[nostrademons]

This isn't a new provision, and is reflected in most CA employment contracts.

The problem is clause #1 - "Relate at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably anticipated research or development of the employer". If you work for a big company - Apple, or Google, or even IBM - they tend to claim that their business is "anything computer related". And so they claim ownership over anything computer-related that you do. It's debatable whether these claims would stand up in court, but do you really want to go up against one of these company's legal department as an individual? Particularly if you're no longer employed by them and trying to get your own thing off the ground?

[dimator]

Has that clause ever been actually tested in court? I can't think of any cases where one of the big companies went after moonlighting.