When engaging with an Employer of Record (EOR) like Remote People, understanding the ownership of intellectual property (IP) created by professionals during their assignment is crucial. This article clarifies how IP ownership is handled under the EOR setup, specifically focusing on the agreements between Remote People, the client, and the professional.
1. Overview of the T&Cs and Employment Agreement
Remote People operates under a dual agreement system:
Terms & Conditions (T&Cs): These are the contractual terms that may include an online T&Cs, a Services Agreement, or a Master Services Agreement (MSA) signed between Remote People (referred to as "the Provider") and the client.
Employment Agreement: Signed between Remote People and the professional employed on behalf of the client.
2. IP Ownership in the T&Cs
The T&Cs generally state that all intellectual property rights, including inventions, copyrights, and any other IP created by the professional during their assignment, are solely owned by the client. This ensures that, regardless of the professional's employment by Remote People, any IP they create during their work assignment belongs exclusively to the client.
3. IP Ownership in the Employment Agreement
In the employment agreement between Remote People and the professional, the intellectual property created by the professional is initially stated as belonging to Remote People. This is a standard approach to align with employment laws and ensure that the professional's output is appropriately managed within the legal framework of the employer.
4. Ceding IP Ownership to the Client
To align with the client's interests as stipulated in the T&Cs, Remote People cedes the ownership of any IP created by the professional to the client. This means that although the IP is technically owned by Remote People under the employment agreement, the rights are immediately transferred to the client as per the terms of the T&Cs.
5. Why This Structure?
This dual-structure approach is designed to:
Comply with local employment laws: Ensuring that the IP created by an employee is initially owned by the employer (Remote People) is a standard legal requirement in many jurisdictions.
Protect the client's interests: The T&Cs supersede the employment agreement regarding IP ownership, ensuring that the client retains full control and ownership of any IP created during the professional's assignment.
6. Key Takeaways
Client Ownership: Under the T&Cs, the client owns all IP created by the professional during their assignment.
Remote People's Role: Remote People initially holds the IP rights as the employer but cedes them to the client in compliance with the T&Cs.
Legal Alignment: This structure balances the requirements of local employment laws with the business needs of the client.