1. Abstract
Nichia in 1999 and filed his first lawsuit claiming ownership to the patent
§ Japanese courts → Pre existing agreement between Nichia and the inventor → transfer his patent rights if any invention to the company
§ Nakamura, the former employee, was still eligible a reward
2. Content
Nichia in 1999 and filed his first lawsuit claiming ownership to the patent
§ Japanese courts → Pre existing agreement between Nichia and the inventor → transfer his patent rights if any invention to the company
§ Nakamura, the former employee, was still eligible a reward
2. Content
Many American companies have subsidiaries in countries whose patent laws favor employed inventors
§ An inventor's corporate salary is considered fair compensation for any inventions created during a term of employment, and also in Japan
§ Japanese Court → prevent → bonus → deemed unreasonable → profit by employer
§ An inventor's corporate salary is considered fair compensation for any inventions created during a term of employment, and also in Japan
§ Japanese Court → prevent → bonus → deemed unreasonable → profit by employer
In January 2005, Nichia settled its dispute with Shuji Nakamura over a patent for blue light-emitting diodes
§ Nakamura → awarded 20 billion yen ($190 million) by the Tokyo District Court in January 2004
§ Received a 20,000 yen bonus (less than $200) from Nichia when the firm filed for a patent in 1990
§ No clear-cut provisions in its employment agreements regarding ownership of patent rights
§ Nakamura → awarded 20 billion yen ($190 million) by the Tokyo District Court in January 2004
§ Received a 20,000 yen bonus (less than $200) from Nichia when the firm filed for a patent in 1990
§ No clear-cut provisions in its employment agreements regarding ownership of patent rights
Nakamura left Nichia in 1999 and filed his first lawsuit claiming ownership to the patent
§ Seeking "reasonable" compensation for his transfer of patent rights
§ The inventor won this round of litigation and was awarded 20 billion yen
§ Nichia subsequently appealed
§ Seeking "reasonable" compensation for his transfer of patent rights
§ The inventor won this round of litigation and was awarded 20 billion yen
§ Nichia subsequently appealed
Japanese companies have since lobbied the legislature to modify Japan's patent law
§ amount of reasonable remuneration → calculated based on agreements between companies and individual employees ↔ on court decisions or court-imposed formula
§ amount of reasonable remuneration → calculated based on agreements between companies and individual employees ↔ on court decisions or court-imposed formula
American inventor compensation laws
§ Employers are not required to give employee-inventors fair compensation for the value of their inventions beyond their salary
§ When an employee resides abroad, however, U.S. patent law may not apply
§ Employers are not required to give employee-inventors fair compensation for the value of their inventions beyond their salary
§ When an employee resides abroad, however, U.S. patent law may not apply
American companies with overseas subsidiaries should take steps to prevent foreign employee-inventor disputes
§ Firms should create clear rules regarding patent ownership and a system to provide for fair remuneration for inventions created by their employees
§ Firms should make an honest effort to fairly evaluate an invention's worth and compensate employees accordingly, documenting how the assessment was performed
§ Firms should create clear rules regarding patent ownership and a system to provide for fair remuneration for inventions created by their employees
§ Firms should make an honest effort to fairly evaluate an invention's worth and compensate employees accordingly, documenting how the assessment was performed
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