WORLD TRADE ORGANIZATION 
ORGANISATION MONDIALE DU COMMERCE 
ORGANIZACION MUNDIAL DEL COMERCIO 
Council for Trade-Related Aspects 
of Intellectual Property Rights IPIN/IIDEU/P/4 
15 November 1996 
(96-4822) 
Original: English! 
anglais/ 
ingles 
MAIN DEDICATED INTELLECTUAL PROPERTY LAWS AND REGULATIONS 
NOTIFIED UNDER ARTICLE 63.2 OF THE AGREEMENT 
Germany 
The present document reproduces the Law on Employee Inventions}, as notified by Germany 
under Article 63.2 of the Agreement (see document IP/N/lIDEU/lIRev.l). 
Conseil des aspects des droits de propriete 
inteUectuelle qui touchent au commerce 
PRINCIPALES LOIS ET REGLEMENTATIONS CONSACREES A LA 
PROPRIETE INTELLECTUELLE NOTIFIEES AU TITRE DE 
L'ARTICLE 63:2 DE L'ACCORD 
Allemagne 
Le present document contient le texte1 de la Loi relative aux inventions des employes, notifiee 
par l'Allemagne au titre de l'article 63:2 de l'Accord (voir le document IP/N/lIDEU/lIRev.l). 
Consejo de los Aspectos de los Derechos de Propiedad 
Intelectual relacionados con el Comercio 
PRINCIPALES LEYES Y REGLAMENTOS DEDICADOS A LA 
PROPIEDAD INTELECTUAL NOTIFICADOS EN VIRTUD 
DEL pARRAFO 2 DEL ARTICULO 63 DEL ACUERDO 
Alemania 
En el presente documento se reproduce la Ley de Invenciones de los Empleados 1, notificada 
por Alemania en virtud de 10 dispuesto en el parrafo 2 del articulo 63 del Acuerdo (vease el documento 
IP/N/lIDEU/lIRev.l). 
lEnglish only/anglais seulement/ingles solamente. IP IN 11 ID EU IP 14 
Page'2 
INDUSTRIAL PROPERTY 
AND COPYRIGHT -JUNE 1996 
GERMANY 
Law on Employee Invention$:;' INDUSTRIAL PROPERTY 
LAWS AND TREATIES 
(of July 25, 1957, as last amended by the Law of June 24, 1994) 
DE Chapter 1: 
Chapter ll: CONTENTS** 
Application and Definition 
Application of the Law ............... . 
Inventions .......................... . 
Technical Improvement Proposals ...... . 
Service Inventions and Free Inventions .. 
Inventions and Technical Improvement Pro­
posals Made by Employees in Private Employ­
ment 
I. Service Inventions Sec/ions 
I 
2 
3 
4 
Duty to Repon ....................... 5 
Claiming a Service Invention ........... 6 
Effect of the Claim ................... 7 
Service Inventions Becoming Free ...... 8 
Compensation for an Unlimited Claim ... 9 
Compensation for a Limited Claim ...... 10 
Directives Governing Compensation Pay-
ments ............................... 11 
Ascertaining or Fixing Compensation .... 12 
Application for Domestic Industrial Prop-
erty Protection ....................... 13 
Application for Industrial Property Protec-
tion Abroad.. . . . . . . . .. .. .. ... . . . .. . . . 14 
Mutual Rights and Duties in Acquiring 
Industrial Property Protection .......... 15 
Abandoning Industrial Property Applica-
tions or Granted Industrial Property Rights 16 
Trade Secrets ........................ 17 
2. Free Inventions 
Duty to Notify ....................... 18 
Duty to Offer ........................ 19 
3. Technical Improvement Proposals. . . . . . . 20 
4. Common Provisions 
Inventors' Consultants ................ 21 
Mandatory Applicability (Unabdingbarkei/) 22 
Inequitable Agreements ............... 23 
Duty of Secrecy ...................... 24 
Duties Arising from Employment ....... 25 
Termination of Employment. . . . . . . . . . . . 26 
Bankruptcy .......................... 27 
• Officialtille: Gesetz tiber Arbeitnehmererfindungen. 
Enlry into force: July 1. 1994. 
Source: Communication from the German authorities. 
Note: Translation by the International Bureau of WIPO. 
** Added by WIPO. 
GERMANY -Text 2-006, IP/N/lIDEU/P/4 
Page 3 
INDUSTRIAL PROPERTY 
AND COPYRIGHT -JUNE 1996 INDUSTRIAL PROPERTY 
LA \VS AND TREATIES 
5. Arbitration Proceedings 
Amicable Seltlement Procedure ........ . 
