Case provides legal certainty for employers and employee inventors

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Case provides legal certainty for employers and employee inventors

Sponsored by

maiwald-logo-cropped.PNG
Hand holding light bulb and cog inside. Idea and imagination. Creative and inspiration. Innovation gears icon with network connection on metal texture background. Innovative technology industrial.

In Germany, inventions which are created by employees during the term of their employment, so-called service inventions, are subject to the Act on Employees' Inventions (ArbnErfG). According to the act, all rights in the invention are assigned to the employer if the employer does not release the invention to the employee.

In case the employer intends to discontinue an application for intellectual property rights in a service invention or to cease to maintain granted intellectual property rights in the invention before having satisfied the employee's claim for reasonable compensation, the employer must notify the employee accordingly and must assign these rights to the employee on the employee's request. If the employee does not request the assignment of these rights within three months from receiving the notification from the employer, the employer shall be entitled to abandon the above rights according to §16(2) ArbnErfG.

In 2019, the Regional Court of Mannheim was the first court which had to discuss whether §16(2) ArbnErfG not only determines the point in time the employer is entitled to abandon the rights in the invention, but whether it also precludes the employee's entitlement to request the assignment of the rights after the expiry of the three-month period. In the case, the employee requested the assignment of patent rights only after the expiry of the period under §16(2) ArbnErfG, and the employer changed its will on the abandonment of the patent subsequently. The Regional Court found that §16 (2) ArbnErfG does not determine a preclusive period, with the expiry of which the employer has a new right to decision-making or the employee can no longer assert a claim for transfer. The employee's complaint regarding the assignment of rights was thus successful in the first instance (judgment of 12 April 2019, 2 O 63/18).

The Higher Regional Court of Karlsruhe overruled the judgment of the Regional Court in a recent decision (judgment of 24 June 2020, 6 U 59/19) and confirmed the prevailing opinion in literature that the employee has no entitlement to the assignment if the employer receives the corresponding request only after the expiry of the period under §16(2) ArbnErfG. The Higher Regional Court found that a different interpretation of the provision would lead to significant uncertainties for the employer. In view of the employee's continuing claim for reasonable compensation in case the employer changes its will and the invention is used further, no disadvantages covered by the protective aim of the act could be seen for the employee.

Due to the fundamental importance of the point of law, a revision by the Federal Court of Justice (BGH) was allowed.

friedrich-anja.jpg

Anja Friedrich

more from across site and SHARED ros bottom lb

More from across our site

Plasseraud IP says it is eyeing AI and quantum computing expertise with new hire from Cabinet Netter
In the fifth episode of a podcast series celebrating the tenth anniversary of IP Inclusive, we discuss the ‘Careers in Ideas’ network and how to open access to the profession
McGuireWoods’ focussed experimentation and disciplined execution of AI tools is sharpening its IP practice
As Marshall Gerstein celebrates its 70-year anniversary, Jeffrey Sharp, managing partner, reflects on lessons that shaped both his career and the firm’s success
News of two pharma deals involving Novo Nordisk and GSK and a loss for Open AI were also among the top talking points
Howard Hogan, IP partner at Gibson Dunn, says AI deepfakes are driving lawyers to rethink how IP protects creativity and innovation
Vivien Chan joins us for our ‘Women in IP’ series to discuss gender bias in the legal profession and why the business model followed by law firms leaves little room for women leaders
Partner Jeremy Hertzog explains how his team worked through a huge amount of disclosure from Adidas and what victory means for the firm
Evarist Kameja and Hadija Juma at Bowmans explain why a new law in Tanzania marks a significant shift in IP enforcement
In the wake of controversy surrounding Banksy’s recent London mural, AJ Park’s Thomas Huthwaite and Eloise Calder delve into the challenges street artists face in protecting their works and rights
Gift this article