Important New Cases on Employees Rights to Inventions in Japan and Germany: Assessment for Multinationals

A special report multinationals are warned about employees rights to inventions under recent court rulings in Germany and Japan. In the report, WorldTrade Executive, Inc. describes how companies risk losing the rights to inventions developed by employees, even when contracts provide for coporate ownership of intellectual property developed by employees.

Concord, MA (PRWEB) July 15, 2004 -- Multinationals are warned about unexpected consequences arising from the evolving approach and case law in Japan and Germany to employees rights to inventions in the latest issue of Global Intellectual Property Asset Management Report.

In January this year, the Tokyo High court ordered Hitachi Ltd. to pay its former employee 162 million yen (approximately US $1.5 million) in connection with the transfer of patents for technology developed by the employee. The following day, another court ordered Nichia Corporation to pay 20 billion yen (approximately US. $189 million) for another employee invention.

These decisions came hot on the heels of a landmark Supreme Court decision which ruled in favor of a former employee of Olympus Optical Company who sued for reasonable remuneration in connection with the rights to his invention.

In Germany the invention and the proprietary rights relating to it remain the property of the employee until they are transferred to the employer, which will only happen if the employer claims the invention in return for monetary compensation. This basic rule is binding by law and cannot be contracted out of until an invention report has been submitted by an employee inventor to his or her employer. According to Global Intellectual Property Asset Management Report, multinationals need to take into account this rule when drafting outsourcing contracts which may involve the creation of patentable inventions by employees in Germany.

The current issue of Global Intellectual Property Asset Management Report also describes how many licensors and licensees of patents, know-how and computer software in Europe will need to step up their efforts to ensure that they comply with European competition law under new regulations, which became effective as of May 1, 2004.

Global Intellectual Property Asset Management Report, published monthly, contains reports from leading law and accounting firms concerning revolutionary financial and legal changes impacting the management of intellectual property worldwide.

For more information contact,
Ken Parker
WorldTrade Executive, Inc.
978-287-0302
Ken@wtexec.com
2250 Main St.
Concord, MA. 01742