Establishment of the Arbitration Board .. . 
Membership of the Arbitration Board ... . 
Appeals [0 the Arbitration Board ....... . 
Requests for Enlargement of the Arbitra-
tion Board .......................... . 
Proceedings Before the Arbitration Board 
Settlement Proposals of the Arbitration 
Board .............................. . 
Termination of Arbitration Proceedings 
Without Result ...................... . 
Costs of Arbitration Proceedings ....... . 
6. Judicial Proceedings ................. . 
Requisites for Instituting Proceedings ... . 
Action for Reasonable Compensation ... . 
Jurisdiction ......................... . 
Chapter Ill: Inventions and Technical Improvement Propos­
als Made by Employees in Public Service. Civil 
Servants and Members of the Armed Forces 28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
Employees in Public Service ........... 40 
Civil Servants and Members of the Armed 
Forces .............................. 41 
Special Provisions for Inventions Made by 
Teachers and Assistants at Universities 42 
Chapter IV: Transitional and Final Provisions 
Inventions and Technical Improvement 
Proposals Made Prior to Entry Into Force of 
This Law............................ 43 
Pending Proceedings .................. 44 
Implementing Provisions .............. 45 
Provisions Repealed .................. 46 
Special Provisions for Berlin ........... 47 
[Repealed) . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 
Entry Into Force ............. . . . . . . . . . 49 
CHAPTER I 
APPLICATION AND DEFINITION tions that may not be the subject of a patent or of protec­
tion as a utility model. 
Application of the Law 
1. This Law applies to inventions and to technical im­
provement proposals made by employees in private em­
ployment. by employees in public service. by civil 
servants. and by members of the armed forces. 
Inventions 
2. Inventions within the meaning of this Law are only 
those which may be the subject of a patent or of protec­
tion as a utility model. 
Technical Improvement Proposals 
3. Technical improvement proposals within the mean­
ing of this Law are proposals for other technical innova-
GERMANY -Tex[ 2-006, Service Inventions and Free Inventions 
4.-( 1) Employee inventions within the meaning of 
this Law may be either tied or free. 
(2) Tied inventions (service inventions) are those 
made during the term of employment which: 
(i) either resulted from the employee's tasks in the 
private enterprise or in the public authority, 
(ii) or are essentially based upon the experience or 
activities of the enterprise or public authority. 
(3) Other inventions of an employee shall be free in­
ventions. They shall however be subject to the limita­
tions contained in Sections 18 and 19, below. 
(4) Subsections (1) to (3) shall apply mutatis mutan­
dis to inventions made by civil servants and members of 
the armed forces. 
DE IP IN 11 ID EU IP / 4 
Page 4: 
INDUSTRIAL PROPERTY 
AND COPYRIGHT -JUNE J 996 
CHAPTER II 
INVENTIONS AND TECHNICAL IMPROVEMENT 
PROPOSALS i..,1ADE BY EMPLOYEES 
IN PRIVATE EMPLOYMENT 
1. Se nice In ... entions 
Duty to Report 
5.-( 1) Any employee making a service invention 
shall be under a duty to report the invention to his em­
ployer immediately in a special written notice indicating 
that said writing constitutes the report of an invention. 
Where two or more employees have contributed [0 mak­
ing the invention. a joint notice may be filed. The em­
ployer shall inform his employee without delay and in 
writing of the date the report was received. 
(2) In the report. the employee must describe the tech­
nical problem, its solution and how he arrived at the ser­
vice invention. Any existing notes necessary for an 
understanding of the invention shall be attached. The re­
port shall include the service instructions and directions 
received by the employee. the experience and activities 
in the enterprise of which use was made, the employee's 
co-workers and the nature and extent of their contribu­
tion, and the report should underline the contribution 
which the employee making the report considers to be 
his own. 
(3) A report which does not meet the requirements of 
subsection (2) shall be deemed to be in order unless the 
employer requests further particulars within two months, 
stating the points in the report which are to be supple­
mented. To the extent necessary, he must assist the em­
ployee in supplementing the invention report. 
DE Claiming a Senice Invention 
6.-( I) An employer may claim a service invention by 
means of an unlimited or a limited claim. 
(2) Such claim shall be made in a written statement. 
addressed to the employee. It shall be made as soon as 
possible, and no later than four months from the receipt 
of a proper report (Section 5(2) and (3». 
