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Legal PIIA Agreement

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LEGAL PIIA AGREEMENT

This Proprietary Information and Inventions Assignment Agreement ("Agreement") is made as of Effective Date: by and between Company Name: (entity type: ) with principal place of business at (hereinafter "Company"), and Employee Name: residing at (hereinafter "Employee").

RECITALS

WHEREAS, Company is engaged in the development, marketing and support of certain products, services and technologies and maintains trade secrets, confidential information, and other proprietary information concerning its business; and

WHEREAS, Employee will be given access to or may create or contribute to the creation of Confidential Information and Inventions in the course of Employee's engagement with Company; and

WHEREAS, Company requires, as a condition of Employee's engagement, that Employee execute and deliver this Agreement to protect Company's Proprietary Information and to assign to Company certain inventions and improvements made by Employee.

NOW, THEREFORE, in consideration of Employee's engagement, access to Proprietary Information, and other good and valuable consideration, the parties agree as follows:

1. DEFINITIONS

1.1 "Confidential Information" means any non-public information disclosed by Company to Employee, whether in written, electronic, oral, visual or other form, that relates to Company's business, products, services, customers, pricing, research and development, marketing strategies, technical data, specifications, software (source and object code), processes, prototypes, financial information, forecasts, or other proprietary matters, and any analyses, compilations, studies or other documents derived therefrom.

1.2 "Invention" means any invention, discovery, improvement, concept, design, trade secret, formula, technique, process, know-how, mask work, software (including source code and object code), data, or other work of authorship, whether or not patentable or registrable under copyright or trademark laws, conceived, reduced to practice, developed or authored by Employee, solely or jointly, during the Period of Engagement that (a) relates to the business, products or research and development of Company, or (b) is developed using Company's time, materials, facilities or Confidential Information.

2. CONFIDENTIALITY OBLIGATIONS

2.1 Employee shall hold in strict confidence and shall not disclose, reveal, publish, or use for the benefit of any person other than Company any Confidential Information except as required in the ordinary course of performing Employee's duties for Company. Employee shall take all reasonable measures to protect the confidentiality and avoid the unauthorized use, disclosure or dissemination of Confidential Information.

2.2 Employee shall not copy or reproduce Confidential Information except as reasonably necessary to perform obligations for Company, and all copies shall remain the property of Company. Employee shall not remove any legend, mark or proprietary notice appearing on Confidential Information.

3. EXCLUSIONS FROM CONFIDENTIAL INFORMATION

Confidential Information does not include information that Employee can demonstrate by competent written evidence: (a) was in the public domain at the time of disclosure; (b) entered the public domain through no fault of Employee after disclosure; (c) was rightfully received by Employee from a third party without restriction; or (d) was independently developed by Employee without use of or reference to Confidential Information.

4. USE AND RETURN OF MATERIALS

4.1 All documents, records, notebooks, drawings, prototypes, samples, software, data, equipment and other physical or electronic materials containing or embodying Confidential Information shall be and remain the exclusive property of Company. Employee shall not retain copies except as authorized in writing.

4.2 Upon termination of Employee's engagement or at Company's request, Employee shall promptly deliver to Company all such materials and shall destroy or delete, at Company's direction, any Confidential Information stored in personal devices or accounts and certify in writing that such actions have been completed.

5. INVENTIONS AND ASSIGNMENT

5.1 Assignment. Employee agrees to disclose promptly in writing to Company all Inventions and hereby assigns and agrees to assign to Company, without additional consideration beyond Employee's compensation, all right, title and interest in and to any such Inventions. Employee will assist Company, both during and after the Period of Engagement, to obtain and enforce patents, copyrights, trade secrets and other intellectual property protections for such Inventions.

5.2 Disclosure of Prior Inventions. Employee represents that the Prior Inventions listed on Schedule A attached hereto constitute all inventions that Employee developed prior to employment which Employee claims ownership of and which are excluded from this Agreement. If no prior inventions are listed, Employee shall indicate "None" in Schedule A.

6. EXCEPTIONS; THIRD-PARTY RIGHTS

6.1 This Agreement does not apply to inventions for which no equipment, supplies, facilities or trade secret information of Company were used and which were developed entirely on Employee's own time, unless (a) they relate to the business of Company, or (b) they result from any work performed by Employee for Company.

6.2 If a third party claims that Employee's assignment of rights would violate Employee's obligations to such third party, Employee shall immediately notify Company in writing and provide a copy of the third-party obligation for Company's review.

