Rewarding employee inventions in corporations

What is it about?

The remuneration of employee inventions is a controversial issue in many countries. Many court litigations between unsatisfied employees and their employers occur due to the broad statutory rules. These rules order an employer to pay a reasonable remuneration for an invention made by his/her employee. However, legal rules are or too broad or too time- and cost-consuming to follow. This paper builds a practical framework, that is, a set of criteria by which a reasonable remuneration can be discussed. It does so through an in-depth analysis of nine Czech companies´ internal guidelines. Apart from the framework, the paper also suggests an optimal employee invention remuneration system. The results can be useful for IP or RD managers, business consultants, lawyers or others interested in a merged scholarly and practical view on this issue.

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