A former researcher at the National Microbiology Lab in Winnipeg, Manitoba made the news in mid-May after allegedly trying to smuggle genetic material from the Ebola virus across the Manitoba-North Dakota border. CBCNews.ca reported that in his affidavit, the researcher told officers he was working on a vaccine for the Ebola virus and HIV and that on his last day at the lab, he stole 22 vials to use at his new job in the U.S. because he did not want to have to start from the beginning with respect to his research.

With job losses and employees leaving their positions for a myriad of reasons, especially in these strange economic times, the question arises: what can an employee take, and what must they leave, when they vacate their position. While the above example deals with tangible property, employees should also be mindful of intangible property, like intellectual property. Businesses need to be sure that all of their assets, including their intellectual property (IP) assets, are protected. No business wants its valuable IP assets walking out the door along with a former employee. It is important to know what an employee can and cannot remove from the workplace, and what steps an employer can take to help protect its IP assets.

Under copyright law, the creator or author of a work is the first owner of the copyright in that work and would have all the rights that go along with that, including the right to copy, reproduce, translate, and publish the work. However there are exceptions to this rule and one exception relates to works made in the course of employment.

An employee under a contract of service, who creates a work in the course of that employment, is not usually the first owner of the copyright. Instead, his or her employer is, provided there is no agreement to the contrary. Conversely, if the author or creator is an independent contractor or freelancer, they are usually the first owner of the copyright, again, provided there is no agreement to the contrary. This distinction involves interpreting the parties' relationship in accordance with the principles of employment law as well as the context in which the work was created. Any intellectual property that an employee has created in the course of their employment must stay with the employer. Often this concept is reiterated in the employment agreement, which it is not required for this exception to apply but is recommended. As an added precaution, the employment agreement could include an assignment of IP rights for any work that might not fall under this exception.

In the event that the "employee" is truly an independent contractor, and the party that engaged them wishes to use the work, or a substantial part of the work, they created, that party will need to get a license or assignment of IP rights from the independent contractor before they leave. Otherwise, the employer's use of the work could amount to infringement. Under the Copyright Act, such assignment must be in writing and signed by the owner. Presumably, this type of assignment clause would be found in the contract of engagement, usually signed before the work is created. However, a strict interpretation of the Copyright Act does not provide for an assignment of future copyright. An agreement to assign the copyright in works yet to be created may not be equivalent to an actual assignment. Such an agreement may only act as a promise to assign the copyright. While the party that engaged the independent contractor may be able to rely on equitable remedies, ideally a fresh assignment for the copyright in all works would be obtained after those works have been created.

If an assignment of IP rights is in order, it is usually also desirable to obtain a waiver of moral rights. Moral rights are a separate bundle of property rights which are inalienable from and by the author. These rights include the right to attribution (which is the right to have credit for the work), the right to integrity of the work (which is the right not to have the work distorted, mutilated or modified to the extent it would prejudice the author's reputation or honour), and the right to freedom from association (which is the right not to have the work associated with things which would bring the author's honour or reputation into disrepute). Moral rights cannot be transferred or assigned, only waived. A waiver of moral rights is not implied in an assignment and must be explicit to be valid. By obtaining a waiver of moral rights in an assignment, the employer will have the ability to alter the work in any way it wants. A waiver of moral rights should be obtained from a true "employee" as well, as moral rights belong to the "author" of the work, and not necessarily the first owner of the copyright.

One way for employers to protect their IP assets is to clearly establish the relationship at the outset, and include in the employment or engagement contract, the requisite provisions that assign any IP rights if necessary. Employers may also wish to have their employees and contractors enter into confidentiality agreements, or include confidentiality provisions in employment and engagement agreements, which may prevent an employee from disclosing any trade secrets or confidential information.

Copyright does not prevent employees from taking their own ideas when they leave a workplace. However, if the ideas are expressed in a work of some form, that work becomes protected through copyright, and if it was created by an employee in the course of their employment, that work is owned by the employer and should stay with the employer when the employee leaves.


