How Can a Business Protect Itself from Its Own Employees?

Learn how an Employee Proprietary Information And Inventions Agreement can help save your business.

Learn how an Employee Proprietary Information And Inventions Agreement can help save your business.

In structuring and forming a business, the business owners should not only focus on ownership and directing issues but should also consider the appropriateness of agreements between the company and the employees. 

It is really important for a Proprietary Information and Inventions Agreement by signed by all employees of the company. A Proprietary Information Agreement (or Nondisclosure Agreement) will require the employee to keep the company’s proprietary information confidential and to use such information only as authorized by the company. 

Provisions in an Employee Proprietary Information and Inventions Agreement will effectually assign to the company any inventions that 1. result from work performed for the company, 2. are discovered during company time, or 3. arise from the use of trade secrets, company materials, or equipment.

Please note that an Employee Confidentiality and Inventions Assignment Agreement is the same thing as an Proprietary Information Agreement and also Employee Intellectual Property Assignment Agreement as well as a Protection of Company Interests Agreement.

These agreements put the employer under an agreement to keep the employer’s important information confidential in the interest of the company. Further, it assigns to the company all inventions and creations made under the employment relationship.

Other provisions found in a Proprietary Information Agreement include a an agreement that the employer relationship is at will meaning that the company can terminate the relationship at any time, with or without clause. Further, the agreement can force employees to return all company materials upon termination.

Are you a business or an entrepreneur? We can help with your legal needs.

Mollaei Law is a business law firm serving businesses and entrepreneurs. We can help with all of your business needs including tailoring legal documents for your business, reviewing and drafting contracts, negotiating, business planning, setting up business entities, and helping with any of your business transactional forms. 

For more information, visit www.mollaeilaw.com/starting-a-business or give us a call at (818) 925-0002.