Socially Oriented Methodology Development to Determine Inventors’ Royalty

Abstract

In this article, the authors consider a socially-oriented methodology to determine the amount of author's remuneration for service inventions, service utility models and service industrial designs. The peculiarity of the methodology is that, unlike well-known methods for calculating royalties, it is not related to the employee’s salary. The authors of the article noted that according to the methodology previously used in the USSR, the amount of remuneration for the use of an invention was determined by applying empirical coefficients that take into account the positive effect achieved, the volume of use, the complexity of the problem solved and significant differences in the technical solution. At the same time, Decree of the Government of the Russian Federation No. 1848 of November 16, 2020 establishes a socially unfair way of royalty determination, relating it to the amount of the employee’s monthly remuneration and not taking into account the real value of the invention. The proposed socially fair methodology for royalty determination implies the inclusion of a cost indicator to the empirical formula for the significance of an invention, based, in particular, on a study of the average salary of qualified engineers in the particular region. The developed methodology will make itpossible to motivate engineers-inventors for active and productive inventive activity, which will contribute to the growth of the number of high-tech enterprises in the Russian Federation and increase the efficiency of their economic activities. The proposed method of calculating royalties, includes two approaches to determine the effect of a technical solution (invention or utility model) in monetary terms. The technique can also be useful to organizations involved in scientific and technical development and invention, in particular regional branches of the All-Russian Society of Inventors and Innovators, when commercializing their innovative technical solutions.