I can't speak for Canada, but in the United States it's all in your employment agreement. I work as a contractor for a Fortune 500 company, and I have a projec

I can't speak for Canada, but in the United States it's all in your employment agreement. I work as a contractor for a Fortune 500 company, and I have a project on the side. I made it clear to my contracting agency that I had a side project, and wouldn't take the position if there was a potential for conflicts as far as IP or product ownership. My agreement is pretty straight-forward. Work I do at my 9-5 belongs to the company, and work I do outside billable hours and not using company time or resources is all mine. I also have to watch what I do in relation to specs covered under NDAs, but for me those are very unrelated to the side project. Ultimately, my advice is to have a lawyer look over the employment agreements and any other things your friends have signed to ensure it's safe for them to pitch in. Good luck!