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Does Your Employer Own Your Thoughts?

MJ writes "Evan Brown has finally lost his 7 year court battle over ownership of thoughts in his brain. Judge Henderson of the 219th District Court in Collin County, Texas granted DSC Communications Corporation, Inc (now Alcatel, USA) a Final Judgement granting DSC ownership of Mr. Brown's idea of a reverse compiler that Mr. Brown claims to have begun formulating twelve years before his employment at DSC and during his off-time while at DSC. Mr. Brown has received media coverage in print, televion and on the Internet: The John Marshall Journal of Computer & Information Law, Wired, Computerworld. This rings similar to previous Slashdot articles on employer/employee IP rights."

20 of 758 comments (clear)

  1. Say it isn't so by Donoho · · Score: 5, Interesting

    Just because it's the law doesn't mean it's fair. Why is it a company can own my ideas, but I can't own their software? How about leasing our ideas?

    1. Re:Say it isn't so by Markmarkmark · · Score: 3, Interesting

      Sorry, that point of view is just wrong. As the founder of a software company, let me assure you that a reasonable proprietary rights agreement signed by all the developers at the company is essential. Without it companies could not get investors (they want to know what they are buying a piece of). Investors are where the paychecks come from. Nor could we deliver to our employee/shareholders an IPO or acquisition that will hopefully make them wealthy. Without clearly defining what the company owns, no acquirer or underwriter would ever give us the time of day.

      The company is paying cash money to the employee to do 'work-for-hire'. Unless otherwise arranged, the company should own the resulting work. The company is taking all the risk. The product may be worthless, there may be no market, but the employee has already taken his/her cash money to the bank. Yes, it's less than a owning part of the product if it's a hit but no risk/no reward.

      As for an idea that's completely unrelated to the field that the company is paying the employee to think about, and the employee had the idea on their own time and only developed it after they left the company (without using any company-related ideas or proprietary information) then that idea should belong to the employee.

    2. Re:Say it isn't so by stienman · · Score: 4, Interesting

      Why is it a company can own my ideas...?

      When you are a salaried employee, in most states, then you do not 'clock in' and 'clock out' of work - you may be thinking about a work problem in the shower, and the company still benefits.

      This has the implication that any work you do within the scope of your job description, possibly within the scope of the employer's products or internal services, and possibly anything you think about at all, belongs to the company.

      This is what a salaried employee is in most states.

      I've talked to some people who work as consultants on the side in addition to full time employment. Most make certian their employer is aware of their side business. One provided a CD of all the generic code and libraries they'd developed over the years, and wrote on the contract that anything developed before employment did not belong to the company. It takes some time to go through this sort of process, and some employers may balk at it, but it may be the only way to overcome this 'problem'.

      -Adam

  2. Sadly, yes... by dhakbar · · Score: 3, Interesting

    Where I work (a well-known PC gaming company) employees must sign a document that basically states that any concepts and technology are developed while employed here are property of the company.

    In some ways, corporate America really treats employees like slaves.

    1. Re:Sadly, yes... by geek · · Score: 4, Interesting

      "Sure, that may mean you don't get the job... is that really so bad?"

      It's been 3 years since I could find a decent paying job that paid the bills. So yes, it's really that bad. If it was one or two companies doing this then you could just not sign and move on, however it's now industry standard and unavoidable anywhere within this country.

      If there was some revolt where people didn't sign anymore, guess what, that's what off shoring is. I was replaced by an Indian at my last good paying job. I got stuck working at a grocery store and was again recently fired and replaced with an illegal Mexican. It's a problem.

  3. I feel we're not getting the whole story by Anonymous Coward · · Score: 4, Interesting

    Maybe it's just me, but this reporting seems so onesided. Perhaps it all boiled down to a non-compete clause that specifically forbade the guy from personally developing products similar to and based upon products sold by the company?

  4. Be careful what you sign! by jfmerryman · · Score: 5, Interesting

    When I was hired by my current employer, they asked me to sign the same sort of agreement - stating that they owned anything that I developed before employment (if not named), and anything I developed during my employment. I balked and they quickly produced an alternate employment agreement which granted me rights to anything I developed on my own time and without using company equipment.

