All large organizations have a decent amount of bureaucracy around copyright and IP, but the difference is good ones make it easy and straightforward for employees to go through that process.
Google, for example, has a well-documented and clear process for contributing to open source software (both in work hours and in personal time): https://opensource.google.com/docs/patching/
It's not entirely unreasonable - imagine someone in Biochemistry developing some drug using University labs etc. and then turning around and selling the formula to a private lab.
But it's the petty bureaucratisation which is infuriating. (And usually the people making the decisions aren't practically qualified.)
I have a friend who went to Utah for his bachelor's in CS.
To elaborate, even if GP developed code as part of a GPL project, the copyright owner could prevent him/her from distributing that code to anyone else, whether that distribution occurs under the GPL or any other license.
And yes, it's outrageous.
It's harmful for open source, and a terrible situation that's not to anyone's benefit. I guess US law should make more clear that employers don't own their employees' private work?
I always imagined it stems from historical experiences where staff ran off with ideas that they were paid to have within the scope of their employment. So perhaps this is the only way employers have thought of protecting themselves against that. Ie., what other way do we have to offer them?
The problem as someone else stated above in this discussion is that with a company the size of IBM it is hard to do anything that is guaranteed not to compete with anything they do.
It appears that this is one of those issues that polarizes people very strongly into one of two possible options. My response to the complaints above is usually "tough luck", because I do not see it as my task to ensure that other people cannot cheat. In fact, with today's availability information, I'm certain all those that want to cheat can and will do so easily, no matter what.
This leads me to the conclusion that the fundamental problem is actually the conflation of two very different purposes which are often at odds: teaching and certification. Universities try to do both and it often ends very badly. Certification should be removed from universities and put into separate, specialized organizations.