TOKYO -- The Japan Patent Office plans to obligate companies to remunerate employees for inventions made as part of their work, hoping to prevent disgruntled workers from filing lawsuits and raise motivation among engineers.

Under Japan's existing patent laws, employees own their inventions. But a corporation can buy the patent from the worker if it pays compensation that matches the value of the invention. Most large corporations have rules governing such patent transfers, but businesses still face the risk of being sued by workers over payouts.

The patent office envisions a new arrangement that would give companies ownership of patent rights but require them to pay compensation. Given concerns that inventors will receive less than now if companies are given full discretion, the patent office will draw up guidelines to encourage companies to create in-house rules for fair compensation.

The guidelines will urge labor-management talks to set remuneration rules and call for a way for inventors to file objections. The Patent Office believes such steps would help companies retain valuable talent.

Companies can only provide monetary compensation under current patent laws, but the business community is calling for more flexibility in rewarding workers. The guidelines will likely provide companies with more options, including commendations, promotions, research funding, and covering study abroad expenses.

The patent office plans to submit relevant bills to the Diet next year.

(Nikkei)