Legislature(2021 - 2022)BELTZ 105 (TSBldg)

05/17/2022 09:00 AM Senate LABOR & COMMERCE

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Audio Topic
12:35:39 PM Start
12:36:12 PM SB232
12:50:16 PM HB132
12:58:37 PM Confirmation Hearing
03:05:03 PM HB132
03:18:10 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to a Call of the Chair --
-- Please Note Time Change --
Bills Previously Heard/Scheduled:
+= SB 232 INTELLECTUAL PROPERTY OF EMPLOYEES TELECONFERENCED
Heard & Held
+= HB 132 SCHOOL APPRENTICESHIP PROGS; TAX CREDITS TELECONFERENCED
Heard & Held
**Streamed live on AKL.tv**
           SB 232-INTELLECTUAL PROPERTY OF EMPLOYEES                                                                        
                                                                                                                                
12:36:12 PM                                                                                                                   
CHAIR  COSTELLO announced  the consideration  of SENATE  BILL NO.                                                               
232 "An Act relating to employee intellectual property."                                                                        
                                                                                                                                
She noted that  this was the first hearing and  the intention was                                                               
to hear the introduction, take  questions, hear public testimony,                                                               
and look to the will of the committee.                                                                                          
                                                                                                                                
12:36:39 PM                                                                                                                   
KATIE MCCALL, Staff, Senator Mia Costello, Alaska State                                                                         
Legislature, Juneau, Alaska, introduced SB 232 paraphrasing the                                                                 
sponsor statement that read as follows:                                                                                         
                                                                                                                                
     Senate  Bill  232  protects Alaskan  innovators.  Right                                                                    
     now, an employer can try  to claim, and profit from, an                                                                    
     employee's personal  creations. This bill  will protect                                                                    
     Alaskans'  intellectual   property.  An   employee  who                                                                    
     invents something,  from widgets to software,  on their                                                                    
     own  time  with  their  own resources,  will  keep  the                                                                    
     rights  to their  invention. The  bill also  makes sure                                                                    
     any disputes are  heard in Alaska courts,  not those of                                                                    
     other states.                                                                                                              
                                                                                                                                
     Protecting   Alaskans'   intellectual  property   helps                                                                    
     further innovation  and economic development  in Alaska                                                                    
     by demonstrating  our state's commitment  to supporting                                                                    
     those  with  new  and unique  ideas.  Implementing  the                                                                    
     protections in Senate Bill  232 would provide assurance                                                                    
     to Alaskan  employees that  their innovative  ideas are                                                                    
     their own.                                                                                                                 
                                                                                                                                
                                                                                                                                
12:37:49 PM                                                                                                                   
SENATOR STEVENS joined the committee.                                                                                           
                                                                                                                                
12:37:55 PM                                                                                                                   
MS. MCCALL presented the sectional analysis for SB 232:                                                                         
                                                                                                                                
     Sec. 1    AS  23.10.038 Page  1, Lines  3-15 &  Page 2,                                                                
     Line 1                                                                                                                 
                                                                                                                                
     Adds a new section of law which:                                                                                           
        • Prohibits employers from claiming rights to an                                                                        
          employee's intellectual property,  if the employee                                                                    
          developed an invention on  their own time, outside                                                                    
          the  scope of  employment, and  without using  the                                                                    
          employer's resources                                                                                                  
        • Invalidates any employment agreement which tries                                                                      
          to give the employer rights to an employee's                                                                          
          personal inventions                                                                                                   
        • Ensures employees have access to the Alaska                                                                           
          courts to defend their personal inventions                                                                            
                                                                                                                                
     Sec. 2  Page 2, Lines 2-5                                                                                              
                                                                                                                                
       Specifies that this Act only applies to employment                                                                       
     agreements on or after the effective date.                                                                                 
                                                                                                                                
12:38:56 PM                                                                                                                   
CHAIR COSTELLO  found no questions  and invited  Mark Billingsley                                                               
to provide his testimony                                                                                                        
                                                                                                                                
12:39:27 PM                                                                                                                   
MARK  BILLINGSLEY, Director,  Office of  Intellectual Property  &                                                               
Commercialization,    and    the     Center    for    Innovation,                                                               
Commercialization,  and  Entrepreneurship, University  of  Alaska                                                               
Fairbanks (UAF),  Fairbanks, Alaska,  stated that  he was  one of                                                               
two  practicing patent  attorneys in  the state.  His job  at the                                                               
university   was  to   implement  and   commercialize  university                                                               
research   and  development   (R&D)   and  spur   entrepreneurial                                                               
endeavors. He  offered his  perspective that there  was a  lot of                                                               
opportunity in  Alaska and that  there was  a lot of  interest in                                                               
the state  nationally, but  that it had  a long way  to go  to be                                                               
competitive with  the rest of  the US. He said  innovations don't                                                               
necessarily mean designing  new things. What's needed  here is to                                                               
take what  already exists, bring it  to Alaska, and adapt  it for                                                               
use  here.  He  pointed  out  that  Alaska  needed  programs  and                                                               
systems, economic structures, and financial tools.                                                                              
                                                                                                                                
MR.  BILLINGSLEY   said  SB  232  broadly   addresses  employment                                                               
contracts and  an employer who  claims the  intellectual property                                                               
rights of  an employee's innovation  that was developed  on their                                                               
own time, in  their own place, and using their  own resources. He                                                               
said it would be for the  courts to decide but he wonders whether                                                               
such an employment  contract would be enforceable.  He noted that                                                               
whoever drafted the bill did  a good job of recognizing potential                                                               
issues with retroactive application.                                                                                            
                                                                                                                                
12:44:16 PM                                                                                                                   
CHAIR COSTELLO  asked if the  bill addresses the situation  of an                                                               
individual  who  on  their  own  time and  in  their  own  place,                                                               
innovates some  kind of intellectual property  and commercializes                                                               
it, and their employer asserts ownership.                                                                                       
                                                                                                                                
MR. BILLINGSLEY  said the default owner  of intellectual property                                                               
is the inventor or author so  in that example the employee is the                                                               
owner, not the employer. The  main exception to that is invention                                                               
for hire, which is when  somebody is specifically hired to invent                                                               
something. Large  organizations typically have  employee language                                                               
in  the  hiring contract  that  assigns  everything the  employee                                                               
invents  that is  related  to the  scope of  their  work to  that                                                               
organization. Even if  that language is missing there  is a legal                                                               
mechanism for the employer to keep ownership of the invention.                                                                  
                                                                                                                                
CHAIR COSTELLO  asked if it  was his  opinion that SB  232 placed                                                               
the default into  statue, which was that the  employee owns their                                                               
intellectual property.                                                                                                          
                                                                                                                                
MR. BILLINGSLEY  replied the default  was that the  employee owns                                                               
their  intellectual property.  His  view of  the legislation  was                                                               
that it  sought to  overcome a contract  that tries  to undermine                                                               
the default.                                                                                                                    
                                                                                                                                
CHAIR COSTELLO thanked him for the testimony.                                                                                   
                                                                                                                                
12:48:44 PM                                                                                                                   
CHAIR COSTELLO opened  public testimony on SB  232; finding none,                                                               
she closed public testimony.                                                                                                    
                                                                                                                                
12:49:02 PM                                                                                                                   
At ease                                                                                                                         
                                                                                                                                
12:50:10 PM                                                                                                                   
CHAIR COSTELLO reconvened  the meeting and stated  she would hold                                                               
SB 232 in committee.                                                                                                            

Document Name Date/Time Subjects
HB 132 Amendment F.1.pdf SL&C 5/17/2022 9:00:00 AM
HB 132