IP Assignment in Employment Contracts: What You Actually Give Up

IP assignment clauses matter most when you create things: code, designs, writing, inventions, product ideas, processes.

Many employment templates try to capture more than what you create at work. Some try to capture everything you create, period.

What "IP Assignment" Means

In plain English: you transfer ownership of certain inventions and work product to your employer.

The Side Project Problem

A risky clause looks like:

*"Employee assigns to Company all inventions conceived or developed during employment."*

If not limited, that can include personal projects made at home.

What a Fair Clause Usually Does

Fair IP assignment is typically limited to: - work created within the scope of your job - work created using company equipment or confidential information - work that relates to the company's business or planned products

What to Ask for (Carve-outs)

• A schedule listing your existing projects.
• Clear language that your pre-existing IP remains yours.
• A carve-out for unrelated side projects created on your own time, without company resources.

If you have a side project, ask to list it by name in an exhibit.

"Works Made for Hire" (Plain English)

This phrase is often used to say the employer owns the work from the start.

It may not apply to all employment output, but it signals intent: they want ownership.

Quick Answers (AEO)

Can an employer own my side project?

Sometimes, depending on jurisdiction and contract language. If the contract is broad, negotiate a carve-out.

What should I include in a carve-out list?

Apps, repositories, writing, templates, design systems, and anything you plan to continue building independently.

If you are unsure whether a clause captures your side projects, paste it into Clauze and Clauze reads what you are actually assigning.