Introduction
In a case like this, when a person sells his idea to a company, the dimensions of his rights vis-à-vis the company would stem from the terms of the contractual agreement he has signed with the latter. The terms and conditions surrounding the sale agreement would determine the extent to which he would be able to exercise any exclusive right over the final product.
Sale of ‘idea’ to Company
In this case, it also needs to be seen that what the individual has sold to the company is the idea to make and market the product, and not the product itself. Hence, his rights and obligations would be seen from the truth of this perspective. Moreover, the responsibility of funding the idea and undertaking necessary research to convert it into a final product is being taken by the buyer company, and not by the individual. Thus legally speaking, the person’s right ends with the selling of the idea to the company. However, if he has leased or mortgaged the right for specified period, to the company, the laws relating to leasing or mortgaging of intellecurtal property rights would be invoked. Basically, an exclusive right allows the person to transfer, sell, and mortgage or license the right to third parties and thereby dissuade others from using the exclusive right to the said property.
Decided case on intellectual property rights : Evan Brown v.Alcatel Inc, F/K/A DSC Communication Corporation No. 05-02-01678-CV
It is seen in a landmark case law relating to intellectual property rights that even a person’s thoughts could be the property of his employer company. In the Alcatel case, the defendant, Evan Brown was working with a company on a project of deciphering computer software, and he developed a method of converting machine executable binary code into high level source code form using logic and data abstractions. The purpose of this idea is to take existing executable programs and “reverse engineer” the intelligence from the programs and “recode” the intelligence into a portable high level language.” (Brown).
Legal consequences of not handing over solution to Company
He was under contractual obligation to employers to disclose the solution of his research which he refused to do. Eventually, the company terminated his services and proceeded legally to recover the solution from him claiming it to be the company’s property.
The court sided with this contention of the company. Judge, Curt B Henderson of the Collin County, Texas, 219 DC, who presided the case delivered the judgment saying that the contract with Brown was ‘valid and enforceable’, since it was a legally valid document.
The court also held that, pursuant to the contract, the company owned full legal right, title and interest to what Henderson called Brown’s “solution,” which he defined as the process and method developed by Brown for converting machine-executable binary code into high-level source code; reverse-engineering the intelligence from existing programs and recoding it into high-level language; and converting certain machine code into C language source.” (Goldman).
Only patented documents could be legally enforceable
In this context it needs to be said that an idea cannot be legally protected until and unless it is patented. Only a patented item can seek protection available to intellectual property. In this case, it is seen that what the person sell the company is only the idea and not a patented product. Ideas as such cannot be patented unless it is documented and executed. But once it is patented, it enjoys legal status.
Conclusion
In this case, whether the person selling his idea has complete or partial rights over the product which his idea has produced, would depend upon whether his contractual obligation with the buyer company allowed such right to accrue and if so, on what terms and conditions.
Works Cited
Goldman, Erica Lehrer. Idea in former employee’s head belongs to Alcatel. Law.Com. 2002. Web.
Brown, Evan. Appellant Alcatel USA Inc, F/K/A DSC Communication Corporation. Appellee. Affirm and Opinion Field. 2004. Web.