Intellectual Property Agreements between Employers and Employees

The legal question is: Does an employee have any right to receive compensation for a service invention by provisions of the Patents Law? Can an early agreement between the employee and his employer be a remedy or a viable solution?

According to the Patents Law, an “invention” by an employee arrived at in consequence of his service and during the period of his service shall, in the absence of an agreement to the contrary, become the property of the employer and not of the employee, therefore if the employee wants to “retain” his rights to his “invention” he must be sure to have an early and very clear employment agreement mentioning his right to compensation for his invention.

There is always a question of “waiving” the rights by mutual agreement and whether the employee is able or permitted to waive his rights.

The practical question is whether an early agreement is possible between “clashing forces”. On one hand, the employer is the one “banking” and making the invention become some “practical or commercial tool” and on the other hand, this invention is solely the fruit of the employee’s ability, intelligence and competence.

If an agreement is not reached right from the very beginning, it is most likely these two “opposing” forces will find their way to the court room just to learn that this is not the “best solution” and is a very costly one.

The legal fees for such an agreement are minor compared to the cost of a long legal battle in court. An early agreement is the best solution for a future mutual understanding.

Sincerely,
 

Tzvi Szajnbrum, Attorney at Law