Nippon Kayaku institutes an invention compensation and reward system for the following inventions.
- 1. On the basis of the regulations of Article 35 of Patent Law, Article 11 of Utility Model Act, and Article 15 of Design Act, employees who contribute inventions-innovative and creative works at the workplace-to the company are compensated as follows.
- 1) A certain amount of money is paid to the inventors and other participants for the application of inventions.
- 2) When an invention is registered, a certain amount of money is paid to the inventor (The fulfillment of certain conditions is required for the Utility Model Act on the basis of which non-examination and registration systems are adopted.)
- 3) Compensation to past results.
- a. In the case that inventions were registered through an examination, and when inventions were practically used in Nippon Kayaku or their licensing-out was executed, an amount on the basis of a certain rate is paid to inventors according to the amount of sales or license fees.
- b. Inventors have the right to protest against an amount of payment that they disagree with.
- 2. Reward money at a specific rate is paid for a patent with significant net amount of sales or license fees in the fiscal year. The reward money determined without an upper limit is paid to the inventor on the basis of the amount of sales or license fees.
- 3. Paragraph 1 is a rule based on the law, and paragraph 2 is a rule to incentivize an invention. Regarding the patent application of another one, there is a rule related to awarding worksites or inventors that are brilliant examples for other employees. A excellent worksite, superior technique, the expectations regarding business results, contributions to earlier business results, results of the execution of rights, and details of patents significantly contributing to fiscal year business results are accepted as the object of the award in-house rule. In this rule, the target inventors or worksites are provided with awards andpayment of a certain amount of money.
