"We are kinda indifferent. If you piss us off, we will look for ways to make you miserable. If you leave and start a competitive company or even a half-competitive company, we will use this contract to bring you to tears. BUT, if you don’t piss us off, and serve us loyally, we’ll look the other way when your iPhone app starts making $40,000 a month."
FYI - my father's situation happened about 20 years ago in the late 90's.
I am now very sad.
"be careful before taking legal advice from the Internet." - Indeed, Joel. Indeed.
I will point a couple:
- He says that contractors "by default" own the IP of the work they do for their employers. This is actually exactly the opposite: "work for hire" means that the employer owns the IP by default: http://contently.net/2013/07/09/find-work/work-made-for-hire...
- He glosses over / minimizes the fact that most of these "invention assignment" clauses are doomed in a court of law more often than not (even ignoring the states that outright prohibit them) if they do not fall within the scope of employment (sorry, I don't have a reference here, but I have heard of many such cases being thrown out in court)
As a business owner, he comes across as having a very clear agenda which is at odds with the reality of the law and the actual outcomes of these cases in court.
https://www.copyright.gov/title17/92chap1.html
A “work made for hire” is— (1) a work prepared by an employee within the scope of his or her employment; or (2) a work specially ordered or commissioned for use as a contribution to a collective work, as a part of a motion picture or other audiovisual work, as a translation, as a supplementary work, as a compilation, as an instructional text, as a test, as answer material for a test, or as an atlas, if the parties expressly agree in a written instrument signed by them that the work shall be considered a work made for hire.
I think I was probably misremembering my experience as a software contractor, in that I don't think I ever signed a single contract that did not include the "work for hire" stipulation.
Ironically, it seems far from clear that "work for hire" even applies to software: http://www.lexology.com/library/detail.aspx?g=59a4a8c4-c446-...
Exactly, which is why his post is totally self-serving propaganda.
Though he tries to present the post as "here's a totally objective explanation of how side projects interplay with employment law", ultimately his point comes down to Business owners have all these complicated issues to deal with, so just accept the fact that they're going to screw you over, while they make millions of dollars
There's no credibility given to the fact that companies have choices here and there are other options that don't screw over the employees - those options are too hard, and they might introduce legal risk to the company, or (!gasp!) scare away investors.
It's just accepted as given that business owners must do whatever it takes to protect their company's interests and employees should shut up and deal with it. Employees carry the legal and financial risk because it would be inconvenient for the company to do so.
The company is simply acting in its own self-interest and it's not actually trying to screw you (probably), that's just an irrelevant side-effect that they might take advantage of in the future when they do want to screw you. Now that know that you understand that, you're totally cool with it right? It's just business.
I don't think Joel is intentionally trying to be manipulative. I think he honestly believes all of that. As a business owner he's dealing with all those issues and he thinks he's making appropriate choices and has no particular intention to screw over his employees. The purpose of the post is so that everyone can see that he, and business owners like him, are not a bad guys - they're just acting rationally and you only thought you were getting a bad deal because you didn't understand the choices they're making.
"What are you doing sitting there just cruising the web, Ms Contractor" > "Oh, I'm just waiting for this quarter's invention to pop into my head. Thanks for the payslip!"