California Codes, Business and Professions Code - BPC, Division 8 — Special Business Regulations, Chapter 17 — Invention Development Services Contracts, Article 2 — General Regulatory Provisions, Section 22376
No contract for invention development services shall require or entail the execution of any note or series of notes by the customer which, when separately negotiated, will cut off as to third parties any right of action or defense which the customer may have against the invention developer.
Notes
Prohibits an invention-development contract from requiring or involving a customer’s execution of a note or series of notes that, if separately negotiated, would cut off against third parties any action or defense the customer could assert against the invention developer. The restriction applies regardless of contrary contract structuring and preserves those customer claims and defenses.
Use as reference
Lexinter.net | California Code, Business and Professions Code - BPC § 22376 | https://laws.lexinter.net/codes/california/business-and-professions-code/division-8/chapter-17/article-2/section-22376