Lee International

The Invention Promotion Act revised on February 6, 2024 introduced provisions for “Automatic Succession of Employee Invention to Employer” and “Material Submission Order and Confidentiality Order.”

Previously, employees were required to notify their employers upon completing an invention for the employer to proceed with the succession process.  This placed an administrative burden on the employers of being notified of all employee inventions, decide on succession, and inform employees of the succession decisions in writing.  Moreover, there was a risk of dual transfer if employees transferred their inventions to a third party before formal succession by the employer.

In the revised Act, the “Automatic Succession of Employee Invention to Employer” provision enables the seamless transfer of employee inventions to employers upon completion, particularly in cases where there is a pre-reservation succession agreement.  This ensures a more stable succession process for employee inventions.

Previously, it was difficult to gather evidence, particularly pertaining to trade secrets, in disputes over employee inventions.  The revised Invention Promotion Act introduced the “Material Submission Order” provision, allowing courts to mandate the submission of evidence, even trade secrets, to determine fair compensation in such disputes.  Additionally, a confidentiality order provision was also introduced to prevent misuse of evidence for purposes unrelated to such disputes.

With the institutional improvements regarding employee inventions, employers can anticipate to a more secure process for succeeding and utilizing employee inventions.  In addition, with the streamlining of evidence collection for fair compensation in cases of employee inventions, employees can expect enhanced protection of their rights regarding such inventions.