Abstract
In Germany, company employees who make invention during the term of their employment, so-called “service inventions”, are subject to the German Act on Employee Inventions, which regulates the rights and obligations of both employees and employers. There are statutory guidelines as to the amount of compensation the inventor should be paid. The compensation due to the inventor is based on the standard formula V = E x A, where V is the annual compensation, E is the so-called “invention value”, and A is the so-called employer’s “share factor” in the invention. First of all the invention value E is calculated. Generally this is assessed using the licence analogy. Secondly, the so-called share factor A is decided on a points’ basis. Points are awarded according to the circumstances surrounging the task which led to the invention, how the problem was solved, and the employee’s tasks and position in the company.
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