§ 66-212. Contracting requirements. - North Carolina Statutes

§66‑212.  Contracting requirements.

(a)        Each contract forinvention development services by which an invention developer undertakesinvention development services for a customer is subject to this act.  Thecontract must be in writing and the invention developer shall give a copy ofthe contract to the customer at the time the customer signs the contract.

(b)        If it is theinvention developer's normal practice to seek more than one contract inconnection with an invention, or if the invention developer normally seeks toperform services in connection with an invention in more than one phase withthe performance of each phase covered in one or more subsequent contracts, theinvention developer shall give to the customer at the time the customer signsthe first contract:

(1)        A written statementdescribing that practice; and

(2)        A written summary ofthe developer's normal terms, if any, of subsequent contracts, including theapproximate amount of the developer's normal fees or other consideration, ifany, that may be required from the customer.

(c)        For the purposes ofthis section, delivery of a promissory note, check, bill of exchange, ornegotiable instrument of any kind to the invention developer or to a thirdparty for the benefit of the invention developer irrespective of the date ordates appearing in that instrument is payment.

(d)        Notwithstanding anycontractual provisions of [to] the contrary, payment for invention developmentservices may not be required, made, or received before the fourth business day afterthe day on which the customer receives a copy of the contract for inventiondevelopment services signed by the invention developer and the customer.

(e)        Until the paymentfor invention development services is made, the parties during the contract forinvention development services have the option to terminate the contract.  Thecustomer may exercise the option by refraining from making payment to theinvention developer.  The invention developer may exercise the option toterminate by giving to the customer written notice of its exercise of theoption.  The written notice becomes effective on receipt by the customer. (1989,c. 746, s. 1; c. 770, s. 62.1(1), (2); 1991, c. 235, s. 1.)