The primary point of my post was that the law doesn't actually matter in practice. Regardless of if your points 1 and 2 are demonstrably false (thus the person is protected by 2870), someone trying to commercialize a side project (or a project started immediately after quitting a full time job like Shred) may very well see it die because of an aggressive previous employer.

Thus my closer: when you are a full time employee, don't do side projects that you have ambitions to commercialize.