In the Federal Republic of Germany, employees are entitled to reasonable remuneration from their employer for eligible inventions (patent applications, patents, utility models) made by them, provided that the employer has made use of the employee’s invention.

In particular, where the value of inventions is difficult and uncertain to estimate over extended periods due to the production programme, it is advisable to calculate and pay the remuneration regularly, for example on an annual basis. Internally, it can be difficult to determine the use of the intellectual property right within a large, complex organisation. In such cases, it is advisable to consult not only the product managers but also the inventors in parallel. As a minimum level of documentation is required prior to the calculation and payment of the inventor’s remuneration (e.g. drawings, catalogue extracts, brochures, manufacturing costs or sales prices with the quantities sold), the documentation may need to be requested from various departments within the company. It may therefore be advisable, once the intellectual property right has been in use for a certain period, to extrapolate the remuneration and propose a one-off buy-out arrangement to the inventor. The inventor is under no obligation to accept this. It is therefore a mutual gamble on the future, but one which reduces the burden on the company and provides clarity regarding financial risks.

We would be happy to assist you in this matter in cooperation with our colleague Prof. Dr. Michael Trimborn.