Effect of the Claim 
7.-(1) On the receipt of a written declaration of an 
unlimited claim. all ri!!hts in the service invention shall 
pass to the employer. -
(2) On the receipt of a written declaration of a limited 
claim, a non-exclusive right to use the service invention 
shall pass to the employe;. Should an employer's right of 
use unreasonably impede an employee's further exploi­
tation of his invention, the employee may request that, I~DUSTRIAL PROPERTY 
LAWS AND TREATIES 
\vithin a period of two months. his employer either make 
an unlimited claim to the service invention or release it 
to the employee. 
(3) Dispo.<.itions of a service invention made by an 
employee before his employer has JecJared a claim. shall 
have no effect on his employer, ir.sofar as the employer's 
rights are concerned. 
Service Inventions Becoming Free 
8.-( 1) A service invention shall become free: 
(i) where the employer releases it by a written 
statement; 
(ii) where the employer makes a limited claim to it, 
subject to the employer's right to use the inven­
tion in accordance with Section 7(2); 
(iii) where the employer has not made a claim to it 
within four months upon receiving a proper in­
vention report (Section 5(2) and (3» or, for 
cases falling under Section 7(2), within [WO 
months of the request filed by his employee. 
(2) The employee may dispose of a service invention 
that has become free and the restrictions in Sections 18 
and 19 shall not apply. 
Compensation for an Unlimited Claim 
9.-( 1) The employee shall have a right to reasonable 
compensation as against his employer, as soon as the 
employer has made an unlimited claim to a service in­
vention. 
(2) In assessing compensation. due consideration 
shall in particular be given to the commercial applicabil­
ity of the service invention. the duties and position of the 
employee in the enterprise, and the enterprise's contribu­
tion to the invention. 
Compensation/or a Limited Claim 
10.-(1) The employee shall have a right to reasonable 
compensation as against his employer, as soon as the 
employer has .!TIade a limited claim to a service invention 
and has used it. Section 9(2) shall apply mutatis 
mutandis. 
(2) After having stated a cbim to a service invention. 
an employer may not. in dealing with his employee, con­
test the invention's eligibility, at the time of the claim. 
for industrial property protection unless a decision to this 
effect has been rendered by the Patent Office or a court 
of law. The employee's right to such compensation as 
becomes payable before the decision has force of law 
shall not be affected thereby. 
GERMANY -Text 2-006, INDUSTRIAL PROPERTY 
AND COPYRIGHT -JUNE 1996 
Directives GO\'erning Compensation Payments 
11. After hearing leading organizations representing 
employers and employees (in accordance with Sec­
I!on lOa of the Law on Collective Bargaining Agree­
ments), the Federal Minister of Labor shall issue 
Directives for assessing compensation. 
Ascertaining or Fixing Compensation 
12.-( 1) The nature and amount of compensation shall 
be established by agreement between the employer and 
the employee within a reasonable time after the claim to 
a service invention. 
(2) Where two or more employees have contributed to 
a service invention. compensation shall be determined 
separately for each of them. The employer must notify 
the employees of [he total amount of compensation 
a warded and of the share assigned to each inventor. 
(3) Where no compensation agreement is concluded 
within a reasonable time after a claim to a service inven­
tion was made. the employer shall fix the amount of 
compensation. giving his reasons in writing to the em­
ployee, and shall pay in accordance with his settlement. 
For unlimited claims ~o a service invention. compensa­
tion must be fixed within three months from the grant of 
the industrial property protection; for limited claims. it 
must be fixed within three months from \vhen the inven­
tion began to be used. 
(4) An employee who disagrees with the settlement 
may object thereto in writing within two months. If he 
does not object. the settlement shall be binding upon 
both parties. 
(5) Where two or more employees have contributed to 
the service invention, the settlement shall not bind any of 
them if one of them objects on the ground that his contri­
bution to the service invention has been incorrectly de­
termined. In this case. the employer may make a new 
compensation settlement for all parties. 
(6) Both the employer and the employee may require 
the other to consent to a different compensation arrange­
ment. if a substantial change has occurred in the cir­
cumstances essential to ascertaining or fixing the 
compensation. A refund of compensation payments 
already received may not be request~d. Subsections (1) 
to (5) shall not be applicable. 
Application for Domestic IlIdustrial 
Properr)' Protection 
13.-( I) An employer shall be under a duty-and he 
shall be solely entitled-to apply for domestic industrial 
property protection for a service invention reponed to 
him. \Vhere the invention is capable of patent protection, 
GERMANY -Text 2-006, IPJN J lIDEU JP /4 
Page 5 
INDUSTRIAL PROPERTY 
LA \VS AND TREATIES 
he shall apply for a patent unless, on an evaluation of the 
industrial applicability of the service invention. protec­
tion as a utility model appears more appropriate. The ap­
plication shall be filed without delay. 
