The proposed amendment to Section 2872 includes nonsubstantive changes to the notification provisions that employers must follow when including such assignment clauses in employment contracts. This bill reinforces the rights of employees to retain ownership of their inventions created independently, aligning with the overarching principle that employees should not unintentionally relinquish their intellectual property rights. Additionally, it clarifies the burden of proof in any disputes that arise concerning these rights, placing it on the employee who claims benefits under this provision.
Summary
Assembly Bill No. 1077, introduced by Assembly Member Calderon, aims to amend Section 2872 of the California Labor Code, focusing on the rights of employees regarding inventions they create. Under existing law, any invention developed by an employee on their own time typically belongs to the employee instead of the employer. However, if an employment contract includes a clause that requires the employee to assign their invention rights to their employer, the employer must provide written notification of this stipulation at the time the employment agreement is made.
Contention
Although there are no significant points of contention outlined in the legislative text, the bill inherently draws upon themes pertinent to the balance of power between employees and employers in intellectual property rights. Proponents are likely to argue that clear notice requirements protect employees from unfair contractual obligations, ensuring they are aware of their rights. Conversely, opponents might contend that such amendments could hinder employers' ability to secure essential innovations related to their business operations, potentially discouraging investment in projects that require employee involvement.