(a)        An employer may not require a provision of an employment agreement made unenforceable under N.C. Gen. Stat. § 66-57.1 as a condition of employment or continued employment. An employer, in an employment agreement, may require that the employee report all inventions developed by the employee, solely or jointly, during the term of his employment to the employer, including those asserted by the employee as nonassignable, for the purpose of determining employee or employer rights.

(b)        An employer’s ownership of an employee’s invention, discovery, or development that has or becomes vested in the employer by contract or by operation of law shall not be subject to revocation or rescission in the event of a dispute between the employer and employee concerning payment of compensation or benefits to the employee, subject to any contrary provision in the employee’s written employment agreement. The foregoing provision shall not apply where the employee proves that the employer acquired ownership of the employee’s invention, discovery, or development fraudulently.

(c)        If required by a contract between the employer and the United States or its agencies, the employer may require that full title to certain patents and inventions be in the United States. ?(1981, c. 488, s. 1; 2016-114, s. 4.)

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Terms Used In North Carolina General Statutes 66-57.2

  • Contract: A legal written agreement that becomes binding when signed.
  • Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
  • Rescission: The cancellation of budget authority previously provided by Congress. The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded. If both Houses have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation.
  • United States: shall be construed to include the said district and territories and all dependencies. See North Carolina General Statutes 12-3