california labor code section 2870
Definition
This California law protects employees by limiting what inventions a company can legally claim ownership over. Specifically, it says that if an employee invents something entirely on their own time, using their own resources, and the invention has nothing to do with the company's current or anticipated business, then the company cannot take ownership of that invention even if the employee signed an agreement saying otherwise.
Example
If one of your graphic designers spends her weekends building a gardening app that has nothing to do with your marketing firm, Section 2870 means she owns that app and your employment contract cannot override that right.
Watch Out
Many employers include overly broad invention assignment clauses in employment contracts that technically violate this law, so you need to make sure your contracts are narrowly written or you could face legal challenges from employees over ownership disputes.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.