If its on your own time and unrelated to what you're doing, its yours. I think that second sentence merely protects the client if the first sentence fails to do

If its on your own time and unrelated to what you're doing, its yours. I think that second sentence merely protects the client if the first sentence fails to do so, its not saying "everything you do is ours." There is no rationale for the client owning unrelated things you do outside of work that they don't pay for. There is a reason for the client to own the things you do for them, which is what that part of the contract does. If what you do outside of work is closely related to what you do at work for the client, you are going to run into problems. ie. the Facebook debacle. Building a website selling widgets using method A and then turning around and saying "Oh, I just decided to build a website on my own selling widgets using method A as well" is going to get you into serious trouble. Working on your blog at home is not.