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The Employee Inventions Act – Making the right use of employees’ innovative achievements

Note: This article has been machine translated and may therefore contain translation errors.

A contribution from

Dr. rer. nat. Olaf Isfort

Partner, Patent Attorney

Topics and keywords

Motivated and committed employees generate innovative ideas. The company can and must make use of these in competition. This is not a new insight. However, there are a few things to consider when implementing them. On the one hand, it is important to motivate and support employees and, on the other, to know the legal framework and apply it correctly. It is essential to establish an “inventor system” that implements measures for reporting, claiming and processing inventions.

Under patent law, the inventor has the right to the patent. On the other hand, according to labor law principles, the employer should be entitled to the work results. The Employee Inventions Act resolves this contradiction. The employee has the duty to formally report his invention to the employer. The employer can (and must) then decide whether or not to transfer the rights to the invention to the company by claiming the invention. The employee is entitled to remuneration for the use of his invention in the company in addition to his remuneration if certain conditions are met. The law contains further regulations that are intended to lead to a fair balance of interests between employer and employee in connection with inventions. Many companies are unaware or insufficiently aware of all these regulations.

Recommendation for practice

Ultimately, the entire company benefits from the utilization of its employees’ inventions. However, it is not enough to look for measures to improve the motivation of employees to produce innovations. It is also necessary to implement an inventor system within the company. This includes defining processes for dealing with employee inventions. In practice, it is essential to have an appropriately prepared set of forms that can be used by employees and the relevant management level to enable the reporting of inventions and their processing in accordance with the law. This ensures that all legally regulated rights and obligations on the part of employees and employers are taken into account. Subsequent disputes about employee inventions, which can represent a considerable risk for the company, are thus avoided.

Conclusion

It is advisable to take a structured approach when implementing an employee invention system that is tailored and optimized for the respective company. This includes defining suitable processes, developing appropriate forms and training employees. External expertise can be helpful in implementing individual requirements in a targeted manner.

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