(2) An employer's obligation to file such :.n applica­
tion shall terminate: 
(i) where the service invention has become free 
(Section 8(1»; 
(ii) where the employee has agreed that no applica­
tion is to be filed; 
(iii) where the conditions contained in Section 17 are 
present. 
(3) Where, after making an unlimited claim to a ser­
vice invention, an employer does not comply with his 
duty to apply for industrial property protection and also 
fails to do so within a reasonable additional period fixed 
by the employee, the employee may file an industrial 
property application for the service invention in the em­
ployer's name and at the employer's expense. 
(4) Where a service invention has become free, only 
the employee shall be entitled to apply for industrial 
property protection therefor. Should his employer al­
ready have applied for industrial property protection for 
the service invention, his rights resulting from such ap­
plication shall pass to the employee. 
Application for IlIdustrial Property 
Protection Abroad 
14.-(1) After making an unlimited claim to a service 
invention, an employer shall also be entitled to apply for 
industrial property protection abroad. 
(2) For foreign countries in which an employer does 
not desire to acquire industrial property rights. he shall 
release the service invention to the employee and shall, 
upon request, enable the employee to acquire such rights. 
The release must be effected in sufficient time for the 
employee to take advantage of the priority dates under 
international treaties in the field of industrial property. 
(3) At the time of releasing a service invention under 
subsection (2), an employer may reserve for himself a 
non-exclusive right to use the service invention in the 
foreign countries concerned. against reasonable compen­
sation. and may require the employee, also against 
reasonable compensation. to respect the employer's obli­
gations arising from contracts existing at the time of the 
invention's release, while the employee is exploiting the 
service invention released to him. 
Mutual Rights and Duties in Acquiring 
Industrial Properry Protection 
15.-( 1) Upon filing an industrial property application 
for a service invention. an employer must give his em-
DE IP IN 11 ID EU IP I 4 
Page 6 
INDUSTRIAL PROPERTY 
AND COPYRIGHT -JUNE 1996 
ployce copies of the application documents. He must 
keep his employee informed of the progress of the appli­
cation procedure and. if requested. must allow him to in­
spect the correspondence. 
(2) If requested to d.., so. the employee must assist his 
employer in acquiring the industrial property rights and 
shall be obliged to make the necessary statements. 
Abandoning Industrial Property Applications or 
Granted Industrial Property Rights 
16.-( I) Where an employer. before fully meeting his 
employee's demand for reasonable compensation. in­
tends to stop prosecuting an industrial property applica­
tion for a service invention. or to surrender an issued 
grant or registration. he must inform his employee ac­
cordingly and. at the employee's request and expense. 
must assign the rights to him and turn over to him any 
documents necessary to maintain the rights. 
DE (2) An employer shall be entitled to surrender an is­
sued grant, if his employee does not request assignment 
thereof within three months from receipt of the commu­
nication made to the employee. 
(3) At the time of making the communication pro­
vided for in subsection (1), the employer may reserve for 
himself. against payment of reasonable compensation. a 
non-exclusive right to use the service invention. 
Trade Secrets 
17.-( I) Where the legitimate interests of the enter­
prise require that a service invention reported to him 
should not be di~closed, the employer may refrain from 
applying for industrial property protection, provided that 
he acknowledges to his employee that the service inven­
tion is capable of protection. 
(2) If an employer does not acknowledge that a ser­
vice invention is capable of protection. he need not apply 
for industrial property protection if he requests the Arbi­
tration Board (Section 29) to seek an agreement on the 
service invention's eligibility for protection. 
(3) In fixing the compensation for an invention under 
subsection (I). account must also be taken of the eco­
nomic disadvantages that result for the employee due to 
the fact that industrial property protection has not been 
accorded to the service invention .. 
2. Free Inventions 
Duty [0 Notify 
18.-( I) An employee .... ho has made a free invention 
during the term of an employment contract shall notify 
his employer in writing thereof without delay. He shall I;\DUSTRIAL PROPERTY 
L\ \VS AND TREATIES 
give the employer all the details-concerning the inven­
tion and. if necessary. concerning its realization-which 
the employer may need in order to judge whether it is in 
fact a free invention. 
(2) Where the employer does not contest that the in­
vention notified to him is a free invention. by written 
declaration to the employee within three months of the 
notification. he may no longer cl:lim the invention as a 
service invention. 
(3) There shall be no obligation to notify the employer 
of a free invention if the invenlion is obviously not 
capable of being used in the employer's enterprise. 
