What states have laws protecting employee inventions?

States like California, Washington, Illinois, and New Jersey have specific statutes (e.g., California Labor Code Section 2870) that prevent employers from claiming ownership of inventions created entirely on your own time without using employer equipment or trade secrets.

How can I protect my personal project?

Ensure you work on your project outside of business hours, use your own personal hardware and software, avoid using company proprietary data, and verify that your project does not compete with your employer's current or anticipated business.

A TermScore is an AI-generated risk rating from 0 to 100 that evaluates the fairness and risk level of any legal document. A score of 86-100 means the contract is highly favorable, while 0-30 indicates dangerous terms you should walk away from.

What types of documents can TermScore analyze?

TermScore analyzes any legal document including freelance contracts, employment agreements, residential leases, NDAs, brand sponsorship deals, SaaS vendor agreements, and rental applications. Upload PDFs, Word documents, or images.

How much does TermScore cost?

TermScore offers a free plan with 3 scores per month. The Team plan is $15/month for 30 scores, and the Professional plan is $50/month for 500 scores with team collaboration features.

Is my document data secure?

Yes. Documents are processed in memory and analysis results are stored encrypted. TermScore never shares your document data with third parties and you can delete your data at any time from your dashboard.

Can an employment NDA restrict my ability to build a personal project on my own time?

An NDA alone typically protects confidential information, but most employment contracts include 'Invention Assignment' clauses that claim ownership of anything you create during your employment. If your project relates to your employer's business or uses their resources, they may legally own it regardless of when you work on it.

The Difference Between NDAs and Invention Assignment Agreements

Employees often confuse Non-Disclosure Agreements (NDAs) with Proprietary Information and Inventions Assignment Agreements (PIIAs). While an NDA restricts what you can say, a PIIA dictates who owns what you build.

The Scope of Invention Assignment

Most standard employment contracts contain a broad 'work-for-hire' provision. These clauses often state that any invention, software, or creative work conceived or reduced to practice during your term of employment belongs to the company. If the language is overly broad, it may capture personal side projects that have nothing to do with your job description.

Key takeaway: Always look for the 'Invention Assignment' section in your contract. An NDA is rarely the primary tool used to claim ownership of your personal code or designs; the assignment clause is the real threat.

Action Item: Locate your employment agreement and search for the word 'Inventions' or 'Intellectual Property.' Identify if the clause is limited to work 'related to the company's business' or if it is an 'all-encompassing' claim.

Jurisdictional Protections: The 'Own Time' Rule

Several U.S. states have enacted legislation to protect employees from overreaching assignment clauses. These laws generally invalidate contract provisions that attempt to claim ownership of inventions developed on an employee's own time, provided specific criteria are met.

Key Statutory Requirements

To qualify for protection under laws like California Labor Code Section 2870, your project must generally meet these four criteria:

No Company Resources: You did not use the employer's equipment, supplies, facilities, or trade secret information.
No Relation to Business: The invention does not relate directly to the employer's business or their actual or demonstrably anticipated research or development.
No Work-Related Tasks: The invention does not result from any work performed by you for the employer.
Personal Time: The development occurred entirely on your own time.

Jurisdiction	Key Statute	Scope of Protection
California	Labor Code 2870	Strong protection for independent inventions.
Washington	RCW 49.44.140	Protects inventions made on own time/resources.
Illinois	765 ILCS 1060/2	Limits assignment of inventions not related to business.
New Jersey	N.J.S.A. 34:1B-265	Protects inventions not using employer resources.

Action Item: Check if your state has a specific 'Invention Assignment' statute. If you live in a state without these protections, your contract terms will govern your rights entirely.

Red Flags in Your Employment Contract

When reviewing your contract, watch for language that effectively strips you of your rights to innovate independently. These phrases are common red flags:

'Any and all inventions': This language is dangerously broad and does not distinguish between work-related tasks and personal hobbies.
'During the term of employment': This implies that even if you work on a project at 2:00 AM on a Sunday, the company claims ownership simply because you are currently employed.
'Related to the business of the Company': This is often defined so broadly that it could encompass almost any software or creative project.

Key takeaway: If your contract contains a 'pre-existing inventions' schedule, ensure you list your current personal projects there before signing. This creates a carve-out that protects your existing work from future claims.

Action Item: If you find broad, restrictive language, consult with an employment attorney to request an 'IP Exclusion' addendum before signing your offer letter.

Best Practices for Protecting Your Personal Projects

Even with legal protections, you must maintain a strict separation between your professional and personal work to avoid litigation.

Use Personal Hardware: Never use a company-issued laptop, tablet, or phone for your personal project.
Use Personal Accounts: Do not use company email addresses, GitHub Enterprise accounts, or cloud storage (AWS/Azure) provided by your employer.
Document Everything: Keep a log of when you work on your project to prove it was done outside of business hours.
Avoid Competitive Overlap: Do not build a product that competes with your employer's current or planned offerings.

Action Item: Create a 'clean room' environment for your personal project. If you are using a personal laptop, ensure no company-licensed software or proprietary data is stored on that machine.

How TermScore Simplifies Contract Analysis

Navigating the legal jargon of employment contracts is complex, but you don't have to do it alone. TermScore uses advanced AI to instantly scan your employment agreements, highlighting restrictive IP assignment clauses and potential conflicts that could jeopardize your personal projects. By identifying these risks before you sign, TermScore empowers you to negotiate better terms and protect your creative future.