What I was talking about is intellectual property assignment clauses. Excerpt:
Under California law, an employee cannot be required to assign any of his or her rights in an invention he or she develops “entirely on his or her own time without using the employer’s equipment, supplies, facilities, or trade secret information” unless: when the invention was conceived or “reduced to practice” (actually created or a patent application filed) it related to the employer’s business or actual or “demonstrably anticipated” research or development, or the invention resulted from any work performed by the employee for the employer (California Labor Code, § 2870) http://www.intellectualpropertylawfirms.com/resources/intell...
Unfortunately you are correct about the Smule CEO being correct (assuming he was quoted accurately).