DlIfY to Ojfer 
19.-( 1) Before exploiting a free invention further dur­
ing the term of his employment contract. an employee 
must offer his employer at least a non-exclusive right to 
use the invention on reasonable terms. if the invention 
falls within the range of the actual or planned activities 
of the employer's enterprise at the time the offer is made. 
Such offer may be submitted together with the notifica­
tion required by Section IS. 
(2) Where the employer does not accept the offer 
within three months, his prcrog<ltive shall lapse. 
(3) Where the employer states within the time provided 
by subsection (2) that he intends to acquire the rights 
offered to him. but claims that the terms offered to him are 
not reasonable. the court shall determine the terms upon a 
declaratory action by the employe. or employee. 
(4) The employer or the employee may request a new 
determination of the terms. if the circumstances essential 
to the terms agreed or fixed have changed substantially. 
3. Technical Improvement Proposals 
20.-( 1) For technical impro\·ement proposals which 
afford the employer an advant3.ged position similar to 
that obtained from an industrial property right. an em­
ployee shall be entitled to reasonable compensation from 
his employer as soon as the I:ltter exploits the proposal. 
Sections 9 and 12 shall apply JnU!olis mlltandis. 
(2) In all other cases. technic<ll improvement propos­
als shall be regulated by collective agreements or single­
plant bargaining. 
4. Common Provisions 
Inventors' COIlSU/lOlltS 
21.-(1) One or more inventors' consultants may be 
appointed in an enterprise by agreement between the 
employer and the works council. 
GER~!A?\Y -Text 2-006. INDUSTRIAL PROPERTY 
AND COPYRIGHT -JUNE 1996 
(2) The inventor's consultants shall have the task of 
helping employees draft the invention report (Section 5) 
or the notification of an invention (Section 18) and. at the 
request of the employer and employee. of participating in 
the determination of reasonable compensation. 
MandafOry Applicabiliry (Unabdingbarkeit) 
22. The provisions of this Law may not be modified 
by contract to the detriment of the employee. Agree­
ments shall, however, be permissible concerning service 
inventions after they have been reported and concerning 
free inventions and technical improvement proposals 
(Section 20C I» after their notification. 
Inequitable Agreemenrs 
23.-( 1) Agreements concerning service inventions. 
free inventions, or technical improvement proposals 
(Section 20(1» permitted by this Law, shall be null and 
void to the extent that they are manifestly inequitable. 
This provision shall apply also to compensation settle­
ments (Section 12(4». 
(2) The employer and employee may invoke the in­
equity of an agreemel1t or compensation settlement only 
if they do so, by written statement addressed to the other 
party, within six months following termination of the 
employment contract. 
Duty of Secrecy 
24.-( 1) An employer must maintain secrecy concern­
ing an employee's invention that has been reported or 
notified to him, as long as required by the legitimate 
interests of the employee. 
(2) An employee must keep a service invention secret 
as long as it has not become free (Section S( 1». 
(3) Other persons who have had knowledge of an 
invention on the basis of this Law may neither utilize 
their knowledge nor make it public. 
Duties Arising from Emplo,vment 
25. Other duties arising for the employer and employ­
ee under their employment relationship shall not be af­
fected by this Law unless the position is otherwise, due 
to the fact that an invention has become free (Sec­
tion 8( I ». 
Terminarion of Employment 
26. The rights and duties arising from this Law shall 
not be affected by termination of the employment rela­
tionship. 
GERl\lANY -Text 2-006, IP/N/1/DEU/P/4 
Page 7 
INDUSTRIAL PROPERTY 
LAWS AND TREATIES 
Bankruprcy 
27.-( 1) Where bankruptcy proceedings are instituted 
against an employer. the employee shall have a preemp­
tive right 1(' his own service inventions to which the em­
ployer has made an unlimited claim. provided the trustee 
in bankruptcy of the estate disposes of them indepen­
dently of the enterprise. 
(2) Claims by an employee to compensation for the 
employer's unlimited claim to a service invention (Sec­
tion 9), for his right to use the invention (Sections 10, 
14(3),16(3) and 19), or for his exploitation of a technical 
improvement proposal (Section 20( 1») shall rank, in 
bankruptcy proceedings against the employer, below the 
debts set forth in Section 61 (i) of the Bankruptcy Rules 
but above all other debts. If there are two or more such 
debts, they shall be paid proportionately. 
5. Arbitration Proceedings 
Amicable Seulcmclll Procedure 
28. In all disputes between employer and employee 
arising as a result of this Law, petition may be made at 
any time to the Arbitration Board. The Arbitration Board 
shall seek an amicable settlement. 
Establishment of the Arbitrarion Board 
29.-( I) The Arbitration Board shall be established 
within the Patent Office. 
