Recent Federal District Court Ruling Provides Insight Into How To Draft An Enforceable Intellectual Property Assignment Provision In An Employment Agreement


A recent ruling by the U.S. District Court for the Northern District of California provides important insight for employers in how to properly draft intellectual property assignment provisions that comply with California law.

In 2007, Plaintiff Applied Materials, Inc. ("Plaintiff") filed a lawsuit against Advanced Micro-Fabrication Equipment and its China and Asia subsidiaries (collectively "Defendants") alleging misappropriation of trade secrets and unfair business practices. Specifically, Plaintiff alleged that several of its former employees who had gone to work for Defendants had violated the intellectual property assignment clause ("Assignment Clause" or "Clause") contained within their employment agreements with Plaintiff ("Employment Agreements").

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