (well beyond one year, inappropriate terms may be deemed unenforceable). Make sure that alliances not to compete are not applicable everywhere – for example, they are not applicable in California, except in very well-defined circumstances. State law regulates these agreements and States consider non-competition in different ways. As a result, consult the advisor to ensure that you are using the corresponding agreement for each of your employees. In addition to confidentiality agreements, companies use assignment agreements in inventive ways to protect their company`s confidential information. A divestiture agreement ensures that the factory created by an employee is owned by your company. Many emerging companies are wondering to what extent they should vary their CIIAAs depending on the role of the new employee.
For example, a non-compete clause is probably more important for a CTO than for a new secretary.. . . .