(2) The Arbitration Board may meet outside its per­
manent seat. 
Membership of rhe Arbirration Board 
30.-( I) The Arbitration Board shall consist of one 
chairman or his alternate and two assessors (Beisirzer). 
(2) The chairman and his alternate shall possess the 
qualifications required for judicial office under the Law 
on the Judiciary. They shall be appointed by the Federal 
Minister of Justice for one year at the beginning of each 
calendar year. 
(3) The assessors shall possess specialknowledge in 
the technical field to which the invention or technical 
improvement proposal applies. They shall be appointed 
by the President of the Patent Office, separately for each 
case, from among the staff members or assistant mem­
bers (Hilfsmitglieder) of the Patent Office. 
(4) At the request of a party, the Arbitration Board 
shall include two other assessors, one chosen from em­
ployers and the other from employees. They shall be ap­
pointed by the President of the Patent Office, separately 
DE IPINll ID BU IP 14 
Page 8 
INDUSTRIAL PROPERTY 
AND COPYRIGHT -JUNE 1996 
for each case, from lists of proposed names. The lists 
may be put forward by the leading organizations referred 
to in Section II and also by trade unions and indepen­
dent employees' associations formed for social and pro­
fessional purposes which are not affiliated to any of the 
leading organizations. where the members of such 
unions or associations include a substantial number of 
employees from whom an inventive contribution may be 
expected due to the kind of work they are performing in 
the enterprise. 
(5) The President of the Patent Office shall appoint an 
assessor under subsection (4) from the list of names put 
forward by the organization to which the party concerned 
belongs, where the party states. before the members of 
the Board are appointed. that he is a member of that orga­
nization. 
(6) The Arbitration Board shall be under the super­
vision of its chairman; the chairman shall be under the 
supervision of the Federal ~tinister of Justice. 
Appeals (Q rhe Arbirrarion Board 
31.-(1) Appeals to the Arbitration Board shall be 
made by petition in writing. The petition shall be lodged 
in duplicate. It shall contain a brief statement of the facts 
and the name and address of the other party. 
(2) The chairman of the Arbitration Board shall trans­
mit the petition to the other party. inviting him to com­
ment in writing on the petition within a fixed period. 
DE Reqllesrs for Enlargement of the ArbitraTion Board 
32. A request for the enlargement of the Arbitration 
Board shall be submitted by the party appealing to 
the Arbitration Board at the time of lodging the peti­
tion (Section 31 (I» and by the other party within two 
weeks from the transmittal of the petition to him (Sec­
tion 31 (2». 
Proceedings Before rhe Arbitration Board 
33.-(1) Sections 1032(1). 1035 and 1036 of the Civil 
Procedure Code shall apply mutatis mlllalldis to proceed­
ings before the Arbitration Board. Section I 034( I) of the 
Civil Procedure Code -ill-ill apply mlltatis mlllalldis. save 
that the Arbitration Board may not exclude patent attor­
neys (Patentanll'olte). holders of a certificate of repre­
sentation (Erlallbllisscheinillhaber. Section 3 of the 
Second Law Amending the Industrial Property Regula­
tions and Adding Provisional Rules thereto. of July 2. 
1949). and representatives of associations falling under 
Section 11 of the Law on Labor Courts. 
(2) In all other cases. the Arbitration Board shall de­
cide on its own procedure. INDUSTRIAL PROPERTY 
L .. \WS AND TREATIES 
SetflemefIT Proposals of the Arbitration Board 
3.t.-( I) The Arbitration Board shall take its decisions 
by a majority vote. Section 196(2) of the Law on the 
Judiciary shall be applicable. 
(2) The Arbitration Board must provide the parties 
with a settlement proposal. The proposal shall be 
reasoned and signed by all the Board members. The pro­
posal must also mention the possibility of objection and 
the consequences of failure to object within the period 
prescribed. The proposal shall be notified to the parties. 
(3) A settlement proposal shall be deemed to be ac­
cepted and an agreement corresponding to its content 
shall be deemed to have been made. unless an objection 
in writing by one of the parties re:l.ches the Arbitration 
Board within one month from the notification of the pro­
posal. 
(4) Where unavoidable circumstances have prevented 
one of the parties from lodging an objection within the 
period prescribed. he shall. upon petition, be reinstated. 
The petition must be filed in writing with the Arbitration 
Board \I,'ithin one month from the moment the impedi­
ment ceased to exist. The objection must also be lodged 
within that period. The petition for reinstatement must 
state the facts relied upon and the means of substantiat­
ing them. After one year from the notification of the 
settlement proposal. reinstatement may no longer be re­
quested and an objection may no longer be lodged. 
