How do I use the employee invention system?

Hello. This is the intellectual property specialist attorney at Daeryun Law Firm.

To properly utilize the employee invention system in a company, the entire process from invention reporting to compensation calculation and dispute prevention must be operated systematically, not just meeting the minimum requirements required by law.

Since employee inventions are completed by combining the creative efforts of individual employees with the company's research and development support, the company must clearly establish regulations on employee invention succession and compensation standards and announce them within the company to legally acquire rights.

First, companies must stipulate in employment contracts, work rules, work regulations, or separate employee invention compensation regulations the criteria for distinguishing between employee inventions and personal inventions, invention reporting procedures, succession decision methods, and compensation systems (application/registration/practice compensation, etc.).

At this time, if regulations are changed unfavorably to employees, the consent of the majority of employees is required, so the legality of system introduction is secured by going through prior explanation and sufficient consultation.

When an invention is completed, the employee must submit the invention report, invention specification, joint inventor share report, etc. without delay, and the company must evaluate whether the invention falls under employee invention and has business value, and notify the succession or non-succession decision in writing within the deadline.

Technical, business, and right evaluation tables and the operation of the employee invention review committee are essential elements for dispute prevention.

Compensation must be calculated by comprehensively reflecting the company's contribution, the inventor's contribution, and the economic benefits generated from the invention.

It must include not only fixed compensation such as application/registration compensation but also implementation compensation paid when product sales increase or cost reduction occurs, and disposition compensation corresponding to technology transfer/license profit distribution.

Such compensation systems must be disclosed in advance as internal regulations to prevent compensation disputes later.

Daeryun Law Firm provides one-stop support for employee invention regulation design, invention reporting/evaluation process establishment, compensation calculation system, and dispute prevention and response measures, reflecting the R&D structure and technology field characteristics by industry, so please consult anytime when needed.