as a young developer in California Silicon Valley area, I saw companies try to create 24-7 blanket enforcement of IP rights, solely to increase control and profits; I also saw coders definitely steal company IP and try to start new companies. That State law you are referring to was passed long after this battle was underway, and I can tell you that companies definitely denied that the law existed, said it was unfair, and also paid lawyers to write contracts that tried to take employee IP anyway, and use sales tactics on new employees to accept it.