Legal Question in Intellectual Property in Massachusetts

Re: Starting a business while employed

Your employer would have no rights in new original intellectual property unless: (i) there is a term in a written employment agreement that assigns your off-hours works to the employer, or (ii) you work on your side-job projects during the hours you are supposed to be working for your employer. Although it seems unlikely from your question, be sure to avoid using any customer lists (or other confidential information) of your employer to develop your own business' sales. Best also to avoid using any tools or other physical assets of your employer to design and/or produce your new products.

Best wishes,

LDWG

Re: Starting a business while employed

This may well depend in large measure on whether or not you (1) signed a non-compete, and/or non-disclosure, and/or confidentiality agreement in connection with your employment, if so, (2) the specific terms of any such agreement, and (3) analysis as to whether the agreement is legally enforceable to prevent you from accomplishing what you want to accomplish. Situations like the one you describe commonly involve some form of such agreement(s), which would typically apply here. But your shop is small, so maybe there is nothing actually in place.

When in doubt, act in good faith at all times. In other words, if it feels wrong, don't do it. Whenever possible act in every way to protect the employer's rights and interests until you have officially severed the relationship, and thereafter continue to do so whenever possible and not adverse to your own.

These situations usually require the making of very important decisions, regarding highly sensitive matters of substantial value, in a compressed period of time. Those decisions are often the subject of ensuing litigation. Therefore, it is highly advisable that you seek assistance of counsel to help walk you through this very risky process. A small investment in retaining counsel up front can often save you an enormous investment later on, if you later learn you made an innocent misstep while trying to negotiate these very dangerous grounds by yourself.