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ARTICLE · 13 MAY 2024

New York Bans Certain Invention Assignment Clauses

Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
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Frankfurt Kurnit Klein & Selz PC

Frankfurt Kurnit Klein & Selz PC

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On September 15, 2023, New York Governor Kathy Hochul signed Senate Bill S5640 ("S5640") into law, introducing a new section 203-f to New York's labor law.

United StatesEmployment and HR
Frankfurt Kurnit Klein & Selz, PC
Frankfurt Kurnit Klein & Selz, PC
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On September 15, 2023, New York Governor Kathy Hochul signed Senate Bill S5640 ("S5640") into law, introducing a new section 203-f to New York's labor law. This legislation imposes new limitations on the use of invention assignment clauses in employment agreements within New York. Effective immediately upon signing by Governor Hochul, S5640 marks a significant shift in the state's approach to managing the balance between employee and employer intellectual property ("IP") rights. Employers should review their existing employee invention assignment agreements to ensure these agreements comport with the new law.

The Impact of S5640 on Invention Assignments

Many employers have included broad invention assignment clauses in their agreements with employees that require employees to assign all inventions created during their employment to the employer. S5640 renders unenforceable any provision that deems a New York-based employee to have assigned inventions made on their

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This post first appeared in Frankfurt Kurnit's Focus on the Data blog (www.focusonthedata.com). It provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

Originally published by the New York Legal Ethics Reporter

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

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