You might be assuming the employee's side project was writing software using company equipment. I don't think the asker specified that.
I used to work with a guy who sold expensive watches as a side-job. He kept some inventory locked in his desk at work, and managed his hundreds of eBay auctions from his workstation. I doubt his employer would have been able to claim any IP there.
On a side note, I'd guess the watches probably made him 2X what he was making at work. He was a great guy and I think he ultimately ended up doing the watch thing full-time, so good for him!
I used to work with a guy who sold expensive watches as a side-job. He kept some inventory locked in his desk at work, and managed his hundreds of eBay auctions from his workstation. I doubt his employer would have been able to claim any IP there.
On a side note, I'd guess the watches probably made him 2X what he was making at work. He was a great guy and I think he ultimately ended up doing the watch thing full-time, so good for him!