[Direct answer]In the Beijing area, after a unit is granted a patent, the employees of the unit who made the invention or design shall be given awards and reasonable remuneration in accordance with the law; if the unit refuses to issue them, the inventors may seek protection through consultation, file a complaint with the department in charge of patent work, apply for mediation, or even initiate labor arbitration or litigation. According to Article 15 of the Patent Law of the People's Republic of China, the unit granted the patent shall give awards to the inventors of the invention or design made in the course of their duties. After the patent for the invention or design is implemented, the unit shall give reasonable remuneration to the inventors according to the scope of its promotion and application and the economic benefits obtained. Whether the claim can be successful depends on proving that the patent belongs to the invention or design made in the course of their duties, that the unit has implemented or licensed it and gained profits, and that the unit has failed to fulfill its obligations to provide awards and remuneration. It is recommended to first secure the patent certificate, the labor contract, and the R&D records, and then proceed with legal action if no agreement is reached. For more details, please refer to the following link:Business and contract dispute services for enterprises.
1. Problem background and typical scenarios
After the completion of job-related inventions, many enterprises only register the patents under the company's name, but fail to pay the agreed or statutory rewards and remunerations to the inventors for a long time, which has led to disputes. Typical scenarios include: employees only discover after leaving the company that the original unit has obtained patents based on their R&D results and charged fees for external licensing; the unit has agreed on reward standards in its rules and regulations or contracts but delayed payment; the unit refuses to provide additional rewards on the grounds that "R&D is part of their regular duties"; and there are differences in the interpretation of "implementation" and "economic benefits" between the two parties. Inventors often find it difficult to assert their rights due to a lack of evidence awareness and an inadequate understanding of statutory standards. Such disputes involve both labor law and intellectual property rights, and when handling them, it is necessary to first clarify the criteria for identifying job-related inventions and calculating remunerations, which can be combined with relevant provisions of the Patent Law and other laws and regulations.Special services and other case servicesCoordinate the collection of evidence.
II. Key points of contention
The focus of the dispute lies in three aspects. Firstly, whether it constitutes a service invention: inventions completed by performing the unit's tasks or mainly using the unit's material and technical conditions belong to service inventions, and the unit enjoys patent rights but must provide rewards and compensation to the inventors; for non-service inventions, the unit has no such obligation. Secondly, the standards for rewards and compensation: where there are agreements, the rewards and compensation shall be determined according to the agreements; where there are no agreements or unclear agreements, they shall be determined in accordance with the Implementing Regulations of the Patent Law and the rules and regulations formulated by the unit in accordance with the law. After the unit implements the invention, it shall also provide compensation. Thirdly, evidence and statute of limitations: the inventors need to prove the patent attributes, the unit's profits from the implementation of the invention, and the fact that the compensation has not been paid. For matters involving the ownership of technical achievements, reference can be made to the relevant provisions.Intellectual property protection and corporate legal servicesClarify the basis of rights.
III. Professional analysis by Hengluo Lawyers
Based on practical observations in handling cross-disciplinary cases involving intellectual property and labor law, inventors often fail to protect their rights due to "incomplete evidence chains". Many inventors fail to keep records of the R&D process, patent certificates, and evidence of the unit's profit-making activities when they leave their jobs, which results in a lack of supporting evidence when claiming compensation. According to Article 15 of the Patent Law of the People's Republic of China and the Implementing Regulations of the Patent Law regarding the reward and compensation for service inventions, the unit is obligated to provide rewards from the date of the patent right announcement and to pay compensation after the patent is implemented. Hengluo Lawyers usually recommend the following: During employment, pay attention to keeping fixed R&D logs, project planning and acceptance documents; when leaving the job, require the unit to provide a written statement on patent ownership and reward arrangements; and promptly assert claims and preserve communication evidence with a lawyer's letter once the unit is found to have licensed the patent for profit-making. For cases involving cross-office protection, a seamless transition can be ensured.Special services and other case-related servicesDevelop a strategy.
IV. Practical suggestions and legal basis
The legal basis is Article 15 (Rewards and Compensation Obligations for Inventions Made in the Course of Employment) of the Patent Law of the People's Republic of China (amended on October 17, 2020 and implemented on June 1, 2021); the provisions on reward and compensation standards and calculation in the Implementing Regulations of the Patent Law of the People's Republic of China (amended on December 11, 2023 and implemented on January 20, 2024); and the provisions on arbitration statutes of the Labor Dispute Mediation and Arbitration Law of the People's Republic of China. Practical advice: First, check the labor contract, rules and regulations, and patent documents to confirm the attribution of the invention made in the course of employment; collect evidence of the unit's implementation and profit-making from licensing (such as products, annual reports, and licensing contracts); calculate the amount payable according to the agreed or statutory standards; first negotiate and send a lawyer's letter, and if unsuccessful, request mediation from the department in charge of patent work, or apply for labor arbitration or initiate litigation regarding the compensation dispute. In cases involving contract disputes, it can be combined with other relevant provisions.Business and contract dispute services for enterprisesAdvance.
