Corporate IP
Employee Invention Compensation: A Practical Guide
Key tax, policy and documentation considerations for an employee-invention compensation program.
ABC
Hojun Lee, Managing Patent Attorney
· 3 min read
An employee-invention program recognizes inventors while helping a company acquire invention rights through a reliable process. A written policy alone is not enough: disclosure, the decision to acquire, compensation calculation and payment records must operate in practice.
Tax treatment depends on current law and the facts of each case. Related parties, executives and interaction with R&D tax credits should be reviewed with tax advisers.
ABC helps connect IP policies, review procedures and portfolio management to the company's actual organization and invention workflow.
PRACTICAL NOTE
Application starts with the specific facts of your business.
This article provides general information, not legal advice. Strategy depends on disclosure timing, target markets and existing rights.
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