Legal Question in Business Law in California

Employer ends contract, but uses my designs without paying me

I have a signed contract with a Start-up to develop their logo and website. Contract example:

-Nov 30, I present prelim. design. Start-up CEO decides to use my services to complete the designs or not (''go or no-go'' decision). Pay me 1000 shares

-Dec 30, I present draft designs (contract defines ''draft'' term). Pay me 2000 shares

-Jan 30, I present final designs. Pay me 3000 shares

So on Nov 30, the CEO likes my designs and chooses to continue with the rest of the contract. On Dec 15, I give CEO draft designs (which are actually near ''final design'' quality). CEO claims he doesn't like my work and it's not even a draft; claims it's garbage. Terminates contract & willing to pay only 1000 shares for work up to Nov 30.

In Feb., he uses all my logos and designs AS IS. He has not even paid me my 1000 shares yet.

QUESTIONS:

1) Did he breach contract by ending the contract early, even after he decided to use my services on the ''go or no-go'' decision date? (no other termination clause in the contract we signed) How many shares am I entitled to?

2) Does he have rights to use my logos/designs for his business, esp. after he claimed my work was worthless to him? Do I have any legal right to say that he can't use my designs?


Asked on 2/22/07, 3:49 pm

2 Answers from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Employer ends contract, but uses my designs without paying me

My best guess is you can sue, but no lawyer can advise you without reading the whole contract. Where did you get this contract, anyway? Did you have your own attorney draft it or review it for you at the time it was signed? Have you sought to patent and/or copyright your designs?

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Answered on 2/22/07, 4:19 pm
Terry A. Nelson Nelson & Lawless

Re: Employer ends contract, but uses my designs without paying me

IF your written contract specifies that you retain the rights to the designs, then you have a claim on the designs. Employees generally don't. Otherwise, you have a contract claim for compensation and benefits due. Feel free to contact me if serious about pursuing them.

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Answered on 2/22/07, 6:23 pm


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