Bill Text: IA SF312 | 2021-2022 | 89th General Assembly | Introduced


Bill Title: A bill for an act relating to employment agreements assigning rights to inventions by employees and including applicability provisions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-02-11 - Subcommittee: Schultz, Dickey, and T. Taylor. S.J. 332. [SF312 Detail]

Download: Iowa-2021-SF312-Introduced.html
Senate File 312 - Introduced SENATE FILE 312 BY KINNEY A BILL FOR An Act relating to employment agreements assigning rights 1 to inventions by employees and including applicability 2 provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2527XS (2) 89 je/rn
S.F. 312 Section 1. NEW SECTION . 94.1 Definitions. 1 For purposes of this chapter, unless the context otherwise 2 requires: 3 1. “Employee” means a natural person who is employed in this 4 state for wages by an employer. 5 2. “Employer” means a person, as defined in chapter 4, who 6 in this state employs for wages a natural person. 7 3. “Invention” means an original concept which may be 8 rendered into an artistic, educational, or technological 9 expression, including works, compositions, designs, machines, 10 manufacturing or engineering techniques, analyses, or 11 processes. 12 Sec. 2. NEW SECTION . 94.2 Limitation on assignment of 13 employee rights to inventions. 14 1. Any provision of an employment agreement which provides 15 that an employee shall assign or offer to assign any of 16 the employee’s rights to an invention to the employer shall 17 not apply to an invention for which equipment, supplies, 18 facilities, or trade secret information of the employer was not 19 used and which was developed entirely on the employee’s own 20 time, unless any of the following apply: 21 a. The invention relates to the business of the employer or 22 to the employer’s actual or demonstrably anticipated research 23 or development. 24 b. The invention results from any work performed by the 25 employee for the employer. 26 2. A provision of an employment agreement in violation of 27 this section entered into between an employer and employee 28 on or after the effective date of this Act is void and 29 unenforceable. An employer shall not require an employee to 30 enter into such an employment agreement as a condition of 31 employment. 32 Sec. 3. NEW SECTION . 94.3 Employee notification. 33 If an employment agreement contains a provision requiring 34 the employee to assign any of the employee’s rights to any 35 -1- LSB 2527XS (2) 89 je/rn 1/ 3
S.F. 312 invention to the employer, the employer shall provide, at the 1 time the agreement is made, a written notification to the 2 employee of the employee’s rights provided by section 94.2, 3 which notification shall include the text of section 94.2. 4 Sec. 4. NEW SECTION . 94.4 Employee disclosure. 5 An employee shall disclose to an employer, at the time 6 of employment or thereafter, all inventions developed by the 7 employee, for the purpose of determining employer and employee 8 rights to an invention. 9 Sec. 5. APPLICABILITY. This Act applies to employment 10 contracts entered into on or after the effective date of this 11 Act. 12 EXPLANATION 13 The inclusion of this explanation does not constitute agreement with 14 the explanation’s substance by the members of the general assembly. 15 This bill provides that any provision of an employment 16 agreement which provides that an employee shall assign or offer 17 to assign any of the employee’s rights to an invention, as 18 defined in the bill, to the employer shall not apply to an 19 invention for which equipment, supplies, facilities, or trade 20 secret information of the employer was not used and which was 21 developed entirely on the employee’s own time, unless specified 22 conditions apply. 23 A provision of an employment agreement in violation of the 24 bill is void and unenforceable. The bill prohibits an employer 25 from requiring an employee to enter into such an employment 26 agreement as a condition of employment. 27 If an employment agreement contains a provision requiring 28 the employee to assign any of the employee’s rights to any 29 invention to the employer, the bill requires an employer 30 to provide, at the time the agreement is made, a written 31 notification to the employee of the employee’s rights provided 32 under the bill. 33 The bill requires an employee to disclose to an employer, at 34 the time of employment or thereafter, all inventions developed 35 -2- LSB 2527XS (2) 89 je/rn 2/ 3
S.F. 312 by the employee, for the purpose of determining employer and 1 employee rights to an invention. 2 The bill applies to employment contracts entered into on or 3 after the effective date of the bill. 4 -3- LSB 2527XS (2) 89 je/rn 3/ 3
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