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> Being an employee of a high tech company whose product is intellectual means that you have decided that you want to sell your intellectual output, and maybe thatโs OK, and maybe itโs not, but itโs a free choice.
Let's clarify that phrase, "sell your intellectual output". Keep in mind that earlier in the article we discovered that "during work hours" or "related to your work" are not limits on its scope. What are the limits? The evident conclusion is that there are none. You are selling all of your intellectual output.
A situation where every idea you come up with, everything you think, every last shred of creativity is owned by someone else is one of the most profoundly dystopian things I can imagine. But this isn't a sci-fi story, this is standard business practice.
Selling all your intellectual output is selling yourself, and I think it's unconscionable. If you don't even own your own thoughts, what do you have left?
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> the only way to gain independence is to be independent. Being an employee of a high tech company whose product is intellectual means that you have decided that you want to sell your intellectual output, and maybe thatโs OK, and maybe itโs not, but itโs a free choice.
I was hoping for a closing argument about how thoughtful employers could accommodate their legal requirements while also respecting independent employee creations.
Instead he seems to just be saying that employees that want to keep their side projects should just quit.
Reading that might give me pause about taking a position at Fog Creek.
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> ...
> So before you hire this developer, you agree, โhey listen, I know that inventing happens all the time, and itโs impossible to prove whether you invented something while you were sitting in the chair I supplied in the cubicle I supplied or not. I donโt just want to buy your 9:00-5:00 inventions. I want them all, and Iโm going to pay you a nice salary to get them all,โ and she agrees to that, so now you want to sign something that says that all her inventions belong to the company for as long as she is employed by the company.
Wait, what? Wouldn't the fix for this just to say, "You transfer the rights to any games you give us" (or whatever the legal wording for that is)?
It seems incredibly odd to go from "you gave us a game but kept the IP" to "we own all IP of games you make".
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If you, the employee, are working for an employer you respect, and vice versa, YOU CAN HAVE A CONVERSATION!
If your day job is, say, maintaining high-capacity forum software in dotnet, and you have this hankering to develop, say, a WordPress plugin to show the time of sunrise, you can talk about it.
If you respect your boss and she respects you, the conversation will be fruitful. She may say, "please don't do that," and you'll understand why not. She may say "go ahead."
If you DON'T respect your boss, there's lots of advice here about how to proceed. But why not start out assuming mutual respect?
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My current client and I have talked about going "full-time" and I've even discussed it with their legal department. The problem is they have a culture of standard employment contracts and are extremely uncomfortable with the idea of someone having a non-standard employment contract. They said it was "possible", but I'd have to list the projects to be excluded from their interests.
That precludes any opportunity to pursue any new ideas I would come up with.
That's just a flat out non-starter for me. I come up with new ideas all the time and I pursue or network those ideas all the time.
This is definitely a problem with my client and other large corporations. They understand that entrepreneurship is a growing interest of my many technical people and it has become a barrier to attracting those types of people. Something every corporation needs...people who think outside the box.
Of course the primary issue is leverage. If you need the company/paycheck and don't have enough of a background to command a change in the standard employment contract, then you have to sign away all rights. Or you can just decide to be a contractor and explicitly state (where it's necessary), that the work you're assigning rights to is in some amendment and is listed in detail. All other creations/works are yours.
Or you have a strong background with proven results and the corporation is interested in your services enough so that they will work with you on a non-standard employment contract.
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I mentioned I was helping a friend on a short film. I was just showing up on set and possibly doing technical stuff on editing and mixing. I asked, "It's not my project, I'm just helping out. What would you like to see from the project?" "Everything" "Really? We haven't started shooting. Does that mean the script? Raw footage? The final edit?" "Everything" I don't think they actually knew anything at all about what I was talking about (even though it was multi-gigabytes of information) and they handed it all over to a co-worker.
I think the lesson is to think about where they're coming from. The lawyer is paid to cover the company's ass and they may not even have the expertise to make the right call, so they'll error on the side of being safe.
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Surprised nobody has mentioned the most essential thing to know about regarding this stuff in California. The site is down at the moment, but the link is: http://www.leginfo.ca.gov/cgi-bin/displaycode?section=lab&gr...
CA 2870 is attached to any such agreement you sign in California, and protects independent invention. You should read it. This law forms the legal basis for innovation in Silicon Valley.
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This really does change my opinion of both Joel and FogCreek, and certainly for the worse. I wonder, did FogCreek actually prevent Ted Unangst from contributing to OpenBSD as a side project while he was with them? If so, that's horrible. And how much have FogCreek, StackOverflow, and other companies that seek to greedily arrogate the entire creative output of their employees benefited from open source software began and continued as the very side projects this blog post cautions against? Utterly hypocritical.