[click on the author's name for more information]

up

One Comment on “Whose Property Is It, Anyway?”

  1. bob says:

    Since he was convicted, there is no alleged.

SlawTips      

SlawTips Top 10 Financial Errors: #8 Always Assume More Risk Than Needed
Friday, February 3

You should assess whether you can accept the financial risks associated with taking the matter, just as clients will assess whether they can (and will) pay your fee. Spend time at the beginning of the. […] »»

Practice

SlawTips Seeing New Federal Legislation
Wednesday, February 1

Today’s Tip is a simple reminder to view by “latest activity date”. The Parliament is back in session and those Slaw Tips readers for whom monitoring legislation is a regular … »»

Research

SlawTips Top 10 Financial Errors: #7 Put Off Dealing With Underperforming Lawyers
Friday, January 27

When everyone in the firm is required to report monthly to all other partners, you instill a culture in the firm that is self-correcting. If someone fails to regularly meet their financial goals, you. […] »»

Practice

noted on Slaw    

MLB Selected Case Summaries    

These summaries of selected recent cases are provided each week to Slaw by Maritime Law Book.
More information.

  • Administrative Law - Judicial review - General - Scope or standard of review

    Ten individuals complained to the Information and Privacy Commissioner that the Alberta Teachers’ Association (ATA) disclosed, in contravention of the Personal Information Protection Act, their personal information between October 13 and December 2, ...

  • Civil Rights - Property - Search and seizure - Search - What constitutes

    The accused was charged with possession of child pornography and making available child pornography. The accused brought an application, alleging several violations of his rights under the Charter.

    The Saskatchewan Court of Queen’s ...

  • Constitutional Law - Extent of powers conferred - Double aspect doctrine - General

    In provincial references, both the Alberta Court of Appeal (510 A.R. 200; 527 W.A.C. 200) and the Quebec Court of Appeal (2011 QCCA 591), concluded that the proposed Canadian Securities Act (CSA) was unconstitutional. A ...

  • Criminal Law - Procedure - Charge or directions - Jury or judge alone - Directions regarding evidence generally

    The accused was charged with breach of trust by a public official contrary to s. 122 of the Criminal Code. The trial judge acquitted the accused. ...

  • Civil Rights - Trials - Due process, fundamental justice and fair hearings - Criminal and quasi-criminal proceedings - Delay (Charter, s. 7)

    MacIntosh was charged on three informations with a total of 43 counts of sexual offences against nine complainants in the 1970s. The first information ...

  • Real Property Tax - Valuation - Business property - Considerations

    Two breweries’ respective properties were assessed as special properties under the Assessment Act, 2006. They appealed their respective municipal tax assessments to the Review Commissioner. The Commissioner dismissed the appeals. The breweries each appealed. The appeals ...

  • Barristers and Solicitors -Duty to court - General principles - Duty of integrity

    The applicant (Girao) and Allstate Insurance Co. disputed entitlements to accident benefits. The respondent law firm represented Allstate. Girao complained to the Privacy Commissioner of Canada (PCC) against Allstate for disclosing her ...

  • Criminal Law - Sentencing - Sentencing procedure and rights of the accused - Plea bargain or joint submission - Effect of

    The accused was sentenced to two years’ imprisonment for three breaches of a recognizance under s. 810.2 of the Criminal Code. He appealed and applied ...

  • Practice - Persons who can sue and be sued - Individuals and corporations - Status or standing - Class actions - Members of class - General

    The plaintiffs were Inuit or Métis persons who were forced to attend certain residential schools in Labrador and Newfoundland. They ...


law foundation icon

The re-development
of Slaw is assisted by
a grant from the
Law Foundation of Ontario

TalkLaw/ParLoi    

This is a listing of a few upcoming events in Canada of interest to lawyers, law students, legal librarians, and others involved in the practice of law.

Clicking on any event in the list below will give you access to more information and to links allowing you to see the full entry and to add the event to your own calendar.

Click this link for a fuller version of the TalkLaw/ParLoi calendar of events and for instructions as to how to add events and calendars to your own calendar.

Switch to our mobile site