Dodging service invention disputes
Recent lawsuits involving remuneration claims by inventors who felt slighted by their employers have highlighted an issue companies should take note of
Issue: September 2011
Keywords (click to search):
service invention
dispute
remuneration
King & Wood
The PRC Patent Law (中华人民共和国专利法) and Implementing Rules for the PRC Patent Law (中华人民共和国专利法实施细则) (Implementing Rules) have drawn our attention on rewards and remunerations for inventors. The Patent Law stipulates that employers shall pay reasonable rewards and remunerations for inventors of a service invention and the Implementing Rules explicitly governs the amount. For purpose of encouraging technological innovation and industrialisation, the change will definitely lead a positive role in motivating employees’ initiatives and promoting the development of social productivity. However, it will also bring certain challenges to many employers in its internal compliance for reward and remuneration issues in China, especially when the Blue LED case in Japan resulted in a Rmb70 million (US$11 million) settlement.
If the huge commercial benefits acquired by the employer based on a service invention made by its employee do not correspond to the remuneration received from the employer due to the creation...
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