I second the call of another poster: we need a professional association (union) of the kind that lawyers, doctors, and dentists have. IEEE and ACM could easily function as such, and in fact, they already provide many of the same practice standardization and continuing education functions that other professional associations do. All that's missing is the rent-seeking behavior to ensure we earn what we're worth and keep employers like Joel honest.
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Here is a previous discussion on HN: https://news.ycombinator.com/item?id=2208056
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You have to expect people leaving you, because the reasons they join a bigger company is much different than a smaller one and it's quite shortsighted as a CEO of a company of the size of fog creek to think like that.
Luckily there are other companies doing great encouraging side projects too.
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How does this factor into bring your own device (BYOD)? At what point is it your employers equipment, and at what point is it yours? I think BYOD is a terrible idea for several reasons (usually leveraged as a cost-saving measure, can't 100% verify that all company data is wiped at end of employment, etc), but this seems like it muddles the whole thing further. If you only own the devices that you use to work, does everything belong to your employer and how can you draw a line?
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Employer contracts are concerned that you are attempting to take company proprietary information and repackage it on your own time for sale. This sort of behavior clearly falls into 'inventions'.
However, most of the contracts I've seen have a clause which states that the invention must be related to the business of the company. If you work in the games industry and make games on your own time for sale, your employer might take issue with that.
If you work at a games company and run a real estate business on the side, who cares? Similarly, if you work at a games company and write real estate software, they're still not likely to care.
The issue arises:
- where the customer you are getting money from is the same customer (potential customer) of your current employer.
- where the IP in your side project has potential business value to your current employer.
If in doubt, you simply tell your employer up front and get it in writing (email) that it's o.k. I've done this in the past, and the HR department usually will defer the decision to your Manager, who has to make a determination if the work you're doing has potential cross-cutting business concerns. The bigger issue (from an employer standpoint) is that you are not devoting 100% effort to your current employer.
So as long as:
- you make it clear that there are no customer overlaps
- there is no IP that the company would ever be interested in
- that this is done own your own time (and off-premises)
No one should care what you do in your own time.
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The two times, I asked to change it. First time I asked to mention that I keep ownership of my opensource projects, since it was what I was doing mainly with my free time.
The second time was less obvious, because I was cofounder/CTO, and I didn't really have a distinction between my "work for company" time and "work outside" time. I also was working on a side project meant to become a business. I took it that they wanted me to transfer IP to the company, but didn't want to let the ownership of my other project go as well.
So what I asked was to change text to say that company had ownership for all my non opensource code that was effectively used by the company. This gave them ownership of everything I was writing for them while at home, while still securing my ownership on my totally unrelated project (without any ambiguity possible).
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Maybe the New York Times tells it best:
http://www.nytimes.com/1997/09/08/business/an-idea-not-yet-b...
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Contracts can say almost anything. You can agree to grant the company a liberal license to anything you deliver to the company or incorporate into any product of the company. You can make a similarly protective agreement on the patent front.
There, now you own what you do on your own time and the company isn't at risk of a lawsuit from you.
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It's not ideal from an employee's perspective, but it's at least less unpredictable.
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I advise people not to work for Joel or his companies. This is developer-hostile advice from someone who should know better. You don't want to work for a guy like this or his companies.
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My old employer was one I felt that I could trust to not abuse its power.
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In some countries, it's quite different. In Russia, you own anything you made as long as
* you don't touch it while you're on duty
* you don't use the employer's equipment
Obviously, you still can't use any information classified as 'trade secrets' at your current job because it's covered under another law.
You can even work in a directly competing company (or start one) WHILE being employed because job contract can't legally regulate your off-duty time and you can have unlimited number of side-jobs, as long as it's under 20-hours-a-week, in addition to your current full-time job. You don't even have to notify your full-time employer about it. The 'non compete clause' doesn't work. And your full-time employer can't even fire you (legally) just because you work in/own a competing company, as long as you follow all the regulations.
Even the 'I donโt just want to buy your 9:00-5:00 inventions. I want them all' in the job contract can't work if I understand the Russian laws correctly.
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However, the important issue here is the opportunity companies are missing by not offering any significant profit sharing from disclosed inventions. If I submit IP to my company and it gets patented, I get a $500 check. That's idiitic because it dissincentivises significant innovation, but it's unfortunately commonplace.
To solve the dilema, companies simply need to get their greedy heads out of their rears and offer inventors a profit share percentage such as 10%. If they don't accept, the inventor should be able to do with the invention as they please, which includes selling or licensing.
