Has anyone dealt with something like this? I'm not sure what my options are.
employer claiming my side project IP. I've been dealing with this for about 3 weeks now and the situation isn't improving.
This involves software/code I developed over the past 22 months. I do have documentation proving my ownership and timeline.
What are the risks if I pursue this? What's the likely timeline?
I've dealt with this before.
In my case or whatever, it took about 2-4 months to resolve. The key was hiring an attorney to send the initial letter ngl.
Not a lawyer, but I have direct experience with this.
The magic words were "let me speak to your supervisor"/manager. It took 1-3 months but was worth it.
I built a SaaS product as a side project on nights and weekends using my own equipment. It's in a completely different market than my employer. They found out and are now claiming they own it under my employment agreement's IP assignment clause.
The clause says I assign all IP "related to or useful in the business of the Company, whether or not conceived during working hours." My side project is a cooking recipe app. I work for a fintech company. How is a recipe app "useful in the business" of a fintech company?
Your strongest argument is the "related to or useful in" language — a cooking recipe app has no connection to fintech. However, employers sometimes argue broadly:
These are generally losing arguments, but the strength of your position depends on your state:
California (Labor Code § 2870): Explicitly protects employee inventions developed entirely on personal time, with personal resources, that don't relate to the employer's business. Your recipe app would be protected.
Other states: 8 states have similar statutes (DE, IL, MN, NC, WA, KS, UT, MT). In states without such laws, the contract language controls more heavily.
Regardless: did you use ANY company resources? Company laptop, company email, company cloud accounts, any work time? If yes, that weakens your position. If you can demonstrate complete separation (personal devices, personal time, unrelated field), you're in a strong position.
I went through a nearly identical situation two years ago and it resolved in my favor. The key legal concept here is scope of employment under the work-for-hire doctrine in 17 U.S.C. Section 101. For your employer to own your side project, the work would need to either be prepared within the scope of employment or fall under a specific work-for-hire agreement.
The broad language in your IP assignment clause is actually more common than you might think, and courts have generally interpreted it narrowly when the side project is in a completely different field. In Mattel v. MGA Entertainment, the court dealt with a similar broad assignment clause and found significant limits on its reach.
What really matters is the totality of circumstances: Did you use company time? Company equipment? Company proprietary information? If the answer to all three is no, and your side project is in a completely different domain, most courts will side with the employee. In California, Labor Code Section 2870 provides explicit protection and cannot be contracted around.
My practical advice: gather all the evidence showing separation between your side project and your employment. Personal laptop purchase receipts, personal subscription payment records, git commit timestamps showing after-hours work, and any documentation that the project concept predates your employment. Then consult with an employment attorney before responding to the demand letter.