Re:Idaho has made it easier for companies to enforce noncomp...
by karthikb on Tuesday July 18, 2017 @11:43AM
(#14797415)
But this is where equity incentives serve to align these interests. If you develop a real killer app on your spare time, but integrated into your company's product would significantly increase the valuation, retention, reduce churn, etc - then with equity (whatever the structure may be) you have an incentive to bring that work to the table. If it's pure cash, then your benefit is the same regardless of if you keep this work (done on your own time, on your own equipment, and off-site) or share it.
That's the real issue. Spolsky wrote up something on that a few years ago. It went along the lines of if you were being paid to create and build apps for a company and after hours you developed your own killer app but kept it for yourself, that wouldn't be fair to the company employing you to make great apps for them.
That makes sense. I also think any company that expects 100% of your IP during employment should pay you more than what they would pay someone to work 40 hours a week.
It doesn't make sense for niche software companies trying to take your IP for completely unrelated ideas that they would never use in their product line, particularly when you are working on your stuff after hours.