Invention Assignment Laws in Colorado: Who Owns What You Create

Federal law does not prohibit invention assignment agreements, but it provides no protection for employee inventors either. The default rule under federal common law is that an employer owns inventions created by an employee within the scope of employment using employer resources, even without a written agreement. However, absent a written agreement, an employee generally retains rights to inventions created on personal time using personal resources. The Defend Trade Secrets Act (18 U.S.C. § 1836) protects trade secrets but does not govern invention ownership itself.

Federal patent law (35 U.S.C.) recognizes the patent inventor as the original owner unless title is assigned by written instrument. The U.S. Patent Office requires that all patent applicants be identified correctly; false inventorship is grounds for patent unenforceability. The federal employee inventor has no statutory right to royalties or notice, and many federal employment agreements require broad invention assignment. However, federal statute does not affirmatively limit employer claims the way some states do.

Colorado Revised Statutes § 7-5-102 is significantly more protective of employees than federal common law. This statute requires that any agreement assigning employee inventions to the employer must be in writing and explicitly agreed to by the employee. Critically, § 7-5-102 provides that an employer has no claim to any invention that is developed entirely on the employee's own time, using the employee's own resources and equipment, and that does not relate to the employer's actual or demonstrably anticipated business or work performed for the employer.

Under Colorado law, even a signed blanket invention assignment agreement cannot override this statutory protection. An employer can only claim inventions that: (1) are created during work hours using company resources; (2) are directly related to the company's actual business; or (3) are created by the employee as a direct result of work performed for the employer. The statute explicitly states that a provision in an employment agreement is void if it purports to assign rights to an invention created on the employee's own time using the employee's own resources, without using any of the employer's equipment, materials, facilities, or trade secrets.

Colorado also prohibits non-compete and invention assignment clauses that are unreasonably broad under § 8-2-113. This means an employer cannot prevent an employee from inventing in their field of expertise outside of work. The state applies a reasonableness test: is the restriction necessary to protect legitimate business interests (trade secrets, confidential information, or substantial relationships with specific prospective or existing customers)? If not, the clause is unenforceable. Colorado courts have interpreted this strictly in favor of employees.

The primary exception is when an invention is created during work hours, using company resources, facilities, equipment, or materials, and relates directly to the company's actual business or demonstrably anticipated business. In this narrow case, an employer with a written agreement may claim ownership.

Another exception applies to inventions that are direct results of work performed for the employer. If you develop an invention as a direct consequence of your job duties—for example, a software engineer creating a new algorithm as part of a project assigned by the employer—the employer may own that invention if a written agreement exists.

Trade secrets and confidential information may also be subject to different rules. If an invention incorporates the employer's trade secrets or confidential information, the employer may have rights even if created on personal time, though the statute still requires a written agreement and limits those rights.

Independent contractors are generally not covered by § 7-5-102, as the statute applies to employment relationships. However, a contractor agreement should still include explicit invention assignment language if the contracting company intends to claim inventions.

Unions and collective bargaining agreements may negotiate different invention assignment terms, but such terms cannot be less protective than the statutory baseline under Colorado law. The statute applies to all employment agreements regardless of union status.

Step 1: Document Everything. Keep detailed records of when and where you created the invention. Document whether you used your personal time, personal resources (computer, equipment, software), and personal workspace. Save emails, notes, sketches, code commits, or lab notebooks with timestamps showing the work was done outside business hours. Photograph or archive the invention in its original form. If you used no company resources, create a written summary stating the date, time, location, and tools used. This contemporaneous documentation is critical because employers often dispute the facts.

Step 2: Review the Written Agreement. Carefully read any employment agreement, offer letter, employee handbook, or invention assignment clause you signed. Extract the exact language claiming ownership of inventions. Note the date you signed it and whether you actually understood and agreed to it. Determine whether the clause attempts to claim inventions created on your own time using your own resources—such language is void under § 7-5-102 regardless of your signature. If the agreement is vague or uses language like "any inventions created during the term of employment," that may be unenforceable as overbroad.

Step 3: Send a Demand Letter. Write a formal letter to your employer (or its legal department) explaining that the invention was created on your own time using your own resources and does not relate to the company's actual business. Cite Colorado Revised Statutes § 7-5-102 and assert your ownership of the invention. Provide dates, times, and a description of resources used. Request written acknowledgment of your ownership within 10 business days. Send this via certified mail or email so you have proof of delivery. Keep a copy. This step creates a paper trail and may prompt the employer to back down or negotiate.

Step 4: Internal Escalation and Demand Response. If the employer denies your ownership or threatens to claim the invention, request a meeting with your direct manager, HR, and the legal department. Bring copies of your documentation and the statute. Explain why the invention falls outside the employer's claimed scope under Colorado law. Some employers may not be familiar with § 7-5-102 and may reverse position once informed. If the employer remains intransigent, request in writing that they provide their legal basis for claiming ownership, citing the statute. Document their response. If they claim the invention relates to company business, demand specifics: what exact project, what written assignment, when was it created?

Step 5: Consult an Attorney and Consider Next Steps. Consult a Colorado employment attorney or intellectual property attorney specializing in patent law. An attorney can review your documentation, the written agreement, and the facts to assess the strength of your ownership claim. The attorney can also advise whether to file a declaratory judgment action in Colorado state court seeking a ruling that you own the invention, or whether to proceed with filing a patent application in your name with the U.S. Patent Office (you can do this unilaterally if you believe you are the true inventor). If you plan to patent the invention, do not delay—file a provisional patent application within one year of any public disclosure to preserve your rights. If the employer has already filed a patent claiming you as an inventor without your knowledge, consult an attorney immediately about correcting inventorship or challenging the patent. Consider whether a settlement or written acknowledgment from the employer is preferable to litigation.