Out-Law / Your Daily Need-To-Know

A German court has ruled that when an employee creates a computer program he is not entitled to compensation under employee invention laws if the creation of a computer program was part of his work duties.

The German Supreme Court ruled against an employee in his claim under the German Employee’s Invention Act. The court found that his contribution amounted to a technical improvement, not an invention. Employees in the UK have similar compensation rights under the Patents Act of 1977.

If an employee in the UK invents something in the course of his employment, the rights to any patent would be owned by the employer. However, the employee is still entitled to an award of compensation if “the patent is (having regard among other things to the size and nature of the employer’s undertaking) of outstanding benefit to the employer.” The amount of compensation should represent a fair share of the benefit to the employer of the patent. To date, however, court cases on the compensation payable have tended to favour the employer.

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