(5) The Arbitration Board shall decide on the petition 
for reinstatement. An immediate appeal against the 
Board's decision may be lodged with the Landgericht 
having jurisdiction in the place of the petitioner's resi­
dence. in accordance with the Civil Procedure Code. 
Termination of Arbitration Proceedings 
Without Result 
35.-( I) Proceedings before the Arbitration Board 
shall terminate without result: 
(i) where the other party h3.S not submitted his 
comments within the period provided in Sec­
tion 31 (2); 
(ii) where the other party has refused to participate 
in the proceedings before the Arbitration Board; 
(iii) where a written objection h:l.S reached the Arbi­
tration Board within the period provided in Sec­
tion 34(3). 
(2) The chairman of the Arbitration Board shall in­
form the parties of the termination of the arbitration pro­
ceedings without result. 
Costs of Arbitration Proceedings 
36. Proceedings before the Arbitration Board shall 
require no fees nor payment of costs. 
GER~1ANY -Text 2-006, INDUSTRIAL PROPERTY 
AND COPYRIGHT -JUNE 1996 
6. Judicial Proceedings 
Requisites for Instituting Proceedillgs 
37.-(1) Any right or legal position (nat is governed by 
this Law may be pleaded in judicial proceedings only af­
ter proceedings have been held before the Arbitration 
Board. 
(2) This prerequisite shall not be applicable: 
(i) where the rights pleaded in the judicial proceed­
ings are based upon an agreement (Section 12, 
19, 22 or 34) or upon the allegation that the 
agreement is invalid: 
(ii) where six months have passed since the appeal 
was lodged with the Arbitration Board; 
(iii) where the employee has left the employer's en­
terprise; 
(iv) where the parties have agreed to refrain from ap­
pealing to the Arbitration Board. Such agree­
ment may only be made after the dispute 
(Section 28) has occurred. The agreement must 
be in writing. 
(3) The fact that both parties have dealt with the sub­
stance of the case orally, without relying upon the ab­
sence of any appeal t9 the Arbitration Board. shall be 
equated with an agreement under subsection (2)(iv). 
(4) The prior appeal to the Arbitration Board shall not 
be necessary in the case of an application for an attach­
ment order or for a preliminary injunction. 
(5) Judicial proceedings fol!owing an attachment or­
der or a preliminary injunction shall be admissible, and 
the restriction in subsection (l) shall not apply, \,,'here a 
party has been given a time limit for instituting proceed­
ings under Section 926 or 936 of the Civil Procedure 
Code. 
Action for Reasol/able Compensacion 
38. In a dispute as to the amount of compensation. an 
action may be brought for the payment of a reasonable 
amount to be fixed by the court. 
Jurisdiccion 
39.-( I) For all the disputes concerning employee 
inventions, exclusive jurisdiction shall, irrespective of 
the value in dispute, rest with the courts having jurisdic­
tion in patent litigation (Section 143 of the Patent Law). 
The provision governing procedure in patent litigation 
shall apply. 
(2) Disputes relating solely to claims for the payment 
of ascertained or fixed compensation for an invention are 
exempted from the application of subsection (1). 
GERMANY -Text 2-006, IP/NIl/DEU/P/4 
Page 9 
INDUSTRIAL PROPERTY 
LAWS AND TREATIES 
CHAPTER III 
INVENTIONS AND TECHNICAL I~lPROVEMENT 
PROPOSALS MADE BY E!\lPLOYEES IN PUBLIC 
SERVICE, CIVIL SERVAi\TS AND MEMBERS 
OF THE AR~lED FORCES 
Employees ill Public Scn'ice 
40. Inventions and technical improvement proposals 
made by employees in enterprises and offices of the Fed­
eral Government and state governments, community au­
thorities and other public corporations, corporate bodies 
and endowed institutions shal1 be governed by the provi­
sions relating to employees in private employment-with 
the following provisos: 
(i) instead of making a cl:lim to the service inven­
tion, the employer may claim a reasonable share 
in the proceeds arising from the service inven­
tion if this has been agreed beforehand. The 
amount of the employer's share may be the sub­
ject of prior binding agreements. In the absence 
of agreement on the amount of the share, the 
amount shall be fixed by the employer. Sec­
tion 12(3) to (6) shal1 apply mucatis mutandis; 
(ii) the regulation of technical improvement propos­
als under Section 20(2) may also be made in a 
service agreement: clauses enabling a provision 
forming part of a service agreement to be re­
placed by decision of a higher authority (Dienst­
stelle) or other office shall not be enforceable; 
(iii) restrictions on the ways of e~ploiting a service 
invention may be imposed on an employee, in 
the public interest. under a general order issued 
by the competent supreme authority (oberste 
Dienslbehorde); 
(iv) the Federal Government and the state govern­
ments sha11 also be entitled to put forward lists 
of names for the employer assessors (Sec­
tion 30(4)): 
(v) to the extent that public authorities have set up 
their o\vn arbitration boards to deal with dis­
putes under this Law. Sections 29 to 32 sha11 not 
apply. 
