Basic principles of the law on inventions and their relevance for start-ups

If an employee makes an invention, both the employee and the employer typically have certain rights and obligations. The specific legal frameworks vary substantially between different countries and jurisdictions. Any start-up dealing with inventions must ensure a good understanding of the relevant regulations and implement robust procedures for satisfying the legal requirements. In Germany, the legal principles regarding employee-made inventions are codified in the Employees' Inventions Act. Its central principle is that an employer can claim the rights in a so-called service invention of an employee, but the employee is rewarded by sharing in the economic benefits of the invention. This transaction is tied to strict requirements and presents both pitfalls and opportunities to start-ups. This chapter outlines the Act and provides basic guidance for navigating its requirements. With an eye on start-ups operating internationally, a brief overview of the legal situation in selected other countries is also provided.