Disclosure of inventions: Overview, definition, and example
What is disclosure of inventions?
Disclosure of inventions refers to the obligation of an employee, contractor, or inventor to formally report any new inventions, discoveries, or intellectual property they create while working for a company or under a specific agreement. This disclosure allows the employer or contracting party to assess ownership rights and determine how the invention will be used, patented, or commercialized.
For example, a software engineer working for a tech company may be required to disclose any new algorithms they develop during their employment, allowing the company to decide whether to file a patent.
Why is disclosure of inventions important?
Disclosure of inventions ensures clarity over intellectual property (IP) ownership, prevents disputes, and allows businesses to protect valuable innovations. Without proper disclosure, companies may lose the ability to patent or commercialize inventions developed under their employment or contract.
For businesses, having a clear disclosure policy allows them to track, protect, and properly assign rights to inventions developed by employees or contractors, ensuring that innovations contribute to business growth.
Understanding disclosure of inventions through an example
Imagine a biotech researcher working for a pharmaceutical company. As part of their job, they develop a new drug formula. Under their employment agreement, they are required to disclose this invention to the company, which then decides to file a patent and commercialize the drug.
In another example, a freelance product designer is contracted to create new industrial designs. Their contract states that any inventions related to the project must be disclosed to the company hiring them. This ensures the company has a chance to secure intellectual property rights before competitors do.
An example of a disclosure of inventions clause
Here’s how a disclosure of inventions clause might appear in an employment or contractor agreement:
“The Employee agrees to promptly disclose to the Company any inventions, discoveries, improvements, or intellectual property created during the course of employment and related to the Company’s business. The Employee further agrees to provide all necessary documentation to facilitate patent applications or other protections as required by the Company.”
Conclusion
Disclosure of inventions ensures that new ideas, patents, and intellectual property developed during employment or contracts are properly recorded and assigned. This protects businesses from IP disputes and allows them to leverage innovations for competitive advantage.
For businesses, having a well-defined disclosure policy prevents legal uncertainties, ensures IP protection, and allows companies to maximize the value of employee or contractor-developed inventions.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.