Civil Servallts and Members of the Armed Forces 
41. The provisions relating to employees in public 
service shal1 apply mllfacis mll{Ql/dis to inventions and 
technical improvement proposals m2de by civil servants 
and members of the armed iorces. 
Special Provisions for Im'el/li()l/s .Hade by Teachers 
and Assislanrs ac Unirersiries 
42.-( 1) In derogation from Sections 40 and 41, inven­
tions made by professors. lecturers and scientific assis-
DE IP IN 11 ID EU IP /4 
Page 10 
INDUSTRIAL PROPERTY 
AND COPYRIGHT -JUNE 1996 
tants, in their capacity as such. at universities and higher 
schools of science shall be free inventions. Sections 18, 
19 and 22 shall not be applicable. 
(2) Where the employer made available special re­
sources for the research work that led to the invention, 
the persons mentioned in subsection (I) shall notify him 
in writing of the exploitation of the invention and shall, 
upon his request, specify the kind of exploitation and the 
amount of proceeds achieved. Within three months of 
such written notification, the employer may demand a 
reasonable share of the proceeds from the invention. The 
amount of this share shall not exceed the value of the 
resources made available. 
CHAPTER IV 
TRANSITIONAL AND FINAL PROVISIONS 
Inventions alld Technical Improvement Proposals 
Made Prior to Entry Into Force of This Law 
43.-(1) As from the date of its entry into force, this 
Law shall apply to patentable employee inventions made 
since July 21, 1942, and before the effective date of this 
Law, save that the provisions of the earlier law shall still 
apply to the claims to such inventions. 
(2) This provision shall also apply to patentable em­
ployee inventions made before July 22, 1942, where the 
conditions of Section 13(1), second sentence of the Im­
plementing Regulations to the Rules on Inventions of 
Workers, of March 20, 1943 (Reichsgesetzblatl, I, 
p. 257), are satisfied and where the declaration provided 
for therein relating to unsatisfactory handling of com­
pensation had not been made by the time this Law en­
tered into force. Such declaration shall be made with the 
Arbitration Board (Section 29). The declaration may no 
longer be made if the patent granted for that invention 
has expired. The second and third sentences of this sub­
section shall not be applicable where judicial proceed­
ings relating to a demand for reasonable compensation 
had already been instituted by the effective date of this 
Law. 
DE (3) In the case of inventions that may only be pro­
tected as utility models, made since July 21, 1942, and 
before the effective date of this Law. only the provi­
sions governing arbitration proceedings and judicial 
proceedings (Sections 28 to 39) shall apply. In all other 
cases. the provisions of the earlier law shall still be 
applicable. INDUSTRIAL PROPERTY 
LAWS AND TREATIES 
(4) Section 20(1) shall not apply to technical im­
provement proposals where exploitation had begun be­
fore the effective date of this Law. 
Pending Proceedings 
44. For proceedings pending on the effective date of 
this Law, the courts having jurisdiction under the provi­
sions of the earlier law shall continue to have jurisdic­
tion. 
Implementing Provisions 
45. In consultation with the Federal Minister of 
Labor, the Federal Minister of Justice may issue the 
necessary regulations for the enlargement of the Arbi­
tration Boards (Section 30(4) and (5». In particular, he 
may specify: 
(i) the personal qualifications needed by persons 
put forward as employer or employee assessors; 
(ii) the mode of remuneration of the assessors ap­
pointed from the lists of proposed names. 
ProvisiOlls Repealed 
46. Upon entry into force of this Law, the following 
provisions are repealed to the extent that they are still in 
force: 
(i) the Regulations concerning the Treatment of In­
ventions by Workers, of July 12, 1942 (Reichs­
gesetzblalt, I, p. 466); 
(ii) the Implementing Regulations to the Rules on 
Inventions of Workers. of March 20, 1943 
(Reic/tsgeselzhlatt.1. p. 257). 
Special Provisions for Berlin 
47. 
48. [Repealed] 
Entry IlllO Force 
49. This Law shall enter-into force on October I, 
1957. 
I No longer applicable (Editor's r.ote J. 
GERMANY -Text 2-006,