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I remember that in Canada, the full time employee contract mentions something like, 40 hours per week, and also explicitly mention if you use company's property or equipments to produce some, or you produce some at company venue, then all copyright belongs to the company.
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She'll point out any clauses (not just IP clauses) designed or phrased in such a way as to be unfair in the employer's favor, and will suggest alternative language that protects both them and me.
I have yet to encounter an employer who wouldn't accept a few small changes to an overly broad IP clause, and print and sign a fresh copy of the contract with the changes incorporated.
My current employer took very little convincing to accept the idea that they only wanted the IP created for them, not all IP created during the period of my employment.
After all, as I pointed out, they have no more interest in owning the code or design of my block association's website than I have in giving it to them. And it's unreasonable to expect me to cease to be its maintainer just because of a job switch from a fashion startup to an entertainment industry startup. As long as I don't work on it during work hours or using a work computer/internet/etc, why should they care what I do with my evenings and weekends?
So they accepted a modification. Of course, we might have trouble if I tried to compete with them in some way. But even if in my spare time I create a tool or library that eventually ends up being useful in building their own software, I retain the IP to that library. I might not get away with licensing something like that to them for a fee (good faith cuts both ways), but if it's already BSD licensed anyway, they can add it as a dependency and everyone's happy.
And if I want to be paid for contract work for an unrelated startup on weekends, well, that wasn't the use case I used to convince them. But the contract modifications give me the right to do so without turning the IP over to them. And again, if it's not competing, why should they care?
TLDR: Read and understand contracts before you sign them. Get help understanding if you need it. Don't sign something you don't want to be held to the letter of. Sometimes employers are flexible.
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Also, it would be cool if there was some widely available standard 'developer friendly' contract (or even addendum to a contract) that software engineers could table when negotiating a new job. It should be fair to the employer too of course, but it would give less experienced developers or those in a weaker negotiating position for whatever reason something well thought out to use.
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I was working on a personal project once and it seemed to make sense to join it with another product from another company. We collaborated on the combination design, but never moved forward with it. I never joined the company and I was never compensated in any way. No joint product or code or anything was ever produced.
However, the CEO of that company threatened me with legal action when I joined a different company to implement what I was working on. He sent a cease and desist to me and the company. I had to retain a lawyer to fend that off. Luckily, the accusations were so ridiculous it wasn't hard.
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That is NOT protection.
Odds are your boss isn't authorized to say that. And further, it's not in writing so it's your word against theirs.
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This situation has taught me 2 things: 1 - most developers don't care, those that do know about it, don't think it's a big deal. 2 - because it has basically become industry standard developers assume it's OK and that no one would sue them.
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This means that just about all side projects are permitted, but must be identified in writing in advance, and gives the employer the chance to decline to approve, and in that circumstance then the employee can leave if they want.
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Companies taking advantage of ambiguities in the law or making employees live in fear of innovating on their own terms is wage slavery in its illest form.
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I mean, imagine for instance that you simply had a band and tried to sell a few songs. And that you were an engineer. At some point in history, it would have made perfect sense to do this at Apple, with no overlap at all. Heck, I remember the ongoing lawsuits over the years from Apple Music just because of the name of Apple Computer at the time, and I think at one point they reached an agreement simply because Apple Computer was not going to be in the music business. And at the time, this seemed like a no-brainer, crazy to imagine Apple doing anything in music. And then, oops. So no, on a company-wide basis, no side project is really โsafeโ; companies can and do enter new lines of business, even things that seemed implausible at some point in the past.
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The ball shouldn't just be in the employers court for all intellectual property created while employed. Joel is just another uber rich techie doing what he can to make sure nobody under his staff is able to build the next big thing.
I'm boycotting StackOverflow & all of StackExchange as well.
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Maybe the possibility of being publicly shamed is a deterrent from pursing ownership.
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Major caveats: I haven't ever tested this method in an actual legal dispute. Also, the negotiation involved a shouting match in a crowded bar. YMMV.
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If you approach it right (sometimes I show them how this limits our ability to work with OpenSource software) you can often swing it. Admittedly, the larger companies are less likely to entertain the request of some new hire.
I think more people should bring this up in the hiring process (you don't have to push it), but lets teach companies that it's not just vacation that maters to us.
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Do your friends get to remove their contributions while you turn over a gutted and completely broken project?
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Technically it's a property of the previous company. However if you later enhanced and expanded it further, you ought to have a share. And in practice, don't we have some good examples of startups which were built on ideas initially rejected?
