In the absence of an explicit contract, the courts will take the typical approach or what would be reasonably accepted for that industry. Fairness of compensation also matters. If compensation seems reasonable for a work for hire, then that standard will be applied. If the payout is fairly consistent then it could look like a salary. Engineers cannot hold up sales of companies unless they have an ownership stake. They could dispute IP ownership but even then the sale would go through usually. If majority of the voting directorship is in favour of the sale, there’s nothing to stop it.
The engineer could file a lien in that case. Perhaps that might give the buyer pause, or they could decide its easy enough to fight or pay out and may go through with it anyways. Liens do not block a sale if the buyer is willing to assume the risk.
Comments
In the absence of an explicit contract, the courts will take the typical approach or what would be reasonably accepted for that industry. Fairness of compensation also matters. If compensation seems reasonable for a work for hire, then that standard will be applied. If the payout is fairly consistent then it could look like a salary. Engineers cannot hold up sales of companies unless they have an ownership stake. They could dispute IP ownership but even then the sale would go through usually. If majority of the voting directorship is in favour of the sale, there’s nothing to stop it.
The engineer could file a lien in that case. Perhaps that might give the buyer pause, or they could decide its easy enough to fight or pay out and may go through with it anyways. Liens do not block a sale if the buyer is willing to assume the risk.