Legal Question in Business Law in Colorado

I am a software developer for a financial company. I have recently invented several new technologies of which I am considering basing my own business on. The company I work forbids employees from outside employment.

My question is this: If I leave my current company and start my own company which will sell the products I developed at my old company, can I be sued? Does my current company own those ideas even though they have not patented them?


Asked on 8/18/10, 9:40 am

2 Answers from Attorneys

Robert Murillo Pivotal Legal Ltd.

I strongly advise you to talk to an attorney before you proceed further. The employer may have several remedies against you depending on the facts and you do not want to be buried in suits once you start business.

First off, if you developed these technologies while you were an employee, they could be the property of the employer under work for hire doctrines. Moreover, depending on the facts, you could have issues related to trade secret misappropriation or copyright infringement that could impact your rights. Finally, there is an issue of duty of loyalty. These are all complicated and very relevant issues related to your question and would require much more facts to determine your options and risks. The employer has rights under any number of intellectual property (trade secret, copyright, trademark) and common law principles.

In short, there is much more information that would be needed to understand your risks and rights. This is not something to guess about because defending a lawsuit is hundreds times more costly than getting advice at the outset.

DISCLAIMER�This answer is for informational purposes only and discusses general legal principles, trends, and considerations and is not intended as specific legal advice regarding your question. This answer does not establish an attorney client relationship.

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Answered on 8/23/10, 10:24 am
Kevin B. Murphy Franchise Foundations, APC

The other attorney is right on point here. If you developed something on your employer's dime, it belongs to them. Consult with a good business attorney in your area for specific advice.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

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Answered on 8/23/10, 1:37 pm


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