Who Owns the Intellectual Property Developed by an Independent Contractor?

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In general, the decision to hire an employee or an independent contractor will depend on several factors, including the type of business, corporate form, and tax structure. Often, employers do not wish to burden themselves with the many obligations that accompany permanent employment, including workers compensation, insurance, and taxes. However, businesses must be aware of the consequences that result when an independent contractor is hired instead. In this article, we discuss one often overlooked factor: whether inventions or discoveries made by an independent contractor will be owned by the employer.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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