Navigating Intellectual Property and Ownership Conflicts

For professionals looking to start a side hustle, it’s common to leverage expertise from their primary job. However, concerns about intellectual property (IP) and ownership conflicts can arise, especially if your side hustle overlaps with your field of employment. Many employers include clauses in employment contracts to protect their own IP, sometimes claiming rights to work you create within your area of expertise—even outside work hours.

Understanding how to separate your side hustle from your day job and protect your work is essential. This article covers key strategies for managing potential conflicts, including understanding employment agreements, setting clear boundaries, and seeking professional advice when needed.

1. Understand Intellectual Property Clauses in Your Employment Contract

Most employers include IP clauses in their employment agreements, specifying ownership rights for anything created during employment. These clauses are often designed to protect the company’s proprietary work and may extend to ideas, products, or processes developed using company resources or knowledge.

Common IP Clauses to Look For:

Work-for-Hire Clauses: These state that any work you create for the company, or sometimes in the same field, belongs to the employer, even if it’s created outside regular work hours.
Non-Compete Clauses: Non-compete clauses prevent you from working on projects or businesses that could be seen as competitive. While they vary by region, non-competes are often enforceable if the side hustle is in the same industry or market.
Confidentiality Agreements: These clauses protect proprietary company information and prevent employees from using it in other ventures. Any side hustle that overlaps with your job’s field could raise questions of confidentiality if it involves similar techniques, research, or knowledge.

By understanding these clauses, you can avoid unintentional conflicts and create boundaries that prevent overlap.

2. Avoid Using Company Resources for Side Hustle Work

Using company resources for your side hustle, even unintentionally, can lead to IP and ownership conflicts. Company resources don’t only refer to physical equipment—software, knowledge, or even strategies learned at work can also fall under this umbrella.

Tips for Keeping Resources Separate:

Work from Personal Devices: Use only your personal laptop, phone, and any software you’ve personally purchased or subscribed to for side hustle activities.
Store Files Separately: Don’t store side hustle files on company drives, cloud storage, or shared workspaces. Keep all side hustle-related documents in personal accounts.
Use Independent Software: Avoid using software provided by your company for personal business purposes. If you need certain tools, invest in your own software licenses to maintain a clear separation.

Keeping resources separate signals to both yourself and your employer that your side hustle is independent of your job, reducing the risk of IP conflicts.

3. Create Distinct Work Boundaries

Separating your side hustle from your day job in terms of resources and time is crucial for avoiding ownership disputes. Working on your side hustle outside of work hours and outside your workplace can help clarify that your business is independent and not tied to your primary employment.

Strategies for Clear Work Boundaries:

Set Specific Side Hustle Hours: Work on your side hustle only during evenings, weekends, or dedicated personal time. Avoid side hustle tasks during company hours to demonstrate that your job responsibilities remain a priority.
Use a Dedicated Workspace: If possible, create a distinct workspace at home or elsewhere that’s used exclusively for your side hustle, helping you mentally separate the two roles.
Limit Overlap in Scope: If possible, choose a side hustle that doesn’t directly align with your job responsibilities. For instance, if you work as a software developer, consider a side hustle that uses related skills but doesn’t directly compete with your primary employer’s offerings.

These boundaries can reduce the risk of IP concerns, as it becomes clear that your side hustle operates independently of your full-time role.

4. Develop Original Work and Concepts

Creating work for your side hustle that’s distinct from what you do at your day job is an effective way to prevent ownership issues. When possible, aim to build a unique business model, products, or services that don’t overlap with your employer’s existing offerings or knowledge.

How to Ensure Originality:

Focus on Unique Ideas: Avoid using ideas or processes that originated at your job, especially if they’re proprietary or confidential. Developing a business that offers something distinct can also make your side hustle more resilient.
Document Your Development Process: Keep records of how you’ve developed your side hustle independently. Save emails, notes, or initial sketches that showcase your creative process as separate from work responsibilities.
Seek Feedback from Outside Sources: Instead of relying on colleagues for input, get feedback on your side hustle from friends, mentors, or industry contacts who aren’t connected to your job.

Originality not only helps avoid conflicts but also strengthens your side hustle by ensuring it offers unique value.

5. Avoid Working in Competitive Areas

If your side hustle directly competes with your employer, you’re more likely to face conflicts, particularly if non-compete clauses are part of your employment agreement. To prevent issues, it’s generally best to choose a business area that’s distinct from your company’s services or products.

Examples of Non-Competitive Side Hustles:

Pursue Different Niches: For example, if you’re a marketing professional, consider a side hustle in a related but distinct field, like event planning or social media consulting for nonprofits, to avoid overlap.
Use Complementary Skills: If your skills are transferable, think about side hustles that draw on those skills but focus on unrelated services. A graphic designer, for example, might explore illustration work or custom art commissions rather than client-facing design projects.
Explore Non-Industry Side Hustles: Some of the best side hustles are completely unrelated to your primary field, which lowers the risk of conflict. Tutoring, freelance writing, or digital products are examples that don’t require overlap.

Choosing a non-competing side hustle helps you avoid conflicts and also provides a creative outlet different from your day-to-day work.

6. Seek Legal Advice if Needed

If you’re unsure about IP rights or want to confirm that your side hustle aligns with your employment agreement, seeking professional legal advice can provide clarity. An attorney familiar with employment law can help you understand your contract and navigate potential risks.

When to Consider Legal Advice:

If You’re in a Highly Regulated Field: Certain industries, like tech, finance, or consulting, often have stricter IP and non-compete policies, making it wise to get professional input.
If You’ve Signed Multiple Contracts: If your job involves multiple employment or confidentiality agreements, a legal review can help clarify overlapping clauses.
If Your Side Hustle Relies on Proprietary Skills: If your side hustle depends on skills or knowledge developed at your job, a lawyer can help you navigate potential conflicts and clarify ownership.

Though it’s an additional investment, legal advice can prevent costly misunderstandings and protect your work’s independence.

7. Communicate Clearly with Your Employer if Necessary

In some cases, it may be beneficial to inform your employer about your side hustle, particularly if you work in a highly collaborative or close-knit environment. Transparent communication can reduce misunderstandings and demonstrate your commitment to maintaining boundaries.

How to Communicate Effectively:

Emphasize Independence: Let your employer know that your side hustle is independent and doesn’t use company resources or overlap with your job duties.
Show That It Won’t Interfere: Reassure your employer that your side hustle doesn’t conflict with your work responsibilities and is pursued during personal time.
Seek Clarification on Any Gray Areas: If there’s any question about specific work or clauses, a direct conversation can help clear up concerns and avoid future issues.

Transparency with your employer, when appropriate, shows respect for company policies and helps foster a trusting work environment.

Wrapping Up: Protecting Your Side Hustle and Primary Role

Navigating intellectual property and ownership conflicts requires awareness, boundaries, and occasionally, professional advice. By reviewing your employment contract, keeping resources and time separate, and focusing on unique ideas, you can protect your side hustle from potential conflicts.

Taking a proactive approach helps you create a business that complements rather than competes with your primary role, allowing you to pursue both opportunities with confidence. With the right strategies, your side hustle can grow independently, providing a meaningful outlet and additional income without compromising your full-time job or professional reputation.

Reclaim Your Identity

Create Something.

21. Navigating Intellectual Property and Ownership Conflicts in Your Side Hustle