Company Passes on SW Product who owns?

[Batman5077]

New York

I am wondering what legal implications exist for a SW developer whom has developed a SW product in his free time after hours, but used some company assetts. This product is presented to the company board whom declines to invest in it. At this point the SW designer (whom is a joint owner) finds external financing and wants to launch the product.

There is a non compete clause that seems pretty restrictive citing "devotes his full time, energies, knowledge, abilities to management of the company and the development of its products..." and until 1 year after terminiation the employee is restricted from ", engaging with any competitor, directly or indirectly, as an advisor, principal, agent, partner, officer, director, stockholder, or employee in any manner to or phrase to conduct designing, writing, testing, selling, or producing microcomputer software"

I am preping this material as a case for grad school (MBA) and have determined based on my research that this is legal in New York, but will most likely not be upheld due to the extent of the text. Can anyone help me out with if this is a correct interpretation?

 

[clueless3]

Is the software in any way related or similar to or competing with the company's products?

When the SW developer works as an EMPLOYEE of the company, all of his work (while he's at work) is owned by the company. Now, if he tries to sell that software (developed using company time and/or resources), the company can go after the profit.

If he QUITS the company though, the picture is different. Even if he signed a non-compete, it may be tough for his ex-employer to go after him if his KNOWLEDGE is his surviving skill.