Invention Assignment Laws in Louisiana: Who Owns What You Create

Federal law does not provide a unified statute governing invention ownership between employers and employees. Instead, federal courts apply state contract law and the Uniform Trade Secrets Act (UTSA), adopted in modified form across states. The federal government does recognize intellectual property rights through patents (35 U.S.C. § 101 et seq.) and copyrights (17 U.S.C. § 101 et seq.), but these statutes do not dictate whether an employer or employee owns a work product.

The default federal rule, absent a written agreement, follows the principle that an employee owns inventions created outside the scope of employment. Federal patent law grants inventors the right to seek patent protection, but does not resolve ownership disputes between employers and employees—that is determined by state law or the parties' contract.

Employers in federally regulated industries (defense, aerospace, nuclear) may have additional obligations under federal contracts to assign inventions, but this is contractual, not statutory. The key federal principle is that invention ownership is primarily a matter of state law and written agreement.

Louisiana has one of the strongest state-level protections for employee invention rights in the United States. Louisiana Revised Statutes §§ 9:2721–9:2723 establish clear limits on employer claims to employee inventions.

Under § 9:2721, an employer can claim ownership or assignment of an invention only if: (1) the invention was developed entirely on the employer's time, using the employer's equipment, supplies, facilities, or trade secrets; (2) the invention relates at the time of conception to the employer's existing or demonstrably anticipated business or research; or (3) the invention results from any work performed by the employee for the employer. Critically, Louisiana law does not permit employers to claim inventions that are the result of employee work if they are developed on the employee's own time and with the employee's own resources, unless there is a written agreement explicitly addressing this.

Section 9:2722 requires that any invention assignment agreement be presented to the employee in writing and in a manner that is conspicuous—meaning it cannot be buried in fine print or presented as part of a larger employment contract without clear notice. This is stronger than federal law, which does not mandate conspicuous presentation.

Section 9:2723 explicitly protects employee rights. An employee cannot be required to assign, or be held in breach of contract for refusing to assign, any invention that the employee developed entirely on the employee's own time, with the employee's own resources and equipment, unless the invention: (a) relates at the time of conception to the employer's existing or demonstrably anticipated business or research, or (b) results from any work performed by the employee for the employer.

The practical effect is that Louisiana law creates a presumption of employee ownership unless the employer satisfies strict conditions. Louisiana employers cannot use blanket "all inventions" clauses without limitation. The law is significantly stronger than many other states, which permit broader assignment agreements.

Louisiana law contains important exceptions and limitations on employer invention claims. First, employers cannot claim inventions developed entirely on the employee's personal time using personal resources unless the invention directly relates to the employer's existing or demonstrably anticipated business at the time of conception. This is an exception to the exception: an employer can claim an invention made on personal time if it relates to the employer's known business.

Second, non-compete and non-solicitation agreements do not affect invention assignment rights. An employer cannot use a non-compete clause to circumvent the written-notice requirement or to claim inventions the employee developed outside the scope of employment.

Third, the law does not apply to inventions conceived after employment has ended. Once an employee leaves the company, all subsequent inventions belong to the former employee, regardless of whether they relate to the employer's business.

Fourth, employers in Louisiana cannot require employees to sign overly broad invention assignment agreements as a condition of employment if those agreements violate § 9:2723. An employee's refusal to assign rights to an invention protected under § 9:2723 is not grounds for termination or breach of contract.

Fifth, if an invention assignment clause in an employment contract is found to be unconscionable—meaning it is shockingly unfair or obtained through deception—a Louisiana court may refuse to enforce it. This provides an additional employee protection beyond the statutory requirements.

Sixth, if an employer fails to provide written, conspicuous notice of invention assignment obligations, those obligations may not be enforceable. An employer's reliance on an employee handbook or oral representation is insufficient.

Step 1: Document Your Invention Process. Keep detailed records of when and where you developed the invention, what resources you used (personal computer, home equipment, employer equipment), and whether you used employer trade secrets or confidential information. Create a timeline showing dates of conception, development, and completion. Save emails, notes, lab notebooks, or code repositories that demonstrate your personal involvement and the use of personal resources. Photograph or preserve evidence of your work environment (home vs. office). Note any employer communications about whether the invention falls within your job responsibilities.

Step 2: Review Your Employment Agreement and Any Invention Assignment Agreement. Obtain a copy of your original employment offer letter, employee handbook, and any standalone invention assignment agreement you signed. Carefully read the exact language—Louisiana law requires the assignment clause to be conspicuous, meaning it must stand out visually or be presented separately. If the clause is buried in dense fine print or mixed with other terms without clear notice, this is a violation of § 9:2722. Determine whether the agreement claims all inventions, or only those related to the employer's business or made during work hours. Check the date you received this document—it must have been provided before or at hire.

Step 3: Attempt Internal Resolution. Contact your employer's human resources or legal department in writing (email is acceptable, but certified mail is better). Explain that you believe the invention is your personal property under Louisiana Revised Statutes § 9:2723 because it was developed on your personal time with personal resources and does not relate to the employer's business. Cite the specific statute. State the facts: when you developed it, where, what tools you used, and why it does not fall within your job scope. Request written acknowledgment that the company will not claim ownership or seek a patent in its name. Keep a copy of your communication.

Step 4: File a Complaint with the Louisiana Department of Labor. If the employer does not respond favorably or claims the invention anyway, file a civil complaint with the Louisiana Department of Labor's Wage and Hour Division, which handles employment contract disputes. Provide a copy of your employment agreement, your invention assignment agreement (if any), your documentation of the invention's development, and your written communication to the employer. The agency may investigate whether the employer's claim violates § 9:2721–9:2723. This step is not mandatory but creates an official record. Include: your name, address, and phone number; the employer's name and address; the date of hire; a description of the invention; and the dates and circumstances of its development.

Step 5: Consult an Employment Attorney. Because invention disputes often involve intellectual property law, contract interpretation, and potential trade secret claims, consult a Louisiana employment attorney or intellectual property attorney. An attorney can review your specific agreement, advise whether the employer's claim is enforceable under Louisiana law, and discuss whether filing a lawsuit for declaratory judgment (asking a court to declare you the owner) is prudent. If the invention has significant commercial value, the cost of legal advice is justified. Many attorneys offer free initial consultations. You can also contact the Louisiana State Bar Association's Lawyer Referral Service at (800) 947-6418.