Q&As

Is the intellectual property (IP) clause used in the template employment contract suitable for use in a settlement agreement for a departing company director/employee in order to secure that all relevant IP remains the property of the employer?

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Published on LexisPSL on 25/10/2018

The following Employment Q&A provides comprehensive and up to date legal information covering:

  • Is the intellectual property (IP) clause used in the template employment contract suitable for use in a settlement agreement for a departing company director/employee in order to secure that all relevant IP remains the property of the employer?

Is the intellectual property (IP) clause used in the template employment contract suitable for use in a settlement agreement for a departing company director/employee in order to secure that all relevant IP remains the property of the employer?

The general position is that, unless there is a specific agreement to the contrary, an employer will own any intellectual property (IP) that an employee creates:

  1. in the course of the normal duties of their employment or when undertaking duties that have been specifically assigned to them

  2. as long as an invention might reasonably be expected to result from carrying out the duties

Where the nature of the employee's job puts them under a special obligation to further their employer's interests, the employer will own any IP the employee creates in the course of their duties at work, regardless of whether it might reasonably have been expected to result from the work. Where the employee is senior, the duty of fidelity means that they should disclose the existence of such material to the employer in order to allow it to benefit from these rights. Where the employee is a director, the fiduciary

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