John Sivley Is Employed by Welega Corp

question 9

Essay

John Sivley is employed by Welega Corp. as a computer analyst and programmer. Welega manufactures precision testing equipment for pollution control devices. Sivley's job responsibilities involve the creation of programs and systems relating to accounting and personnel matters. Sivley is very interested in mechanical things, however. During his slow times at work, Sivley often goes into the laboratory and tinkers. In the course of this tinkering, Sivley discovered that by placing a simple but uniquely shaped twist into the intake tubing of a common air emission testing device, the accuracy of the device is greatly enhanced.
e.g., if there were an invention assignment agreement), Sivley would still have to file for the patent and then assign his rights to Welega.
This twisted tubing has the potential for great commercial success in the market for pollution control testing devices. Sivley maintains that the invention belongs exclusively to him and that he has the sole right to use and profit from this invention, including licensing others to use the invention. He intends to seek a patent on the invention. Welega maintains that the invention belongs solely to it and that it thus has the right to prevent licensing of the invention particularly since such licensing could damage its competitive position). Welega insists that it is entitled to file for the patent.
If you were the judge, how would you resolve this dispute? To whom does the invention belong? Which party is entitled to file for the patent? Explain your answer thoroughly.

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