Behind every billion-dollar, globally influential patent portfolio owned by tech giants lies the hard work of inventors—employees whose innovations are the backbone of technological progress. This Labor Day, we recognize not only physical labor but also the intellectual contributions of employees—especially inventors, creators, and innovators. Intellectual Property (IP) law exists to acknowledge the value of human creations and ensure their rights are protected.
Employee-Created Inventions in Indonesia
Under Indonesian Patent Law (Law No. 13 of 2016), Article 12 regulates inventions created in the context of employment. It states that the patent holder of an invention produced within a working relationship is the employer, unless otherwise agreed. This applies when the invention is made using the employer’s data or facilities.
However, the law also recognizes the rights of employee inventors. It mandates that inventors be entitled to Remuneration, based on the economic benefit generated from the invention and as agreed upon between the inventor and employer.
Forms of Remuneration
The law allows flexibility in how inventors are compensated, including:
- A fixed lump-sum payment
- A percentage of profits or revenues
- A combination of fixed payment and bonuses
- Any other agreed forms of compensation
While there is no one-size-fits-all structure, employers are encouraged to implement fair compensation mechanisms that reflect the value of the invention.
Moreover, moral rights remain with the inventor. This includes the right to have their name listed in the patent certificate, preserving acknowledgment for their contribution.
Best Practices for Employers
Employers—particularly those operating in research and development, engineering, and technology sectors—should adopt best practices to effectively manage intellectual property while respecting employee rights. It is essential to include clear IP clauses in employment contracts to define the scope of patent ownership from the outset. Establishing transparent incentive and compensation programs is equally important, ensuring that inventors are fairly rewarded for their contributions. An internal invention disclosure process should also be implemented, allowing innovations to be properly reported, assessed, and protected.
Most importantly, employers should ensure that inventors are recognized and rewarded not only financially but also through acknowledgment and professional growth. These practices not only help maintain compliance with Indonesian IP law but also foster a culture of innovation, fairness, and mutual trust, essential for any IP law firm in Indonesia advising businesses on managing employee-created patents.
Guidance for Employee Inventors
For employees involved in innovation, particularly in sectors that contribute to Indonesia’s growing patent landscape, it is vital to fully understand their rights under Indonesia’s patent law. Reviewing and negotiating the intellectual property clauses in employment agreements is a key step in ensuring clarity on patent ownership and potential remuneration. If necessary, employees may consider pursuing alternative agreements that allow for shared rights or improved compensation structures. Understanding the value of one’s invention is crucial in ensuring that any compensation offered reflects its true economic potential.
Through proactive communication and legal awareness, employee inventors can better navigate their rights and obligations, ultimately leading to fairer outcomes. For those seeking assistance, consulting with an Indonesia IP consultant or patent law firm Indonesia can provide tailored guidance and help protect their intellectual contributions within the framework of intellectual property Indonesia.
Conclusion
On this Labor Day, let’s celebrate all laborers—including those whose work is rooted in intellectual creativity. A fair and transparent IP system benefits both employees and employers, nurturing innovation and long-term growth.
If you have any questions about employee patent rights or any other Intellectual Property law matters in Indonesia, feel free to contact us at ambadar@ambadar.co.id.
Written and Reviewed by Nabil Argya
