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GAME DEVELOPERS CREATE VALUE every day, even if the source of that value-such as a new idea, model, code, illustration, or program-cannot be quantified or reduced to a tangible form. Intellectual property (IP) agreements, including confidentiality (non-disclosure) and invention assignment provisions, protect that value.
IP agreements establish a legal foundation for the ownership, division, and protection of these intangible assets. Commonly, these agreements dictate that an employer will own the intellectual property developed by employees or independent contractors on "company time," and that once the employee or contractor is no longer with the company, he or she still cannot use or disclose the intellectual property.
IP agreements are a key measure to protecting trade secrets. The classic example of a trade secret is the formula for Coca-Cola, but virtually any type of idea, design, or technique can rise to the level of a trade secret provided it meets three tests:
* it is kept subject to reasonable security measures, such as a non-disclosure agreement
* it isn't generally known in the industry
* it generates economic value from the fact that it is not widely-known.
In some states-not including Hollywood's IP-rich state, California-IP agreements can even restrict a former employee's ability to work for a...