On this pageCan the employer require assignment of every invention?
State Law Practice Guide

Employee Invention Assignment in Idaho

Idaho has no employee-invention-assignment statute, so an assignment clause is bounded only by ordinary contract law, the common-law default rules, and the federal patent and copyright overlay — not a California-style own-time carve-out or notice requirement. Idaho's own Supreme Court has applied the inventor-first default, holding that absent express terms an employee keeps the fruits of his own ingenuity, and the enforceability of a post-employment holdover clause is unsettled because the ch. 44-27 covenant statute is textually scoped to restraints on direct competition.

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Can an Idaho employer require assignment of every invention?

There is no statutory ceiling. Idaho has no employee-invention-assignment statute — nothing that voids the assignment of a true own-time, own-resource invention — so an assignment clause's reach is bounded only by ordinary contract law, the common-law inventor-owns default, and the federal patent and copyright overlay. The federal baseline the contract operates against is that rights in an invention belong to the inventor, and the one employment-restraint statute Idaho does have expressly lists intellectual property among the legitimate business interests an agreement may protect.

The statutory silence is verifiable. Title 44 of the Idaho Code (Labor) contains no invention-assignment provision: its employment-contracts chapter (ch. 9) addresses subjects like polygraph testing and board-and-lodging terms, not inventions; ch. 27 governs post-employment covenants; and ch. 8 of Title 48 is the Idaho Trade Secrets Act, which protects qualifying confidential information — its definition expressly reaches computer programs — but allocates no title to inventions. So an Idaho employer starts from contract law, not a California Labor Code § 2870-style statutory ceiling on what an assignment promise may capture.

The federal premise every assignment clause is drafted against is restated in Stanford v. Roche: absent an effective assignment, rights in an invention belong to the person who conceived it .

Since 1790, the patent law has operated on the premise that rights in an invention belong to the inventor.

The closest Idaho statutory text comes to inventions is Idaho Code § 44-2702(2), which defines the legitimate business interests a post-employment covenant may protect to include an employer's intellectual property .

an employer’s goodwill, technologies, intellectual property, business plans, business processes and methods of operation, customers, customer lists, customer contacts and referral sources, vendors and vendor contacts, financial and marketing information, and trade secrets as that term is defined by chapter 8, title 48, Idaho Code.

Because only the contract does the work, drafting precision carries real litigation weight in Idaho. The only litigation found in our review construing an Idaho invention-assignment clause is federal and persuasive only: Battelle Energy Alliance, LLC v. Southfork Security, Inc. (D. Idaho), in which a national-laboratory contractor sued a former software developer over a grid-security program he built and released as open source. The court described the agreement's innovations clause as a present assignment of the developer's rights .

He agreed that any such Innovations and Works for Hire were Battelle’s ‘sole and exclusive property’ and ‘assign[ed] to BEA all of [his] right, title, and interest therein.’

The employer lost both reported rounds. The 2013 decision denied Battelle a preliminary injunction because the developer had already published the code, defeating irreparable harm . The 2014 decision then denied Battelle summary judgment because the clause was ambiguous as applied to an unpaid leave of absence, sending the ownership question to a jury .

The employment agreement is ambiguous as to the disputed language and the parol evidence yields conflicting inferences as to the parties’ intentions.

The practical consequence is that an Idaho employer can, in principle, contract for assignment more broadly than a California or Washington employer, because no statute carves out own-time inventions from the reach of the clause. But the breadth exists only on paper if the words are imprecise: with no statute to fill gaps, an ambiguous clause leaves ownership to extrinsic evidence and a jury, as Battelle shows.

Sources for this answer

Case law · 2011-06-06

A.1 Bd. of Trustees of the Leland Stanford Junior Univ. v. Roche Molecular Systems

Stanford v. Roche confirms the long-standing premise of U.S. patent law that rights in an invention belong to the inventor, the baseline against which any assignment clause is measured.

Since 1790, the patent law has operated on the premise that rights in an invention belong to the inventor.

See Bd. of Trustees of the Leland Stanford Junior Univ. v. Roche Molecular Sys., Inc., 563 U.S. 776 (2011).

Primary law

A.2 Idaho Code § 44-2702

Idaho Code § 44-2702(2) defines the legitimate business interests a post-employment covenant may protect to include an employer's intellectual property — the only Idaho statutory text that comes near employee inventions.

an employer’s goodwill, technologies, intellectual property, business plans, business processes and methods of operation, customers, customer lists, customer contacts and referral sources, vendors and vendor contacts, financial and marketing information, and trade secrets as that term is defined by chapter 8, title 48, Idaho Code.

