Starting a business while employed
I am currently employed as an electrical engineer by a company that builds custom equipment used in electronics manufacturing. There are no other full time employees, just the owner and me. If I start a business that designs medical devices would my current employer have any rights to IP generated in the new business while I was still employed there?
Re: Starting a business while employed
This may well depend in large measure on whether or not you (1) signed a non-compete, and/or non-disclosure, and/or confidentiality agreement in connection with your employment, if so, (2) the specific terms of any such agreement, and (3) analysis as to whether the agreement is legally enforceable to prevent you from accomplishing what you want to accomplish. Situations like the one you describe commonly involve some form of such agreement(s), which would typically apply here. But your shop is small, so maybe there is nothing actually in place.
When in doubt, act in good faith at all times. In other words, if it feels wrong, don't do it. Whenever possible act in every way to protect the employer's rights and interests until you have officially severed the relationship, and thereafter continue to do so whenever possible and not adverse to your own.
These situations usually require the making of very important decisions, regarding highly sensitive matters of substantial value, in a compressed period of time. Those decisions are often the subject of ensuing litigation. Therefore, it is highly advisable that you seek assistance of counsel to help walk you through this very risky process. A small investment in retaining counsel up front can often save you an enormous investment later on, if you later learn you made an innocent misstep while trying to negotiate these very dangerous grounds by yourself.
Re: Starting a business while employed
This may well depend in large measure on whether or not you (1) signed a non-compete, and/or non-disclosure, and/or confidentiality agreement in connection with your employment, if so, (2) the specific terms of any such agreement, and (3) analysis as to whether the agreement is legally enforceable to prevent you from accomplishing what you want to accomplish. Situations like the one you describe commonly involve some form of such agreement(s), which would typically apply here. But your shop is small, so maybe there is nothing actually in place.
When in doubt, act in good faith at all times. In other words, if it feels wrong, don't do it. Whenever possible act in every way to protect the employer's rights and interests until you have officially severed the relationship, and thereafter continue to do so whenever possible and not adverse to your own.
These situations usually require the making of very important decisions, regarding highly sensitive matters of substantial value, in a compressed period of time. Those decisions are often the subject of ensuing litigation. Therefore, it is highly advisable that you seek assistance of counsel to help walk you through this very risky process. A small investment in retaining counsel up front can often save you an enormous investment later on, if you later learn you made an innocent misstep while trying to negotiate these very dangerous grounds by yourself.
