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Preston v. Marathon Oil Co.
277 P.3d 81
Wyo.
2012
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Background

  • Preston, an at-will employee of Marathon, agreed to assign all Intellectual Property to Marathon via the April 2001 Employee Agreement; no separate consideration beyond continued at-will employment was provided.
  • The IP definition covers inventions conceived during employment and within one year after termination presumed to be during employment.
  • The dispute centers on ownership of the '764 and '385 patents arising from Preston's and Smith's work at Marathon.
  • Wyoming law governs the contract, and the district court held the April 2001 agreement valid and enforceable to assign Preston's IP rights.
  • There is mixed authority nationwide on whether continued at-will employment constitutes adequate consideration for post-employment IP assignments, leading to the certified question.
  • The Wyoming Supreme Court ultimately answers yes, continued at-will employment is sufficient consideration for IP assignment.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether continued at-will employment constitutes adequate consideration for an IP assignment Preston argues additional consideration is required Marathon contends continued at-will employment is sufficient Yes; continued at-will employment is adequate consideration

Key Cases Cited

  • Hopper v. All Pet Animal Clinic, Inc., 861 P.2d 531 (Wyo. 1993) (not to subject IP assignments to separate consideration constraints like covenants)
  • Goodyear Tire & Rubber Co. v. Miller, 22 F.2d 353 (9th Cir. 1927) (continued employment sufficient to support patent assignment)
  • Harsco Corp. v. Zlotnicki, 779 F.2d 906 (3d Cir. 1985) (patent assignment differs from covenants not to compete; consideration issue analyzed)
  • MAI Basic Four, Inc. v. Basis, Inc., 880 F.2d 286 (10th Cir. 1989) (patent assignments do not require separate consideration; distinguish from restrictive covenants)
  • Hebbard v. American Zinc, Lead & Smelting Co., 161 F.2d 339 (8th Cir. 1947) (continued employment alone not sufficient for certain assignments)
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Case Details

Case Name: Preston v. Marathon Oil Co.
Court Name: Wyoming Supreme Court
Date Published: May 10, 2012
Citation: 277 P.3d 81
Docket Number: S-11-0166
Court Abbreviation: Wyo.