See Idaho Code § 44-2702(2).

Case law · 2013-10-29

A.3 Battelle Energy Alliance, LLC v. Southfork Security, Inc.

Battelle Energy Alliance v. Southfork Security (D. Idaho 2013) construed an Idaho employment agreement's innovations clause as a present assignment of the developer's rights, yet denied the employer a preliminary injunction because the code had already been published, defeating irreparable harm.

He agreed that any such Innovations and Works for Hire were Battelle’s “sole and exclusive property” and “assign[ed] to BEA all of [his] right, title, and interest therein.”

See Battelle Energy Alliance, LLC v. Southfork Security, Inc., 980 F. Supp. 2d 1211 (D. Idaho 2013).

Case law · 2014-03-12

A.4 Battelle Energy Alliance, LLC v. Southfork Security, Inc.

Battelle Energy Alliance v. Southfork Security (D. Idaho 2014) denied the employer summary judgment because the innovations clause was ambiguous as applied to an unpaid leave of absence, leaving invention ownership to conflicting extrinsic evidence and a jury.

The employment agreement is ambiguous as to the disputed language and the parol evidence yields conflicting inferences as to the parties’ intentions.

See Battelle Energy Alliance, LLC v. Southfork Security, Inc., 3 F. Supp. 3d 852 (D. Idaho 2014).

Must an Idaho employer notify the employee?

Not applicable. Because Idaho has no invention-assignment statute, there is no statutory carve-out to notify the employee about and no notice requirement of the kind California imposes under Labor Code § 2872 or Washington imposes under RCW 49.44.140(3). Even the employment-restraint statute Idaho does have conditions enforceability on the covenant's reasonableness and the worker's status, not on any notice or disclosure formality .

There is nothing to give notice of. A notice requirement exists in California and Washington precisely to alert the employee to a statutory own-time carve-out that limits the assignment; Idaho has enacted no such carve-out, so there is no statutory line for a notice to mark. This is why the entry is marked not applicable rather than a bare no: the question presupposes a statutory carve-out that Idaho does not have.

Idaho's one on-point pattern confirms the point. When the legislature did regulate post-employment restraints, in Idaho Code § 44-2701, it conditioned enforceability on reasonableness and a protectable interest — and said nothing about notifying the worker of anything .

A key employee or key independent contractor may enter into a written agreement or covenant that protects the employer’s legitimate business interests and prohibits the key employee or key independent contractor from engaging in employment or a line of business that is in direct competition with the employer’s business after termination of employment, and the same shall be enforceable, if the agreement or covenant is reasonable as to its duration, geographical area, type of employment or line of business, and does not impose a greater restraint than is reasonably necessary to protect the employer’s legitimate business interests.

For a multistate employer the takeaway is the inverse of the notice states: an Idaho employer neither has to give a § 2872-style notice nor can rely on one to cure an overbroad clause. The enforceability of the assignment turns entirely on the contract language and the general limits on restraints, not on any statutory notice or disclosure formality.

Sources for this answer

Primary law

B.1 Idaho Code § 44-2701

Idaho Code § 44-2701, the state's one statute regulating post-employment restraints, conditions enforceability on reasonableness and a protectable business interest and imposes no notice or disclosure formality — so no Idaho statute requires notifying an employee about the scope of an invention assignment.

A key employee or key independent contractor may enter into a written agreement or covenant that protects the employer’s legitimate business interests and prohibits the key employee or key independent contractor from engaging in employment or a line of business that is in direct competition with the employer’s business after termination of employment, and the same shall be enforceable, if the agreement or covenant is reasonable as to its duration, geographical area, type of employment or line of business, and does not impose a greater restraint than is reasonably necessary to protect the employer’s legitimate business interests.

See Idaho Code § 44-2701.

Who owns an invention by default in Idaho?

The inventor, unless hired to invent — and unlike most states without an invention statute, Idaho has an on-point decision of its own Supreme Court applying that default. Absent express terms, an employee keeps the fruits of his own ingenuity; the federal baseline that rights belong to the inventor, and the narrow hired-to-invent exception, operate the same way in Idaho as elsewhere.

Idaho's own authority is Holders Manufacturers, Inc. v. Cudd. A manufacturing company sued its general manager to compel transfer of the patents and patent applications on a skirt hanger, a fishermen's fly box, and a knitting basket he had developed while running the company; the Idaho Supreme Court affirmed judgment for the employee because the company proved no express employment terms reaching his inventions .