5. Henglu Law Firm's Reminder
Inventors should not easily give up their rights to statutory reward compensation. The first step is to confirm whether the patent is a service invention and whether the unit has implemented or licensed it for profit; the second step is to fix evidence, especially research and development records and clues to the unit's benefits; the third step is to calculate the amount payable, and prioritize negotiation and administrative mediation to reduce costs. For units that evade responsibility by claiming "they have already left the job" or "it's their regular work", they should be refuted one by one: the obligation to provide reward compensation does not exempt from the obligation, and leaving the job does not affect the right to request compensation for the patent that has already been generated. If litigation is necessary, they can seek help from legal professionals.Intellectual property protection and corporate legal servicesEvaluate the evidence and the statute of limitations.
VI. Frequently Asked Questions
Q1: If the unit doesn't give the inventor an award, can I win the lawsuit?
The ability to obtain support depends on the evidence and legal provisions, rather than the outcome commitment. According to Article 15 of the Patent Law, the unit has an obligation to reward and compensate the inventors of the service invention; if you can prove that the patent belongs to the service invention, the unit has implemented or licensed it and gained profits, and failed to pay according to the agreed or statutory standards, it will be easier to obtain support for your claim. Conversely, if you cannot prove the attribute of the service invention or that the unit has not actually implemented it, there is a risk of losing the case. It is recommended to first obtain the patent certificate and clues about the unit's implementation, and if necessary, entrust a lawyer to issue a legal assessment before deciding whether to litigate. Never believe in unrealistic promises of victory.
Q2: If the unit doesn't give an award to the inventor, what evidence do I need to prepare?
The core evidence includes: patent certificates and annual fee payment records (to prove patent ownership and validity), labor contracts and job responsibilities descriptions (to prove that the R&D work is part of the executing unit's tasks), R&D logs and project approval documents (to prove the invention process and the employee's job responsibilities), evidence of the unit's implementation or profit-making from the invention (products, promotional materials, annual reports, license contracts, and receipt vouchers), as well as provisions on reward and compensation in regulations or contracts. The evidence should be organized around the three points of "employee invention - the unit's implementation and profit-making - non-payment". If there are missing materials, you can apply for retrieval or require the unit to provide evidence. Never give up on your claim just because the evidence is weak.
Q3: How much will it cost in legal fees and protection costs to seek compensation for the inventor's award on behalf of the unit?
If the dispute proceeds through the labor arbitration process, arbitration is free of charge, and the litigation fees are relatively low. If a civil lawsuit is directly initiated, the litigation fees shall be calculated in accordance with the Request for Payment of Litigation Fees Method and accumulated by segments based on the amount of the claim, and shall be borne by the losing party. The attorney's fees shall be determined according to the complexity of the case, the amount of the claim, and the workload, and shall be charged on a per-piece, per-hour, or percentage basis of the amount of the claim, subject to the terms of the entrustment contract. There is no unified government pricing for such fees. It is recommended to calculate the amount of the reward and compensation payable before making a claim, compare the benefits with the cost of safeguarding rights, and prioritize negotiation or administrative mediation for cases with small amounts but clear facts, so as to keep the cost within a reasonable range.
Q4: How long does it usually take to claim the inventor's reward from the unit?
The timeframe depends on the case path and circumstances. For labor arbitration applications, the process typically concludes within 45 days from the date of acceptance, and may be extended by 15 days if the case is complex. For appeals against arbitration decisions, the first-instance ordinary procedure takes six months and the summary procedure takes three months. For direct civil litigation, the timeframe is the same as above. Cases involving the verification of the unit's profit-making facts may take longer. Overall, for small claims with clear facts, the process from initiation to conclusion may take several months, while complex cases may take around a year. It is recommended to fix evidence and initiate procedures as soon as possible within the statute of limitations to avoid exceeding the arbitration time limit and affecting rights.
Q5: If the unit does not give an award to the inventor, what should I do first to handle this situation?
It is recommended to proceed in four steps: First, retrieve the patent certificate, annual fee records, and your R&D files to confirm that the patent is a service invention and is still in effect; Second, collect clues about the unit's implementation or profit-making from products, official websites, annual reports, or third-party licensing information; Third, check the incentive and compensation provisions in labor contracts and regulations, calculate the amount payable, and first claim it in writing to the unit and keep the reply; Fourth, if no agreement is reached, request mediation from the department in charge of patent work, or apply for labor arbitration or initiate litigation regarding the compensation dispute. Throughout the process, keep communication records and, if necessary, entrust lawyers to send letters and act as agents to enhance the efficiency of the claim.
This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify regional differences.
If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Intellectual property protection legal services·Beijing Henglu Law Firm
Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In case of disputes, please consult a practicing lawyer in time.