    I suspect that this is fairly common practice. If you don't ask, they certainly won't offer (except in California, where I believe this is the law)

  5. Google's employees by usefool · · Score: 5, Interesting

    Google encourages employees to use 1 day per week on their own hobby/project, does that mean...?

    --
    Uselessful technology (Air-Charged
  6. There is a certain irony in this... by wintermute42 · · Score: 5, Interesting

    From a quick read of Evan Brown's web site it appears that the "unique idea" he claims is a decompiler. That is, a program that will take compiled binary code and convert it into some kind of source code. As an idea this does not seem to be terribly unique or profound. What is difficult is implementing this idea in working software.

    Evan Brown claims that the company he has been in litigation with offered him $2 million for the rights to his "idea". Apparently he turned them down. According to the web site they then sued Mr. Brown claiming to own the idea anyway.

    What I find ironic is that as an "idea" a decompiler is certainly not worth much. An actual implementation, that can be easily retargeted, might be worth $2 million, but it is not clear that this is what Mr. Brown had, or that he was capable of creating this kind of software. The guy was working as tester and debugger, not a compiler developer. His skills seem to have been hacking an existing software base, not creating new, complex software.

    While I am sympathetic with Mr. Brown's David vs. Goliath fight, it does seem that his difficulties lie in being difficult. It seems like there must have been a way out of this other than years of litigation.

    The case also seems to turn on Texas law. While I am tempted to make nasty comments about the state that elected G.W. Bush governor, I'll resist. After all he might be "elected" president and I would not want an all expense paid trip to the US resort in Cuba.

    I will note that at least in California work that you do on your own time that is not related to your employers work belongs to you. And given the history of startup companies here, it also appears that in many cases you can use related work as long as you quit first.

    Oh, and by the way, I have a compiler development background. I'd be happy to deliver a decompiler for $2 million...

    1. Re:There is a certain irony in this... by eric76 · · Score: 3, Interesting
      it is not clear that this is what Mr. Brown had, or that he was capable of creating this kind of software

      Actually, Evan is one of the most capable and impressive software developers I've ever known.

      If most people had made the statements that Evan made, I would not have believed them. But considering the source, if Evan claimed he could do it, I am quite confident that he could do it.

  7. Bull by geekoid · · Score: 4, Interesting

    What ahppens when every company has a contract that says they own everything you think of, even before employment? Are we all suppose to starve, because thats what it comes down to, go hungry, or let the 'Corp' own everything.
    It seems to me that shouldn'e be allowed and WE do need government intervention to maitain a balance.

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  8. The problem is... by fpga_guy · · Score: 4, Interesting
    The problem is that in working with any reasonable tech company, you are going to be exposed to ideas that will co-mingle with any existing or new "private" ideas of your own.

    It's the nature of human creativity, and it's almost impossible (and meaningless) to disentangle the two.

    Clearly, blanket assignment of all "IP" (I hate that term) to the employer is not fair, but nor is it reasonable to argue that his private stuff is completely seperate.

    A reasonable reward scheme for new ideas generated by employees would be the best idea - isn't that what IBM (and recently Microsoft) does? Basically you assign the patent to the company, but you are listed as the inventor and get a license income stream plus "invention bonus"...

  9. Read this if you've ever had a thought of your own by 955301 · · Score: 4, Interesting

    If you plan to work on anything related to your career outside of the company, create a corporation and work through it!! Companies don't write subcontract agreements that encroach on the sub's intellectual property, which is what you have! They write employment agreements that do.

    If you plan on doing something with your ideas, then commit! Start an S-Corp, get some liability insurance, and have your "employer" pay you by invoice instead, and sub out your own payroll. You will NEVER be asked to give up your company's intellectual property by any business you truly want to work with.

    Sure the opportunities are more slim, but hey, you're coming up with stuff on your own time, so put your money where your mouth is.

    I did this and my client started with a subcontractor agreement that explicitly stated that my IP was my IP and their IP was theirs. It was refreshing.

    Yes, Virginia, the laws are made to benefit the corporation. So Incorporate!

