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The Twitter “Patent Hack”

Yesterday Twitter announced that they plan to amend the assignments agreements that they sign with their employees.  They call this proposed amendment the Innovator's Patent Agreement.  I've been aware of this effort inside of Twitter for a while and I like to call …

A VC Fred Wilson

Context & Ripple Effects

Twitter’s proposed employment-policy change arrives after TechRadium’s 2009 patent lawsuit against Twitter, which put the company on the receiving end of an IP claim early in its growth. The Innovator’s Patent Agreement announcement moves the question of patent use into the terms under which employees assign invention rights to the company.

First-order effects

  • Twitter’s employees and legal team become the immediate parties to amended invention-assignment terms, with the proposed IPA setting a distinct policy for patents arising from employee work.
  • The announcement publicly commits Twitter to a defined approach for handling its employee-originated patents rather than treating assignment agreements as a purely internal legal instrument.

Second-order effects

  • Twitter’s approach gives other technology employers a visible contract-level model for addressing employee concerns about how company-owned patents may be used.
  • Patent disputes involving Twitter gain a new governance context: the company’s stated employee-assignment policy becomes part of how its patent posture is evaluated by inventors, recruits, and counterparties.

Third-order effects

  • If other firms adopt comparable agreements, patent strategy may become a recruiting and retention issue as well as a litigation and portfolio-management function.
  • The move points toward employee invention agreements carrying more explicit limits on corporate patent use, particularly at companies seeking to distinguish product protection from broad patent assertion.

The trend: Technology companies are beginning to treat the governance of employee-created patents as part of their talent proposition and public IP strategy.