Employer Or Employee: Who Owns The Copyright?

The Ontario Court of Appeal recently released its decision in Nexus Solutions Inc. v. Krougly, addressing the ownership of copyright as between employer and employee and whether a work has been made “in the course of employment.”

The Court ultimately held that the employee was the owner of copyright in the software at issue, even though he had secretly developed it while employed by Nexus Solutions Inc. and the software competed with Nexus’s intellectual property. In reaching this conclusion, the Court relied on two key facts: 1) the employee had not been asked to create the software at issue; and 2) Nexus had not expended any resources in developing the software.

This case is a clear reminder for employers seeking to protect their intellectual property rights. Employers should carefully consider what work and activities are within the scope of their employees’ duties and which resources and materials are being used in the creation of new content. Further, employers should ensure