Unless there were express terms, or by the very nature of the employment, an employee is entitled to the fruits of his own ingenuity and inventiveness, as well as the acquisition of property rights.

The court also invoked the general treatise rule that an employee under a general employment owns his inventions absent an agreement to the contrary . Two framing cautions apply: Cudd is a 1959 decision that turned on the employer's failure to prove express terms, not a modern doctrinal framework, and no Idaho appellate decision found in our review analyzes the shop-right or hired-to-invent doctrines by name. The doctrinal load is therefore still carried by the federal baseline.

Stanford v. Roche anchors that baseline: the Supreme Court held that even the Bayh-Dole Act did not displace the long-standing rule that an invention belongs to its inventor .

Since 1790, the patent law has operated on the premise that rights in an invention belong to the inventor.

Because ownership starts with the inventor, an employer's title is derivative — it exists only if and to the extent the employee assigned it .

Thus, although others may acquire an interest in an invention, any such interest — as a general rule — must trace back to the inventor.

The principal exception is the employee hired to invent. Under United States v. Dubilier Condenser Corp., an employee engaged to make a particular invention who succeeds during the term of service must assign the resulting patent to the employer .

One employed to make an invention, who succeeds, during his term of service, in accomplishing that task, is bound to assign to his employer any patent obtained.

Short of that, where the employee is neither hired to invent nor bound by a written assignment but has used the employer's time, tools, and materials to reach a concrete result, the employer's remedy under Dubilier is only an equitable shop right — a non-exclusive license to use the invention, not ownership of it. Because ownership starts with the inventor, Idaho's own high court has enforced that default against an employer, and no statute fills the gap, the dependable path for an Idaho employer is a written present-assignment (hereby assigns) clause that transfers legal title automatically on conception, rather than a future promise to assign that leaves the employer with a mere equitable claim.

Sources for this answer

Case law · 1959-02-18

C.1 Holders Manufacturers, Inc. v. Cudd

Holders Manufacturers, Inc. v. Cudd holds that unless there were express terms, or the very nature of the employment requires otherwise, an employee is entitled to the fruits of his own ingenuity and inventiveness — the Idaho Supreme Court applying the inventor-first default and affirming judgment for a general manager who kept his inventions.

Unless there were express terms, or by the very nature of the employment, an employee is entitled to the fruits of his own ingenuity and inventiveness, as well as the acquisition of property rights.

See Holders Manufacturers, Inc. v. Cudd, 80 Idaho 557, 335 P.2d 890 (1959).

Case law · 2011-06-06

C.2 Bd. of Trustees of the Leland Stanford Junior Univ. v. Roche Molecular Systems

Stanford v. Roche confirms the long-standing premise of U.S. patent law that rights in an invention belong to the inventor.

Since 1790, the patent law has operated on the premise that rights in an invention belong to the inventor.

See Bd. of Trustees of the Leland Stanford Junior Univ. v. Roche Molecular Sys., Inc., 563 U.S. 776 (2011).

Case law · 2011-06-06

C.4 Bd. of Trustees of the Leland Stanford Junior Univ. v. Roche Molecular Systems

Stanford v. Roche holds that although others may acquire an interest in an invention, that interest as a general rule must trace back to the inventor — so an employer takes title only through an assignment from the employee-inventor.

Thus, although others may acquire an interest in an invention, any such interest — as a general rule — must trace back to the inventor.

See Bd. of Trustees of the Leland Stanford Junior Univ. v. Roche Molecular Sys., Inc., 563 U.S. 776 (2011).

Case law · 1933-05-08

C.3 United States v. Dubilier Condenser Corp.

United States v. Dubilier Condenser Corp. holds that an employee hired to make an invention who succeeds during the term of service is bound to assign the resulting patent to the employer.

One employed to make an invention, who succeeds, during his term of service, in accomplishing that task, is bound to assign to his employer any patent obtained.

See United States v. Dubilier Condenser Corp., 289 U.S. 178 (1933).

Are trailing-assignment (holdover) clauses enforceable in Idaho?

Unsettled — and the uncertainty runs deeper than in most no-statute states, because it is not even settled which framework applies. No Idaho decision found in our review addresses a post-employment trailing assignment, and a court could take any of three paths: treat the clause as a common-law restraint of trade judged under the reasonableness test, treat it as a covenant inside the ch. 44-27 statute with its eighteen-month direct-competition presumption and mandatory-reformation rule, or hold that neither body of restraint law applies at all because a trailing clause assigns title rather than prohibiting employment.

