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 2026

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

Labelled the ‘largest law firm merger in history’, the new outfit could also spell an opportunity for US clients to capitalise on Hogan Lovells' UPC expertise
Andy Lee and Amy Brooks of Brandsmiths explain how the firm secured a win for Peppa Pig over rival children’s character Wolfoo, in a case that centred on copied audio clips
Pedro Moreira outlines proposals by INPI that look set to open a discussion regarding biological materials, extracts, sequences, genetically edited plants, and computer programs
The combined firm, which has a newly appointed IP partner in London, brings together more than 3,500 practitioners across 52 offices, with flagship hubs in Seattle, London, Sydney and New York
A host of SEP-rich law firms, both leading arguments and as intervenors, are set to feature in the UK Supreme Court’s third FRAND episode, though one ground of appeal has been settled
Law firms are investing in generative engine optimisation and boosting their online presence in the hope of gaining a new client base
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 nonprofit client could signal a sea change in how - and when - law firms enter the drug development process
Gift this article