    --
    You are checking your backups, aren't you?
  10. This is why you negotiate your contract by achurch · · Score: 3, Interesting

    When I changed jobs recently, this was one of the top things on my mind. So I negotiated with the company to get the following clause into my contract (translated from Japanese):

    1. All rights to inventions, technology, software, etc. ("IP") developed by Employee as a direct result of work for Employer ("Work-Related IP") belong to Employer.
    2. All rights to IP developed by Employee not as a direct result of work for Employer ("Personal IP") belong to Employee.
    3. Rights to Work-Related IP derived from or otherwise containing Personal IP are to be decided in discussions between Employer and Employee.
    4. Employer and Employee agree to execute any documents, assignations, etc. necessary to confirm IP rights.
    5. Employer agrees to pay Employee a portion of any profits made from Employee's Work-Related IP based on Employee's amount of contribution to said profits.

    Admittedly, I had the advantage that the company I work for now called me instead of me applying for a job, which gave me a fairly good bargaining position. But at least for smaller companies, where the company isn't too strangled in rules and standard procedures, something like the above shouldn't be too hard to work out--if you try.

  11. Re:BIG BROTHER ALCATEL by Catbeller · · Score: 5, Interesting

    Some things cannot be contracted away. The classic example is the right not to be owned, ie be a slave.

    This has not been strictly enforced over the years. For instance, Scientology's "Sea Org" (the navy/management/lifers) requires their services for this life and I believe a billion years of subsequent lives. I don't know how this contract'd be enforced, tho.

    I am getting a little more frightened about the rightward ho-ing of the judiciary. Being pro-business is one thing, but letting them own our thoughts?

    What happens when, sometime in the next 100 years, it will be technologically possible to monitor human thoughts? Will we be scanned at work to see if we are thinking anything worth owning? This is not reducing the concept to its absurd conclusion. I'm serious here.

    The right to be secure in our person and possessions should be extended to add security from intrusion of our own damned heads! Screw property rights. Our minds are the only thing they can't own - today - but brick by brick they are prepping a truly unbreakable prison.

  12. Re:Read this if you've ever had a thought of your by Grax · · Score: 4, Interesting

    Personally I am in favor of the death penalty for corporations convicted of murder.

    It is possible to incorporate without a lawyer. All you need to do is fill out some paperwork and file it with the government. Whether or not you use a lawyer I would still recommend doing your homework so you know what you are getting into.

  13. Should have lived in Germany ... by quarkscat · · Score: 3, Interesting

    where an employee's personal inventions are
    ALWAYS owned by the employee, NEVER by the
    employer.

    In the USA, the employer basically OWNS the
    employee (and any useful employee thoughts.)

    If I weren't such a dummy with the German
    language (written & spoken), I might have
    emigrated there long ago. Personal freedom
    in the USA is rapidly slipping away, especially
    with the "corporate national socialist" regime
    in power today.

  14. NIETZCHE - THE GAY SCIENCE BK I -APHORISM 40 by benzapp · · Score: 3, Interesting

    On the lack of noble manners. - Soldiers and leaders still have far better relationships with each other than workers and employers. So far at least, culture that rests on a military basis still towers above all so-called industrial culture: the latter in its present shape is altogether the most vulgar form of existence that has yet exisxted. Here one is at the mercy of brute need; one wants to live and has to sell oneself, but one despises those who exploit this need and buy the worker. Oddly, suibmission to powerful, frightening, even terrible persons, like tyrants and generals, is not experienced as nearly so painful as is the submission to unknown and uninteresting persons, which is what all the luminaries of industry are. What the workers see in the employer is usualy only a cunning, bloodsucking dog of a man who speculates on all misery; and the employer's name, shape, manner, and reputation are a mater of complete indifference to them. The manufacterers and entrepreneuers of business probably have been too deficient so far in all those forms and signs of a higher race that alone makes a person interesting. If the nobility of birth showed in their eyes and gestures, there might not be any socialism of the masses. For at bottom, the masses are wiling to submit to slavery of any kind, if only the higherups constantly legitimize themselves as higher, as born to commad - by having noble manners. The most common man feels that nobility cannot be improvised and that one has to honor in it the fruit of long periods of time. But the lack of higher manners and the notorious vulgarity of the manufacturers with their ruddy, fat hands give him the idea that it is only accident and luck that has elevated one person above another. Well then, he reasons: let us try accident and luck! Let us throw the dice! And thus socialism is born.