7. TERM; SURVIVAL

7.1 The confidentiality and assignment obligations of Employee under this Agreement shall continue for the duration of Employee's engagement and shall survive the termination of employment for so long as Confidential Information remains proprietary to Company or as required to perfect Company's ownership of Inventions.

8. REMEDIES; INJUNCTIVE RELIEF

8.1 Employee acknowledges that monetary damages may be inadequate to remedy a breach of this Agreement and that Company shall be entitled to seek injunctive and other equitable relief, without posting a bond, in addition to any other remedies available at law or in equity, to prevent or curtail any actual or threatened breach.

9. REPRESENTATIONS

9.1 Employee represents and warrants that Employee has the full right and authority to enter into this Agreement, that Employee's performance hereunder will not breach any agreement with a third party, and that all information in Schedule A is true and complete to the best of Employee's knowledge.

10. NOTICES

All notices required or permitted under this Agreement shall be in writing and shall be deemed given when delivered personally, sent by certified mail (return receipt requested), or delivered by nationally recognized overnight courier to the addresses set forth below or to such other address as either party may specify in writing.

11. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of law principles.

12. ENTIRE AGREEMENT; SEVERABILITY

12.1 This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings and communications, both written and oral.

12.2 If any provision of this Agreement is held to be illegal, invalid or unenforceable, the remaining provisions shall remain binding and enforceable to the fullest extent permitted by law.

13. AMENDMENTS; WAIVER; COUNTERPARTS

13.1 No amendment or waiver of any provision of this Agreement shall be effective unless in writing signed by both parties. Failure to enforce any right shall not constitute a waiver of that right.

13.2 This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Signatures transmitted by electronic means shall be binding.

14. MISCELLANEOUS PROVISIONS

14.1 Remedies are cumulative. The rights and remedies provided herein are cumulative and in addition to any other rights or remedies available at law or in equity.

14.2 Employee acknowledges that Employee has read this Agreement, understands its terms, and agrees that it is fair and reasonable under the circumstances.

ADDITIONAL EMPLOYEE INFORMATION

Company Name:

By:

Date:

Employee Name:

By:

Date:

Enter text✕

What a Legal PIIA Agreement Covers

A Legal PIIA Agreement (Proprietary Information and Inventions Assignment Agreement) is a written contract used by employers to protect trade secrets, assign employee inventions, and define confidentiality obligations. It typically sets out definitions of proprietary information, inventor disclosure obligations, assignment of rights, consideration, confidentiality duration, and remedies for breach. The agreement clarifies ownership of intellectual property created during employment or using employer resources and often survives termination. Where executed electronically, the agreement can meet U.S. e-signature rules provided the transaction satisfies legal validity requirements.

Why a PIIA Agreement Matters for Employers and Creators

A clear PIIA Agreement reduces later ownership disputes, preserves company trade secret protection, and documents consent to assign inventions; it also defines confidentiality and remedies without requiring litigation.

Why a PIIA Agreement Matters for Employers and Creators

Who Commonly Executes a PIIA Agreement

Typical parties who sign or prepare PIIA Agreements and why they need them.

  • Employers and startups who need to secure employee-created IP and protect trade secrets during employment or contractor engagements.
  • Human resources and hiring managers who collect signed agreements during onboarding to document assignment and confidentiality terms.
  • Independent contractors and consultants who either assign inventions or negotiate carve-outs to protect preexisting IP and outside projects.

Choose the appropriate signer and review process based on the party type and decision authority.

Stepwise process to complete a PIIA Agreement

Follow these sequential steps to prepare, execute, and store a PIIA Agreement efficiently and compliantly.

  • 01
    Prepare Document: Use a current template reviewed by counsel.
  • 02
    Populate Fields: Enter legal names, dates, and role details accurately.
  • 03
    Authorize Signers: Confirm signatory authority and reviewer approvals.
  • 04
    Execute and Store: Obtain signatures and save executed copy with audit trail.

Online workflow settings for electronic completion

Configure these settings when using an eSignature platform to ensure secure routing and reliable audit records.

Field Configuration
Authentication Method Email link | SMS code | KBA if required
Signature Type ESIGN-compliant audit trail with time stamp
Routing Order Specify signer sequence and approvers
Notifications Enable reminders and completion notices

Technical considerations for electronic signing and sharing

Confirm platform capabilities for secure signing, identity checks, and document formats before use.

  • File formats: PDF and DOCX supported
  • Integrations: Salesforce, NetSuite, Google Workspace
  • Authentication: Email, SMS, or advanced methods

Where signed PIIA Agreements are sent and stored

Understand the common routing and retention destinations so executed agreements are available for HR, legal, and compliance reviews.

