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Who Has Patent Ownership Rights – Employer or Employee?
Employers may automatically assume that they have the patent ownership rights if the invention was made at their premises, with their resources and because the person who invented the item was employed by them. It should however, be noted that there should be an express written agreement regarding the ownership rights in place. If not, the employee may own all the rights to his invention.
As such employers should setup agreements of ownership rights when employing people who invent for them. The dispute over such rights can be lengthy and rather costly. By ensuring that an express written agreement is in place, the employer will take a pro-active step to ensure that the investment into the development of a new invention will not be for nothing.
Employers don’t always realise that there may be an invention coming when they employ someone. As such, many of them never even consider setting up agreements right from the start.
Only once an invention is realised, and the potential of commercial benefits comes to light, do they realise that they stand to lose a lot of money, the trust of other employees and also the intellectual knowledge of the employee in question.
As such patent ownership rights should be spelled out at the time of hiring as part of the employment agreement.
Once the employee works at the company, it will be difficult to get a signed agreement on patent rights and sometimes the court may even reject such an agreement.
The employee has a right to know that when he or she invents something while employed at the company that the company will get the ownership rights. Whether you are the employer or employee requiring legal guidance on the issue, litigation assistance or help with the setting up or reviewing of an agreement, contact us at Smit & Van Wyk for expert legal assistance.
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