Turkey: Regulating the calculation of compensation for employee inventions

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

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

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

Turkey: Regulating the calculation of compensation for employee inventions

The decree law pertaining to the protection of patent rights was in force between 1995 and 2017. As per to decree law the rules on how to determine the amount of compensation to be paid to an employee in case of full or partial claim on invention was to be regulated by a regulation. However this regulation was never prepared or enacted.

The Industrial Property Law numbered 6769 dated January 10 2017 rules employee invention and compensation matters in detail and finally provides a Regulation on Employee Inventions, Inventions Realized within Higher Education Institutions and Inventions Arisen From Projects Supported by Public Authorities. It regulates the method to determine the amount of compensation of an employee, and was entered into force on September 29 2017.

As per the Regulation, in the case the employer demands a full or partial right on the invention of an employee, a reasonable compensation and an award should be paid to the employee. The regulation provides rules about the methods to calculate the reasonable employee award. The amount of the award that will be paid in addition to the compensation should not be less than net minimum wage.

In principle the amount of compensation shall be determined by the parties via an agreement to be signed between parties, following a full or partial claim. In case of a dispute, especially if the revenue of the invention cannot be determined, compensation can be determined by comparison or as per a determinable profit of enterprise from invention or as per the reasonable amount that employer would pay, if he/she wanted to purchase the invention. In addition, the revenue of the invention can be considered equal to revenue earned from granting a licence or to revenue received from the sale of the invention or to the amount of profit received from the set off of the invention.

An important point is that the IP Law rules that after claiming a right on the work-related invention, the employer cannot refuse paying the inventor's compensation with the argument that the invention is not worth protecting. However in case an invalidation action filed against the patent is accepted by the competent Court, the employee cannot demand for compensation over his invention. The lack of clarity in the second sentence of this provision led some employers to have third parties file invalidation actions against the patent in order to get rid of the employee compensation. However the relevant rule of the Regulation clarified the issue by stating that the period until the finalisation of the invalidation action will be taken into consideration for the calculation of the employee compensation and award. Before the Regulation was enacted, some tactical invalidation actions were filed by some well known pharmaceutical companies in Turkey. All of these actions have become useless thanks to clarifying provisions of the Regulation.

erciyas.jpg

Selin Sinem Erciyas

Özge Atılgan Karakulak

Gün + Partners

Kore Şehitleri Cad. 17

Zincirlikuyu 34394

İstanbul, Turkey

Tel: + (90) (212) 354 00 00

Fax: + (90) (212) 274 20 95

gun@gun.av.tr

gun.av.tr

more from across site and SHARED ros bottom lb

More from across our site

A decision on a licensing rate payable by Warner Bros and Paramount, and a survey outlining UK businesses’ lack of IP preparation ahead of launching abroad, were among other major talking points
A fresh wave of deals highlights why investors favour IP firms and why independent outfits may soon have to rethink their strategy
King & Spalding has now hired 15 partners from Winston Taylor and legacy firm Winston & Strawn in offices spanning Texas, San Francisco, and Chicago
Firm says its work with a biotech client could signal a sea change in how - and when - law firms enter the drug development process
Evan Lazerowitz, attorney in Robinson + Cole’s bankruptcy and reorganisation group, offers key takeaways for IP interested parties in bankruptcy and insolvency proceedings
While the UK sees heavy IP rankings movement, Germany’s new tiered UPC table signals a shift from early adoption to market maturity
In an exclusive interview, Bernard Ledeboer reveals how a Consolid-backed group of firms wants to expand across Europe, invest in AI and centralise operations to compete at the top tier
Not all private equity firms are the same, so leaders at four externally backed IP firms came together to discuss the frameworks they followed and how they ensured a cultural fit
Top-tier German and Spanish firms are among the advisers on a Europe-wide copyright and licensing tussle concerning the design of the track circuit in Madrid
Partners Alex Wilson and Andreas Kramer say bigger law firm rivals don’t necessarily gain by having a wider jurisdictional reach
Gift this article