  • HR Records: Store executed copy in the employee personnel file.
  • Legal Department: Keep a legal copy for IP disputes and counsel review.
  • Cloud Archive: Save a tamper-evident PDF with audit trail.
  • Signer Copies: Provide each signer a final executed copy.

Typical timing and internal deadlines to track

Set clear internal deadlines to collect disclosures, secure signatures, and respond to invention reports to reduce later disputes.

Effective Date:

Agreement effective on the date entered by parties.

Invention Disclosure Deadline:

Employee usually must disclose inventions promptly or within company-specified days.

Onboarding Completion:

Collect signed PIIA during new-hire paperwork processing.

Periodic Review:

Update disclosures or exhibits when role or projects change.

Post-Termination Notice:

Company may request invention reports after separation.

Key milestones from offer through post-employment

A sequential milestone view helps coordinate HR, IT, and legal signoff during the life cycle of a PIIA Agreement.

01

Offer and Acceptance

Candidate receives and signs PIIA as part of offer acceptance.

02

Onboarding Execution

Signed agreement added to personnel and legal files.

03

Active Employment Updates

Require disclosure of new inventions or outside work.

04

Post-Termination Review

Employer may request invention statements or enforce assignment.

Common drafting and administration mistakes to avoid

  • Vague definitions of ‘proprietary information’ that fail to identify trade secrets or specific categories of confidential materials.
  • Overbroad assignment clauses that attempt to claim unrelated outside inventions and provoke statutory limits or employee pushback.
  • Failure to confirm signatory authority or to capture an audit trail when executing electronically, undermining enforceability.
  • Not updating agreements after role changes, mergers, or acquisitions, which can leave ownership unclear for future inventions.

Risks and legal consequences for flawed PIIA Agreements

Loss of IP Rights: Company may lose enforceable ownership
Litigation Risk: Increased chance of costly disputes
Contract Invalidity: Court may void overbroad provisions
Regulatory Exposure: Industry rules may impose penalties
Tax Consequences: Incorrect consideration reporting risk
Reputational Harm: Employee relations and hiring impact

eSignature vendor comparison for executing PIIA Agreements

Compare basic pricing and compliance capabilities when selecting an eSignature provider for PIIA Agreements; signNow is listed first per platform comparison rules.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial, no credit card Varies by vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Yes (Business Premium) Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes (BAA available) Yes Yes No No
Envelope Cap No envelope cap 100 envelopes/user/year limit Check vendor Check vendor Check vendor

Practical drafting and administration tips

Follow these best practices to make PIIA Agreements easier to administer and more likely to be enforceable in the U.S. legal environment.

Use clear, narrow definitions
Define proprietary information with specific examples and exclude public or independently developed materials to avoid overbreadth objections.
Limit assignment to work-for-hire scope
Tie assignments to inventions made within scope of employment or using company resources to respect California and similar statutes.
Maintain execution records
Preserve audit trails, signer authentication logs, and final signed PDFs to support enforceability and chain-of-evidence requirements.
Review periodically
Update templates after mergers, law changes, or new product lines and reissue where material changes affect obligations.

Real-world examples of electronic execution and use

These brief examples show how organizations use secure eSignature workflows to manage employee agreements and other HR documents.

Tech Data — Bob Dutkowsky, CEO

Tech Data standardized electronic agreements to streamline onboarding and approvals.

  • Bulk sending reduced administrative delays across teams.
  • The digital workflow improved internal customer service while shortening signature cycles and consolidating executed agreements for legal review.

Martin Properties — Tim Martin, Founder

Martin Properties moved all onboarding and agreement execution online to maintain compliance.

  • Mobile signing enabled remote execution.
  • Executed documents are stored securely with audit trails so agreements can be retrieved quickly during transactions or dispute resolution.

Who typically reviews or signs a PIIA Agreement

General Counsel — In-house Legal

Reviews templates, advises on state-specific restrictions such as California Labor Code §2870, and approves final language to align IP assignment with company strategy and compliance.

HR Director — Hiring Manager

Coordinates collection during onboarding, confirms signer identity, and routes executed agreements to personnel and legal records for retention and future reference.

Security and compliance standards relevant to electronic PIIA execution

Encryption In Transit: TLS 1.2 / 1.3
Encryption At Rest: AES-256 encryption
HIPAA Support: BAA available for covered workflows
Audit and Controls: SOC 2 Type II compliance
FDA Compliance: 21 CFR Part 11 support available
International Standards: ISO 27001 certified

Frequently asked questions about Legal PIIA Agreements

Answers to common questions about enforceability, electronic execution, state limits, and post-signature handling of PIIA Agreements.


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