As soon as an employee makes an invention or proposal for a technical improvement, the provisions of the German Act on Employees' Inventions apply. These regulations concern on the one hand the employer's potential obligation to remunerate the employee. If the regulations of the Employees' Inventions Act are ignored, serious reprecussions might ensue even including the loss of rights on the part of both the employee and the employer. Whether you are an employee wishing to exercise your rights based on the Employees' Inventions Act or an employer seeking advice on your rights and obligations, on how to organize your company's system concerned with employees' inventions, or on any other question arising in connection with the Act on Employees' Inventions - it will be our pleasure to assist you.

Who and what falls under the scope of the Employees' Inventions Act?

The Employees' Inventions Act applies to all employees in private employment and the public sector, to civil servants and members of the armed forces.

Further, the Employees' Inventions Act is applicable to inventions and proposals concerning technical improvements. Inventions within the meaning of the Employees' Inventiions Act are only those that are patentable or that can be protected as a utility model. Proposals as to technical improvements are proposals for all other technical innovations which are neither patentable nor eligible for protection as a utility model.

Which formalities have to be observed?

As a rule, the employee who has made a service invention is obliged to immediately notify his employer of his invention. This report to the employer has to be in writing, and it has to be marked as a report of an invention. The employee should also inform his employer of so-called free inventions. At the latest four months after receiving the complete report of invention does the employer have to declare to the employee whether he claims the service invention on an unrestricted or a restricted basis. If no such written declaration is made within this period of time, the invention will automatically obtain the status of a free invention which is at the employee's free disposal.

This can have negative consequences for the employer in particular if the employee leaves the company. The employee who does not report the invention to the employer risks that the employer has a claim for damages against him.

What are the effects of the employer claiming the invention?

Once the employer has effectively declared that he claims the invention without restriction, all rights to the service invention are transferred to the employer. Correspondingly, the employer who claims the service invention subject to restrictions only obtains a non-exclusive right to use the employee's invention. Attached to the employer's claiming the invention is the employer's obligation to immediately apply for grant of a protective right. The inventor is obliged to support the employer in this respect.

What remuneration is to be paid?

Generally, as soon as the employer either claims the service invention on an unrestricted basis or on a restricted basis and uses it, the employee can claim reasonable remuneration. The remuneration is not due until the employer starts using the service invention. The amount of the remuneration is determined taking into consideration, in particular, the economic value of the invention, the employee's duties and position in the company as well as the degree of involvement of the employer in the creation of the invention. "The Guidlines for the Remuneration of Employees' Inventions in Private Employment" can be consulted for non-binding guidance on the question of how to determine the remuneration. If you need assistance in this respect, it would be our pleasure to determine a reasonable remuneration for your employee's invention.