Legal Question in Business Law in California

Compensation for Ideas

I have been a resource of information regarding practices, procedures, systems and processes under the pretense that the information provided was implied as a conditional to being hired. Included in a letter along with a contract and letter of intent was a clause/ verbiage explicitly intent that with use of said info a contract of consultation and so forth would be liable to compensation. Having proof of all the information prescribed, and having visible proof that said information has been used without compensation what are the laws regarding due diligence, right to compensation? Are there any clauses within intellectual property laws that affirm the right to compensation for special circumstances/services regarding specific consultation to a particular business/ entity?


Asked on 12/22/08, 8:38 pm

3 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Compensation for Ideas

If you don't have either a signed written contract or an oral contract for the work you did and the ideas you imparted under which you can sue, there may be another alternative: A suit to recover on a quantum meruit basis for the fair value of services rendered based on a promise implied in law, and to prevent unjust enrichment of the business entity. Look up the concepts "quantum meruit" "implied contract" "unjust enrichment" and perhaps "quantum valebant" on a search engine.

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Answered on 12/30/08, 4:13 pm
Edward Hoffman Law Offices of Edward A. Hoffman

Re: Compensation for Ideas

You're making this more complicated than it has to be. If you had a contract that required the company to pay you for your advice, and if you gave that advice but weren't paid for it, then you have a straightforward claim for breach of contract. Due diligence, intellectual property, etc. have nothing to do with it.

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Answered on 12/22/08, 8:50 pm
Terry A. Nelson Nelson & Lawless

Re: Compensation for Ideas

You either have a breach of consulting agreement with merit, value and judgment collectability, or you don't. Look to the terms of the agreement to see what, if anything, is enforceable. Then decide how much time and money you'll be willing to risk trying to enforce it by litigation. If you're serious about filing suit, or at least trying to negotiate a settlement of your threat of lawsuit and claim, feel free to contact me to discuss the actual facts, risks and rewards.

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Answered on 12/22/08, 8:57 pm


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