Legality of starting a startup at FAANGM

Samsung
infomaniac

Go to company page Samsung

infomaniac
Feb 14, 2020 10 Comments

If you start a tech based side business/startup while employed at FAANG, what are the legal consequences ? Can you actually do it ? Does your FAANG employer have a high probability of claiming ownership of the startup (Pied Piper style!) ?

#faang #startup #google #microsoft #facebook #netflix

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TOP 10 Comments
  • Google / Mgmt
    saio87

    Go to company page Google Mgmt

    PRE
    Google
    saio87
    It's wildly illegal to do this
    Feb 14, 2020 3
    • Google
      eRNb06

      Go to company page Google

      eRNb06
      Wildly illegal? My reading of the Moonlighting Policy is that as long as you go through proper channels this is possible?
      Feb 14, 2020
    • New
      QFBO75

      New

      QFBO75
      LPT for OP, don't take legal advice from anonymous people on the internet
      Feb 15, 2020
  • As long as you do not use company time or resources in any way it is fully legal. That being said you will break the majority of company policies meaning that they can fire you with cause at any point if it is not approved(and I dont see any company approving it). Finally, if your company is successful you will always have the risk the you get sued and are forced to ‘prove’ you did not leverage their resources this can get dicey. Also many companies have clauses that say your ‘inventions’ are theirs and you sign this paper when you start. For sure do not file for patents or the like while still employed.

    The smart move is get your company kicked off and test your idea, the majority of them will fall on their face. If you get traction/revenue then you quit before you have built much in real ‘worth’. This really minimizes what they can come after you for to the point it isnt worth the leg work.
    Feb 14, 2020 0
  • Baker Hughes / Legal
    TRWIH2020

    Go to company page Baker Hughes Legal

    PRE
    IMAX, Tencent, Thomson Reuters
    BIO
    Commercial lawyer with experience around the world across different industries. Specializes in dispute resolution and strategic negotiation.
    TRWIH2020
    Eh, it’s not advisable (but is doable) for some of the complications mentioned above.

    There are plenty of factors:
    - What does your employment agreement say,
    - What’s the nature of your new business,
    - What’s the nature of your work and relationship with your employer,
    - Can you do it through an LLC, an offshore LLC merely operating in the US?
    - Other owners?
    - Did you use any of your work tools or information specific and unique to the company you work for in coming up with your your idea?

    It’s not “wildly illegal” but you should absolutely work with counsel to make sure you don’t blow yourself up.

    Don’t let lawyers bully you, your employer generally has no speciality to enjoin you from free enterprise.
    Feb 14, 2020 0
  • You will need to disclose it to cover your bases. If not disclosed, then yes it can get messy.
    Feb 14, 2020 0
  • Netflix
    razorlab

    Go to company page Netflix

    razorlab
    Pshh... people trade via Robinhood while taking shits at work all the time. In this market, anyone with around few hundred thousand in the market can easily rack up thousands in weekly gains. How is this okay but spending time outside of working hour starting a side business is not. What about my rental properties I actively manage. That’s also a no no? Ridiculous.
    Feb 14, 2020 1
    • I dont think either of those are the same thing.....you could argue they are investments not businesses. It's not a matter of spending time on something else. The issue is using company resources or company technology. If OP started a lemonade stand on weekends employer wouldn't care
      Feb 14, 2020