Over the last few months, I’ve spent a fair amount of time building a tool that I’m reasonably certain I can sell (nothing novel, don’t get too excited) and I would really like to try. I know there is a customer base and I know it’s useful… because I built it to use myself. But I also plan to use it at work, that’s half the reason I built it. In fact, most of the company templates are just mine that I brought with me when I was hired.
While 90% of the time I spent building it was in the evenings, on my ‘own’ time… perhaps 10% of it was ‘company’ time where I had free time and spent it building this tool.
I’m 90% certain that my employee contract states any ‘inventions’ created are owned by the company, which is pretty standard in my industry. So I have a few questions:
- Does my employer own this tool? (I know you aren’t lawyers, but maybe someone has insight?)
- What is the risk of selling it anyway? What happens if I sell it and use it at work?
- How do I find a clear path forward (without hiring a lawyer. This is practically hobby-tier, I don’t want to take it that far)
Posting from alt account because I’m paranoid and want to retain anonymity JIC
- Create a copy of a tool for your company where ypu work that has only essential part.
- Original has more features including some distinct ones which you will market.
In short, try to make them as different as possible, still doing the same thing.
Quit, wait a year then do it.
Why are you asking Reddit if you aren’t sure about the terms of your employment? Read your company’s employee handbook. If it doesn’t discuss this, ask your legal / compliance team for the rules around it. You’re going to spend a boat load in legal fees talking to a lawyer if you can’t be bothered to familiarize yourself with your company’s policies.
Starting off with a lawyer like a bunch of people are suggesting is just going to set you up to rack up legal fees and it’ll ensure that your company won’t trust you. Management and legal teams do not like surprises. Discuss this openly with your company’s legal / compliance team, and then hire a lawyer if you need it.
You’re going to run into two possible issues:
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Like you mentioned, anything built on company time may be property of the company you work for.
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Even if it’s not, and you get the go ahead, you need to know if you are required to self report any outside business doings. If you plan on selling the tool, you’ll need to be a small business / sole proprietor. This could need to be reported and approved before doing anything. If this isn’t approved, issue 1 is a moot point.
I’m an engineering manager in a highly regulated space. We need to check legal boxes for this type of stuff. That’s it. I fully support my reports if this comes up. But my responsibility is to the company first. If the software is not specific to the line of business we are in, isn’t an integral component to classified IP, it wouldn’t compete with us in any way, and you could sell it while not impacting your ability to work during your scheduled hours, you’re good to go.
Best of luck.
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- Read your contract. The answer is in there.
- There’s too much strategy here to give an answer. You say it’s hobby level. Your employer probably won’t care if you earn $5/mo
- Why would you not hire a lawyer? If you don’t perceive the cost to be worth it, then maybe it’s not such a great tool after all.
If you used the work laptop you’re fucked. If you used your own computer you might be ok, but you might need your boss’s permission.
Don’t bring it up to your employer!
You have already made the mistake of giving the templates from your previous job for free! Don’t repeat the same.
Think smart. Have DMed you a probable way. Check.
Does anybody know about the 10% work time? If not, you used 100% free time at home
Doesn’t usually matter
Must paperwork I’ve seen states anything you create is theirs no matter what
It’s standard in most jobs but most people don’t care, like OP.
Well part would be “can they prove you worked on it during paid working hours?”
If it is all on your own machine, and you don’t have like…a git history that includes times durkng work, then they won’t have much there.
If you’re in doubt, I’d let your company know and get written confirmation that they allow you to do this on your own time before trying to sell it/use it for your work.
If you just made it and it doesn’t directly compete with anything your company is doing, odds are that they won’t care. Most companies aren’t out to steal your ideas and the general clause about IP is for avoidance of doubt and to deter employees using their knowledge to compete.
If it turns out you’re making millions from it and then you ask, they might get petty and claim it, though. With written approval beforehand, you’ve got your legal precedent in order.
Beware that they may tell you that they’d prefer you not working on a second business simultaneously.
Well your first mistake is saying 90% of the time it was evenings. Talk about opening yourself up for attack.
I’ll manufacture it for you dm me
If you invented it and can patent it, consider it yours. What’s stopping you from hiring a factory in china to mass produce it?
Some awful advice here.
- Read your employment contract. Look for an inventions or IP clause. It will clearly state their expectations if it’s in there.
- You stated this solves a work problem, so it seems likely some work was done on company time - that likely makes it company property.
- Check company policies regarding the subject, mature companies are likely to have a process in place.
- Gather all the documents mentioned above and talk to a lawyer.
I would just say you 100% made it in your own spare time to avoid legal nonsense.
Although if you have a NDA or non compete you might be fucked without context it’s hard to help
I came across this a while back and even asked the question in my MBA course where the professor was a serial entrepreneur 9+ exits, 100m average exit and he brought a legal expert in ventures to talk to the class.
The answer pretty much boils down to:
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Did you use any specific tools that the company had access to that you otherwise would not have. Think expensive software licenses, expensive equipment etc. (not generic tools like a laptop)
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It’s incredibly hard for a company to prove that they own your “invention” because you built it on company time. It’s not enough for you to just have worked on it during company time.
Hope this helps
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