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Joining B of D, they want all my IP?!

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baudbarf

Junior Member
I'm an employee of a sole proprietorship in California. We're incorporating soon, and I've been asked to join the board of directors. I'll be one of five, and we'll each hold 20% of voting rights, and I'll also have 15% of "asset" stock in the company.

In return for these things, all of my intellectual property will become the company's property. As it has been explained to me, all intellectual property in my posession which I can legally transfer to the company will be so transferred. Most of this IP is in the form of computer source code which I've written for my own use, but the contract doesn't limit it to that alone. Contractually, this includes finger paintings I did in kindergarten.

When I was first given these terms, I was not interested in such a sacrifice, until I was told that I would retain the right to use any of said IP for my own personal use, as long as it was not in competition with the company. So, it doesn't look like I'd really "lose" much of anything.

However, as I understand it, when I'm 80 years old and retired and I've been out of the company for 30 years; they can come knocking at my door demanding that I give them a certain piece of source code that I wrote when I was ten years old - now property of the company. Is this true?

Other terms of this agreement are that I have to avail them of up to 40 hours of work a week above my normal 40 without compensation, and that I take a $1,000 cut in my monthly pay.

What I'm really concerned about, however, is the IP. Is this legal? Is this normal? Should I be worried? Can they own my whole life now?

Thank you.
 



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