The first candidate framework is Idaho's common law of restraints. If a court views a clause reaching inventions conceived after employment ends as a restraint arising from the employment relationship, Freiburger v. J-U-B Engineers, Inc. supplies the standard: such covenants are disfavored, strictly construed against the employer, and enforceable only within a three-part reasonableness test.

Restrictive covenants not to compete in an employment contract, though enforceable, are disfavored and will be strictly construed against the employer.

a covenant not to compete is reasonable only if the covenant: (1) is not greater than is necessary to protect the employer in some legitimate business interest; (2) is not unduly harsh and oppressive to the employee; and (3) is not injurious to the public.

The second candidate is the ch. 44-27 statute. Idaho Code § 44-2704(1) presumptively caps restrictions of direct competition at eighteen months absent additional consideration — and its second sentence expressly preserves protections for trade secrets and other proprietary information .

Under no circumstances shall a provision of such agreement or covenant, as set forth herein, establish a postemployment restriction of direct competition that exceeds a period of eighteen (18) months from the time of the key employee’s or key independent contractor’s termination unless consideration, in addition to employment or continued employment, is given to a key employee or key independent contractor. Nothing in this chapter shall be construed to limit a party’s ability to otherwise protect trade secrets or other information deemed proprietary or confidential.

That rule is written for restrictions of direct competition, and no court found in our review has applied it to an invention assignment. An eighteen-month ceiling on trailing assignments is therefore an analogy a court might draw, not a rule of Idaho law, and this page does not treat it as one.

If the statute did apply, Idaho's remedial posture would be unusually forgiving of overbreadth. Idaho Code § 44-2703 makes reformation mandatory — a court shall limit or modify an unreasonable covenant and enforce it as modified, the opposite posture from states whose courts refuse to rewrite overbroad covenants . By its terms, though, that rescue applies only to covenants within the chapter.

To the extent any such agreement or covenant is found to be unreasonable in any respect, a court shall limit or modify the agreement or covenant as it shall determine necessary to reflect the intent of the parties and render it reasonable in light of the circumstances in which it was made and specifically enforce the agreement or covenant as limited or modified.

The third path is that the chapter simply does not reach trailing assignments. Its operative text covers agreements that prohibit a worker from engaging in competing employment — and a trailing assignment transfers ownership of what the ex-employee invents; it does not prohibit the ex-employee from working. On that reading, a supportable one given the statutory text, the chapter is inapplicable and only the common-law backdrop remains.

A key employee or key independent contractor may enter into a written agreement or covenant that protects the employer’s legitimate business interests and prohibits the key employee or key independent contractor from engaging in employment or a line of business that is in direct competition with the employer’s business after termination of employment, and the same shall be enforceable, if the agreement or covenant is reasonable as to its duration, geographical area, type of employment or line of business, and does not impose a greater restraint than is reasonably necessary to protect the employer’s legitimate business interests.

Whichever frame a court chose, Idaho policy on employee mobility would weigh against a clause that sweeps in everything a former employee later conceives. In Northwest Bec-Corp v. Home Living Service, the Idaho Supreme Court recognized that a departing employee inevitably carries her general skills and knowledge to the next employer and that stopping that transfer would mean stopping her from working — a principle later reaffirmed in Wesco Autobody Supply, Inc. v. Ernest.

An employee will naturally take with her to a new company the skills, training, and knowledge she has acquired from her time with her previous employer. This basic transfer of information cannot be stopped, unless an employee is not allowed to pursue her livelihood by changing employers.

Sources for this answer

Case law · 2005-03-24

D.3 Freiburger v. J-U-B Engineers, Inc.

Freiburger v. J-U-B Engineers holds that restrictive covenants in employment contracts, though enforceable, are disfavored under Idaho common law and strictly construed against the employer — the baseline a trailing invention-assignment clause would face if treated as a restraint.

Restrictive covenants not to compete in an employment contract, though enforceable, are disfavored and will be strictly construed against the employer.

See Freiburger v. J-U-B Engineers, Inc., 141 Idaho 415, 111 P.3d 100 (2005).

Case law · 2005-03-24

D.1 Freiburger v. J-U-B Engineers, Inc.

Freiburger v. J-U-B Engineers states Idaho's three-part common-law reasonableness test for employment restraints — no greater than necessary for a legitimate business interest, not unduly harsh and oppressive to the employee, and not injurious to the public.

a covenant not to compete is reasonable only if the covenant: (1) is not greater than is necessary to protect the employer in some legitimate business interest; (2) is not unduly harsh and oppressive to the employee; and (3) is not injurious to the public.

