Do You Need a Patent Czar?

The question of companies paying their inventors for patents gets many answers. Many believe it is part of the job and give token awards; others supply some limited dollar awards. A few companies give substantial awards. Substantial awards are best.

Businesses deciding that patents are a part of the job don't understand the creative process. They limit themselves, since they consider that only certain individuals in particular jobs can generate patents. Patents are not part of every job description.

Those companies that give limited dollar amounts still don't understand the creative process. Good ideas worthy of patents don't come easily or as a result of corporate decree. Some good ideas may be withheld because of limited rewards to the inventor(s).

Operating a patent award system that provides substantial and flexible rewards is not easy. It will cost more to run. It definitely takes more discipline and focus. The key to a successful patent reward system is the patent czar. This can be an employee or an outside individual. That person must be empowered to make all critical decisions regarding patents and potential patents.

This czar will decide what ideas presented get converted into patent applications, which are the true inventors, and what are the rewards to those inventors. This key individual can get input from various parts of the company, but must make the final decision to go ahead with the patent application process.

Determining the true inventor is vital. Too many company department heads or other supervisors claim ownership of all ideas developed by their subordinates. Their argument is that they provided the resources and time for the invention. This is totally unfair and not consistent with patent law. The inventor is the one conceiving the ideas. Persons assisting the inventor, in reducing the idea to practice, are not inventors.

Rewards to inventors must be flexible and determined by the value of the idea to the company. This is not all that difficult. The company determines the value of patents, considered for licensing, from other businesses. A similar concept should be used for internal patents. The reward should be an initial payment when a patent application is authorized and subsequent reward when the patent issues. The second reward should be a percentage of sales or savings related to the patent.

A strong patent recognition system validates the value of invention, improves morale and gives the company the maximum number of ideas to review. All companies should review and improve their patent system to honor their inventors.