Startups Stack Exchange Archive

If I’m working at a startup, do they have intellectual property rights to the stuff I do in my spare time?

With so many developers working on side projects and participating in events like hack-a-thons what happens to the IP of the things they build on their own time? Can I take my side project and launch a company based on it as a startup later?

Answer 1882

This is not a simple cut and dry situation. Some factors to consider:

  1. Do you have a contract? If so, does it specify their rights and ownership?
    Even though it might not be enforceable, it at least sets the tone for what they feel they have a right too. Most companies will provide you with a process to list your side projects and work so that they are clearly aware of what you are working on. You don’t have to disclose details, but you should list something along the lines of “A mobile RPG game that is cross platform”
  2. Are you using ANY of their resources. This isn’t just equipment and time, but it access to intellectual property, partnerships with other companies, etc
  3. There is a balance between the skills you brought to the table and the things you learned on the job. Especially if they paid for you to get training.
  4. Sometimes it just comes down to where you live. Different states and countries come down on this issue differently. Some are very much pro-employee and some are very pro-employer.
  5. Despite what they may or may not have legal authority to claim ownership too, what are they willing to do about it? It may be completely obvious that they have no claim, but they may pursue simply to punish you. On the other side, they may have a clear case of ownership but they may not be interested in pursuing it simply because their focus is on their business not yours.

In general, I’ve found it good to be transparent and up front with your employer. If you’re working for someone who has an issue with a side project, you have to wonder how they are going to treat you when it comes to discussing equity, profit sharing, etc. A lot of times it’s just a matter of expectation management. If you surprise your boss one day by saying you’re quitting to pursue your own project they might pursue ownership simply to maintain control of you and your time.

Answer 1873

As long as it is not related to what your current employer is doing and not competing with him there should not be a problem.

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