Legal Question in Technology Law in Oregon

Ownership of intellectual property

I signed a contract with a firm just over 2 yrs ago entitling them to ownership of my intellectual properties. I was hired to design web sites. I was given one job just after signing the contract, and then nothing until almost 2 yrs later for which they didn't pay (they said they would pay and they are using what I developed--with a couple changes).

Over the last few months I've developed some software which I'm hoping to distribute. I have asked to be released from the contract (not mentioning the job for which I was not paid) and was told that the contract is invalid after 2 yrs (ending Oct 2002--though this isn't explicit in the contract). There was nothing in the contract regarding pay and the company retained the rights to contract termination.

Should I be concerned about ownership rights to the new software I'm developing (which has nothing to do with web site design)?


Asked on 10/24/02, 7:18 pm

2 Answers from Attorneys

Bruce Burdick Burdick Law Firm

Re: Ownership of intellectual property

Yes, you should be concerned. Employers are deemed the authors and copyright owners of works for hire. While you were an employee, even if there was a pay dispute, the employer and not you owned the websites you developed.

The 2 year period you say you heard about is probably the statutory limit on length of non-compete obligations in California. I am not a CA or OR lawyer and do not know the maximum term of non-compete clauses enforceable in CA or OR. I can refer you to copyright lawyers in Portland who can answer your question. I can help you with this to the extent it involves copyright law, since that is Federal law, but you need a local counsel to be sure you comply with local state laws and court procedures.

You will need to capture images of the offending website. Such images would be needed if a trial is pursued. You can go to the copyright portion of my website for links to copyright information. Call, write or (preferably) email me if you want my expert help and are willing to pay for expert help.

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Answered on 10/24/02, 11:30 pm
Michael Hermann Law Office of Michael Hermann

Re: Ownership of intellectual property

While Bruce is technically correct about Works for Hire, your contract with the company may not place you in the category of an employee. Did you have FICA withheld, where you eligible for benefits, etc. If not, you, in fact, may be an independent contractor, and the rights to IP are much different for Vendors dealing with IC's (Independent contractors).

I would formally terminate the relationship in writing, and send it certified mail with return receipt. Make sure you state the specific limitations that they have on rights to only the single work they paid you to produce. All other generated IP should be legally yours. Employers are often over-reaching in their greed/ownership demands and contract provisions. Also, the fact that you did not get paid puts them in breach of your contract, and some provisions may be voided.

Find a local contract/business lawyer who understands intellectual property law(copyright and trade secret law especially) and ask them to review you contract to be sure.

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Answered on 10/25/02, 12:12 pm


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