See Freiburger v. J-U-B Engineers, Inc., 141 Idaho 415, 111 P.3d 100 (2005).

Primary law

D.4 Idaho Code § 44-2704

Idaho Code § 44-2704(1) presumptively caps postemployment restrictions of direct competition at eighteen months absent additional consideration, while its savings clause preserves protections for trade secrets and proprietary information — a direct-competition rule no court found in our review has applied to invention assignments.

Under no circumstances shall a provision of such agreement or covenant, as set forth herein, establish a postemployment restriction of direct competition that exceeds a period of eighteen (18) months from the time of the key employee’s or key independent contractor’s termination unless consideration, in addition to employment or continued employment, is given to a key employee or key independent contractor. Nothing in this chapter shall be construed to limit a party’s ability to otherwise protect trade secrets or other information deemed proprietary or confidential.

See Idaho Code § 44-2704(1).

Primary law

D.5 Idaho Code § 44-2703

Idaho Code § 44-2703 makes judicial reformation of an unreasonable ch. 44-27 covenant mandatory — a court shall limit or modify the covenant and specifically enforce it as modified — so within the chapter, overbroad drafting is trimmed rather than voided.

To the extent any such agreement or covenant is found to be unreasonable in any respect, a court shall limit or modify the agreement or covenant as it shall determine necessary to reflect the intent of the parties and render it reasonable in light of the circumstances in which it was made and specifically enforce the agreement or covenant as limited or modified.

See Idaho Code § 44-2703.

Primary law

D.2 Idaho Code § 44-2701

Idaho Code § 44-2701's operative text reaches covenants that prohibit a key employee or key independent contractor from engaging in employment or a line of business in direct competition with the employer — so a trailing assignment clause, which transfers title rather than prohibiting employment, arguably falls outside the chapter.

A key employee or key independent contractor may enter into a written agreement or covenant that protects the employer’s legitimate business interests and prohibits the key employee or key independent contractor from engaging in employment or a line of business that is in direct competition with the employer’s business after termination of employment, and the same shall be enforceable, if the agreement or covenant is reasonable as to its duration, geographical area, type of employment or line of business, and does not impose a greater restraint than is reasonably necessary to protect the employer’s legitimate business interests.

See Idaho Code § 44-2701.

Case law · 2002-01-18

D.6 Northwest Bec-Corp v. Home Living Service

Northwest Bec-Corp v. Home Living Service recognizes Idaho's employee-mobility principle — a departing employee naturally takes her skills, training, and knowledge to the next employer, and that transfer cannot be stopped without stopping her from working — a policy headwind for assignment clauses that sweep in everything a former employee later conceives.

An employee will naturally take with her to a new company the skills, training, and knowledge she has acquired from her time with her previous employer. This basic transfer of information cannot be stopped, unless an employee is not allowed to pursue her livelihood by changing employers.

See Northwest Bec-Corp v. Home Living Service, 136 Idaho 835, 41 P.3d 263 (2002).

Case law · 2014-03-12

D.7 Battelle Energy Alliance, LLC v. Southfork Security, Inc.

Battelle Energy Alliance v. Southfork Security (D. Idaho 2014) denied the employer summary judgment because the innovations clause was ambiguous as applied to an unpaid leave of absence, leaving invention ownership to conflicting extrinsic evidence and a jury.

The employment agreement is ambiguous as to the disputed language and the parol evidence yields conflicting inferences as to the parties’ intentions.

See Battelle Energy Alliance, LLC v. Southfork Security, Inc., 3 F. Supp. 3d 852 (D. Idaho 2014).

Practice caution

Because no Idaho authority governs trailing assignments, draft as if the strictest of the three candidate frameworks applies. Keep any holdover clause narrow, short, and tied to inventions rooted in work the employee performed or in the employer's confidential information, since a clause treated as a restraint would be disfavored, strictly construed against the employer, and tested for reasonableness. Do not treat the eighteen-month presumption as a safe harbor for invention assignments — it is a direct-competition rule that no court found in our review has extended to a trailing clause — and do not count on judicial rescue of overbroad language, because the mandatory-reformation rule applies by its terms only to covenants within ch. 44-27 . Finally, define the employment period and the clause's scope precisely: the only Idaho invention-assignment litigation found in our review denied the employer summary judgment because the clause was ambiguous as applied to an unpaid leave of absence .

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