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(Companies, not employees, to get credit for inventions if merit system in place)
http://www.japantimes.co.jp/news/2014/10/10/national/compani...
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As an employer, when you decide to hire someone to produce software for you, you assign them a private key tied to a certificate issued by the employer's certificate authority. The employer then has tooling which requires all commits to the employer's repositories to be signed with a certificate issued by the employer's certificate authority.
Then it's very simple: any code which has been signed by those certificates unambiguously belongs to the employer. Any code which has not been signed by those certificates does not belong to the employer.
Employers can demand that employees sign their work with these certificates in order to consider the work done, so employees who refuse to sign the work with those certificates risk giving up their salary for breach of contract. Employees are then free to sign whichever code they want on their free time, and assert ownership by virtue of it not being signed with their employer's certificate.
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I ran into this myself, but decided not to get in a tussle with this client who turned out to be ripping off customers, not paying me, etc. etc. Things had been progressing along under the assumption the company owned the copyright, or I was implicitly transferring copyright, and to go and try claw back everything I'd written would have been perhaps futile (the courts would not have thought much of my change of mind) and a very big time and money black hole.
I thoroughly pay attention to contract matters now. I never had a bad client before and none of the stuff I'd developed before either seemed valuable enough. But writing _all_ the code for a startup that ... oh, I don't want to take about it :)
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NOT ME.
I dread the time when in order to pay my bills I had to sign a contract...
Released all my ideas to the public domain: https://github.com/genesisdotre/wiki/wiki/Ideas-released-to-...
"original matter, work or creation" - on my occasions I wanted to ask how about: 1) cake recipes 2) gardening 3) drawing with my kids 4) urine and excrements 5) photography
(if I was to create YouTube channel talking about philosophy that would inevitably belong to them as well)
Can we please introduce employment contracts that are fair to both sides?
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After that YC what is the score?
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It shouldn't matter if she comes up with those ideas during 9-5 or any other time. It shouldn't matter if she comes up with another 4 ideas of her own on the side, or even works part-time for someone else too. You're paying for an outcome, 6 games including all associated IP because that's what you're going to sell on to the public.
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"Contractor may provide services to third parties so long as Contractor does not provide any software development services to other entities. "
"Other entities" is an interesting term. Since the contractor is explicitly mentioned in the text separate from these third parties or other entities, it would seem the contract does not prohibit the contractor doing work for himself.
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And THAT'S the place to leave truck-sized holes to drive through, especially if you have a good idea of what your side project interests are at that point.
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i'm just curious if there are precedents where someone's side project, completely unrelated to their company's product/market/customer base, but it ended up being lucrative and the company negotiated some shares/ownership of the side project become startup.
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Reading this was quite devastating, not even started, and I feel like I already lost, even though my side project has next to nothing to do with my current industry.
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Speaking of, I'd like some collaborators to help with my side project "Terra Plant": https://baqqer.com/collaborate
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In Sweden, you cannot force a worker to only have one job for example because that is illegal.
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"...this particular clause is built into the standard Nolo contract and most..."
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Doesn't this mean I can host my side project on company infrastructure? Commit it to company repositories? Submit it for code review which will probably be done on company time?
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With that said, which employer wants their employee watching TV and not breathing software 24/7? I really struggle to imagine the risk here is greater than the reward.
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First, there is a very high bar for what is regarded the property of the company vs your own work. Even if you created your own open source project website and pushed code on your own github account using their laptop, as long as it doesn't directly compete or use portions of proprietary code, there is zero chance it will stand in court. Non compete clauses are next to impossible to uphold unless they literally sold trade secrets or company's code directly for profit. Even if they made a near identical version, it would be a tough uphill climb if you didn't copy & paste their code directly in your own source code.
Of course, the Goldman Sachs vs open source dev was a very interesting and a rare case. I don't have more insight into that case but if somebody could that 'd be great.
But for the most part, Joel's piece is spreading FUD into innocent developer's dreams and projects, and you don't need to heed attention.
For the truly paranoid and follower of Joel's flawed legal analysis which looks at syntax than the semantics or spirit behind the written law which almost always the overwhelming use:
1) Incorporate your own company
2) Purchase laptop under your new corp
3) Do your work on there.
Disclaimer: This is not a legal advice. I'm not a lawyer. I could be wrong. Check with a real lawyer and do your own due diligence.
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No, it's not that ambiguous at all. The courts rarely side with the company, and only in cases where it's quite obvious the work was directly related. If your side project isn't directly related to the work you are doing, then you don't need to worry.
Don't let Joel or any other tech CEO scare you into not working on side-projects. Don't even tell your employer about side projects. Leave them out of the loop entirely.