Provides that employment provisions that require an employee to assign certain inventions that are made on the employee's own time and which do not use the employer's equipment, supplies, facilities, or trade secret information shall be unenforceable.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5295
SPONSOR: Bores TITLE OF BILL:
An act to amend the labor law, in relation to inventions made by employ-
ees
PURPOSE OR GENERAL IDEA OF BILL:
Amends the labor law by adding a new section 203-f which specifies that
IP/an invention developed entirely on an employee's own time, without
:trade secrets, belongs to the employee.
SUMMARY OF PROVISIONS:
Section 1 amens the labor law to add a section 203-f. This amendment
renders any employment agreement unenforceable if it requires employees
to assign the rights to inventions developed using the employee's own
property and time. It specifies exemption for IP created with actual or
demonstrably anticipated research of the employer, or from work
performed by the employee in the course of their work for the employer.
JUSTIFICATION:
Overly broad contracts can rob employees of their intellectual property.
Research has shown that stronger IP protections for workers both protect
employees' and increase incentives for innovation. Moreover, economists
have linked better IP protection for employees to more efficient firms
and increased economic growth. The reasons are clear; these clauses
prevent employees from trying new ideas that can one day turn into new
businesses. Other employees leave for jurisdictions with these
protections, like California.
California implemented this protection in 2011, and it has not impeded
the growth of its tech secLor. This law brings overdue protections to
New Yorkers.
PRIOR LEGISLATIVE HISTORY:
This is a new bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
EFFECTIVE DATE:
This act shall take effect immediately.