    --
    I don't read or respond to AC posts
  15. As a matter of trust by maximilln · · Score: 3, Interesting

    Many centuries ago employee agreements were not a problem. There was a natural feedback loop in the freedom of man to live indigenously. There were abundant natural resources which could be acquired through work and devotion.

    Society has evolved long past that. There is almost no free land anywhere. There are almost no free resources. Even if there were there is no free transportation to get there from here. In today's world a person must prove their usefulness to a company in order to earn the commonly accepted form of currency which they trade for the basic necessities of life.

    At the time of the industrial revolution there was little need for an employee agreement. The common shop workers weren't paid enough to have the opportunity to strike out on their own and set up a competing business. Shop managers were typically compensated fairly enough but still had little possibility of putting together the type of funding that it would take to make use of their knowledge to create a competing business. Those who were wealthy enough to be able to make use of their knowledge were also compensated well enough to keep them from having any desire to compete. In many cases this simple business approach still applies today.

    Why, then, has there been an evolution of employee agreements. As industry has become more powerful politically it has grown less efficient. In some instances the business bloat was so great that an enterprising employee was able to use what they learned on the job, working within an oppressive and stagnant atmosphere, and set up a company built on a "better way". Enter the need for an employee agreement.

    Still, though, there are still environments where the _goal_ is to create employees who can use what they've learned and strike out on their own. These are most commonly seen in skilled trades: the path from apprentice, to journeyman, to master craftsman. The very existence of skilled trades exemplifies that an industry can function, often fruitfully, without the need for employee agreements.

    What then is the real need for an employee agreement? It is greed and preservations of social divisions. Many trolls will abuse posters with,"If you don't like it then leave and start your own business." In truth many people in society have. But what of those of us who cannot start our own business because we're not financially priveleged? For the most part we're ridiculed and dismissed. Now what of those of us who cannot start our own business because it would be a contractual violation of a former employee agreement? Certainly this hasn't stopped people from leaving a bad employer to start their own business. What the employee agreement does is ensure that anyone who does start their own business does so with the blessing of the established players in the field. It is a system of nepotism that preserves power in the hands of those who already hold it. Any real competitors would be sued out of existence by a former employer long before they could get any real business started.

    Apparently Evan Brown tried to start his own business without the blessing of his employer. The real question here is: why wasn't the employer able to retain Mr. Brown? Could they not give him a raise or enough vacation to make him happy or is it that his management was composed of such intolerable selfishness that Mr. Brown did what any sane human would do?

    Employee agreements are a company's way of taking away the last chip that we, as intellectual workers, have: the ability to pack up and leave if the system has become intolerable. Anyone who is a proponent of these agreements is A) naive, B) pampered, C) blind. If the court had sided with Mr. Brown it would have sent a clear message to corporations: treat your employees fairly.

    --
    +++ATHZ 99:5:80
  16. Judgement Summary by ekoffler · · Score: 3, Interesting

    Well after reading the court's judgement the following paragraph seems to say a lot.

    Brown also claims Alcatel was not in the business of designing software, but was in the telecommunications business. Thus, the employment agreement is not applicable to the Solution. However, the evidence in the record establishes that Brown managed the group at Alcatel charged with maintaining and developing automated conversion tools for converting high-level code to low- level code. The record further shows that one of Brown's job functions was to manually convert Alcatel's existing low-level code to high-level code. The evidence shows Alcatel twice investigated automated conversion tools in 1993 and 1995. In addition, in 1993, Brown managed the employee charged with investigating the low-level to high-level automated code conversion process and received a status report on his research on October 18, 1993.
    We do not believe the court below erred in concluding Alcatel, pursuant to the employment agreement, "owns full legal right, title and interest to the process and/or method" that is known as the Solution. We overrule Brown's first issue in its entirety.

    So it seems he did create something related to work and not just a game or php code during his off-time.