Employee Proprietary Information And Inventions Agreement for the United States

Employee Proprietary Information And Inventions Agreement Template for United States

An Employee Proprietary Information And Inventions Agreement (PIIA) is a legal contract used in the United States that establishes rights and obligations regarding intellectual property, confidential information, and inventions created during employment. The agreement ensures that employers maintain ownership of intellectual property created by employees during their employment while protecting trade secrets and other confidential information. It complies with federal and state-specific requirements, including particular provisions required by states like California under Labor Code Section 2870.

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What is a Employee Proprietary Information And Inventions Agreement?

The Employee Proprietary Information And Inventions Agreement is essential for companies operating in the United States who need to protect their intellectual property and confidential information. This agreement should be implemented at the start of employment relationships, particularly for roles involving access to sensitive information or creation of intellectual property. The PIIA establishes clear ownership of employee-created inventions, protects trade secrets, and ensures compliance with both federal laws (such as the Trade Secrets Act) and state-specific requirements. It's particularly crucial for technology companies and other innovation-driven organizations.

What sections should be included in a Employee Proprietary Information And Inventions Agreement?

1. Parties: Identifies the employer and employee entering into the agreement

2. Background: Establishes the context of the agreement and the employment relationship

3. Definitions: Defines key terms used throughout the agreement including 'Proprietary Information', 'Inventions', and 'Intellectual Property Rights'

4. Confidentiality Obligations: Details the employee's obligations regarding confidential information

5. Ownership of Inventions: Establishes employer's rights to employee inventions created during employment

6. Assignment of Rights: Formal assignment of intellectual property rights to employer

7. Return of Materials: Requirements for returning company property upon termination

8. Term and Termination: Duration of obligations and what happens upon termination

What sections are optional to include in a Employee Proprietary Information And Inventions Agreement?

1. Non-Competition: Restrictions on competitive activities (only included where permitted by state law and appropriate for role)

2. Non-Solicitation: Restrictions on soliciting employees or customers (recommended for client-facing or management roles)

3. Prior Inventions: Exclusion of pre-existing inventions when employee has existing IP they wish to exclude

4. Third Party Information: Provisions regarding handling of third party confidential information when employee may have access to such information

What schedules should be included in a Employee Proprietary Information And Inventions Agreement?

1. Schedule A - Prior Inventions: List of employee's pre-existing inventions excluded from agreement

2. Schedule B - State Law Notifications: Required state-specific notices regarding invention assignment

3. Schedule C - Termination Certificate: Form to be signed upon termination confirming compliance

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Genie AI

Cost

Free to use
Industries

Federal Trade Secrets Act: Federal legislation that provides a legal framework for protecting trade secrets and confidential business information at the federal level

Defend Trade Secrets Act (DTSA): Federal law that creates a uniform federal standard for trade secret protection and allows companies to file trade secret cases directly in federal court

Patent Act: Federal legislation governing patent rights and inventions, relevant for provisions regarding employee inventions and assignment of patent rights

Copyright Act: Federal law protecting original works of authorship, important for provisions regarding works created during employment

National Labor Relations Act (NLRA): Federal law protecting employees' rights to organize and engage in collective bargaining, which may affect confidentiality provisions

WARN Act: Federal legislation requiring employers to provide advance notification of significant employment actions, which may interact with confidentiality obligations

State Trade Secret Laws: State-specific legislation protecting trade secrets, which may provide additional or different protections than federal law

State Non-Compete Laws: State-specific regulations governing the enforceability and scope of non-compete agreements, varying significantly by jurisdiction

State Invention Assignment Laws: State laws governing the assignment of employee inventions, including limitations and notice requirements (e.g., California Labor Code Section 2870)

State Labor Codes: Comprehensive state-level employment regulations that may affect various aspects of proprietary information agreements

State Employee Rights Laws: State-specific legislation protecting employee rights and limiting employer restrictions on employee activities

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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