Ownership laws with regard to employee-created intellectual property can be simple or complicated, depending upon the type of intellectual property involved and the facts of the particular situation.

            Patent.  Under U.S. patent law, patent rights initially belong to the individual inventor(s), even if the inventor is an employee and the invention came about as a result of employment.      35 U.S.C. § 152.  If the invention is created by more than one person, the patent rights are owned by undivided joint ownership unless there is an agreement to the contrary.  Unless a separate basis for employer ownership exists, patent rights are owned by the employee inventors. 

            The most common basis for an employer to claim ownership is through a written assignment.  Employers desiring patent rights should require employees to sign employment agreements with an invention assignment clause as a condition of employment.  After an invention is created, employers should require employees to assign the particular invention in writing to the employer.  Absent a written assignment, employers can obtain patent rights in one of two ways.  If the employer can prove in court that the employee was hired to invent, then an implied assignment to the employer may arise.  Otherwise, if the invention was developed using the employer's resources and on the employer's time, the employer obtains a "shop right.”  A shop right is a right to make and use the invention without paying royalty, but is non-exclusive and unassignable.  That is, the shop right cannot be used by the employer to prevent others from making and using the invention. 

            Trademark.  Unless there is a written agreement to the contrary, the employer normally owns trademark and service mark rights associated with a product or service, regardless of employee involvement in the selection or use of the mark.

            Copyright.  Under the copyright law, copyright in a work initially vests in the author or authors of the work.  17 U.S.C § 201(a).  If the work is created by more than one author, the copyright rights are owned by undivided joint ownership, unless there is an agreement to the contrary.  However, in the case of a "work made for hire," the employer for whom the work was prepared is considered the author of the work.  A work that is prepared by an employee within the scope of his or her employment is considered a work made for hire.  17 U.S.C §201(b).  Certain other works specially ordered or commissioned may be considered works made for hire, but generally nonemployee authors own copyrights in their works until expressly assigned.

            Trade Secret.  Unless there is an agreement to the contrary, the employer normally owns the rights of trade secret.