PATENT OWNERSHIP

Protecting Inventions with Patents or Utility Model Certificates

In industrial property law, protecting an invention is a cornerstone of social welfare and technological progress. "Protecting" an invention means preventing its unauthorized use by others throughout its journey from the idea stage to its transformation into a commercial product. This protection is provided by two main documents under the Industrial Property Law No. 6769: Patents and Utility Models.

Patents: Protection with and without Examination

A patent is the government's confirmation that the technical details of an invention meet the criteria of "novelty," "inventive step," and "industrial applicability.".

• Examined Patent (20 Years): This is the strongest type of protection, where the invention has a very high technical quality, represents a creative leap, and has been examined and approved by experts as meeting all criteria.
• Unexamined Patents (Previously existed, but the SMK system now focuses on an "examined" system): Today, the system aims for a high standard of protection by prioritizing a thorough examination of each patent application.

Utility Model: Small and Fast Protection

Utility models are a "quick protection" tool designed especially for SMEs and individual inventors.

• The difference: In a utility model, the "inventive step" requirement (i.e., the invention must involve a very high level of creativity) is not sought. "Novelty" and "industrial applicability" are sufficient.
• The duration is 10 years.
• Advantage: The process is much faster and less expensive than patenting. It is ideal especially for mechanical improvements, minor modifications, or technical functions of industrial designs.

Why Two Different Systems?

Not every invention needs to be "groundbreaking" (patent-worthy). Sometimes, modifying a part of an existing machine to make it 10% more efficient creates significant value in the technical world. Utility models ensure that such inventions, which may not have the same high "creativity threshold" as patents but offer technical solutions, are not lost, but are registered and brought into the economy.

 Invention and Patent Rights

Patent rights are one of the strongest bastions of "intellectual property" in the modern legal system. The transformation of an invention into a patent right brings with it unique legal characteristics. Unlike classic property rights, this right "limited in time" and "intertwined with public order .

1. Basic Characteristics of Patent Rights

• Territoriality: Patent rights are valid only within the borders of the country where they are registered. A patent obtained in Turkey does not provide protection in Germany. This gives the patent an international dimension and necessitates a "country-based registration strategy" for companies engaged in global trade.
• Limited Duration: Patent rights do not last forever. In examined patents, this period 20 years. At the end of this period, the invention becomes "public domain"; that is, anyone can now use this technology without permission and free of charge.
• Constitutive Nature: Patent rights do not arise automatically upon the invention. The invention acquires legal force only after it has been examined and registered by the Turkish Patent and Trademark Office (TÜRKPATENT).
• Exclusivity: The patent holder has the right (negative right) to prohibit third parties from producing, selling, or importing the invention. This monopoly is the most powerful weapon for protecting market share.

2. The Distinction Between Invention Rights and Patent Rights

The right to invent is a "natural" right belonging to the inventor. However, a patent right economic value . This distinction is important for the following reason:

• Moral Rights: The inventor's right to have their name credited as the inventor of the invention is personal and non-transferable. This right remains even if the inventor leaves their job.
• Economic Rights: All commercial profits and licensing rights arising from the use of the patent may be exercised by the patent holder (employer or investor).

3. Balance between Public Interest and Balance

Although patent rights may seem like absolute property, they have a social function. The law does not grant the patent holder the right to "conceal the invention"; on the contrary, the public disclosure of information . The patent holder is obliged to explain the technical details (specification) of their invention in a way that everyone can understand. This is the social cost of the patent: I grant you a 20-year monopoly right, but in return, you must teach the technology to the public.

A patent right is a dynamic right that balances not only the inventor's interests but also the technological advancement of society. From the moment of registration, this right becomes a "commercial asset" ; it can be transferred, pledged, licensed, and even inherited.

 Patent Ownership

Patent ownership is one of the most critical regulations of commercial law, determining who will receive all the economic benefits arising from the commercialization of an invention. The Industrial Property Law No. 6769 clarifies the relationship between the "inventor" and the "acquisitor of rights" in this regard.

1. Fundamental Principle: The Inventor's Rights

As a rule, the right to obtain a patent to the inventor . The right to file an application before the patent is registered also belongs to the inventor. This is considered a personal and creative right.

2. Transfer of Ownership and Exceptions

The inventor can transfer the rights to their invention to another person or company. However, two important scenarios are exceptions to this general rule:

• Contractual Transfer: If a company has entered into a contract with a researcher stating that "all inventions you make belong to me," the patent rights are transferred directly to the company.
• Employee Inventions: In inventions made by an employee within the scope of their employment relationship, patent rights may be transferred to the employer (we will detail this in Chapter 5).

3. Scope of Patent Ownership

The powers granted by owning a patent are similar to the "full right of disposal" in property law:

• Exclusive Right: The patent holder prevents unauthorized use of the invention.
• Transfer of Ownership: The patent can be sold to another party (wholly or partially).
• Licensing: The right to use the invention can be leased to others (exclusive or non-exclusive license).
• Pledge and Seizure: Because a patent is a commercial asset, it can be pledged as collateral for a loan or seized due to debts.

4. Determination of Ownership and Disputes

If someone comes forward claiming to be the true owner of the patent, a "patent claim ." The court will examine the technical development process of the invention and decide whether or not that person is the true owner. If the claimant is found to be in the right:

• The patent register is amended.
• The patent holder becomes the plaintiff.
• The compensation process for past misuse will begin.

5. Joint Inventions (Joint Ownership)

If an invention has been made by more than one person, unless otherwise agreed, the patent right jointly . In this case:

• Each partner can file a lawsuit independently of the others.
• However, “management” decisions, such as licensing or transferring a patent, unanimous vote .

Ownership demonstrates that a patent is not merely a "technical document" but also an "economic asset ." A company's innovation capacity is directly proportional to the "robust ownership structure" of its patent portfolio.

The Problem of Inventor Ownership

The issue of inventor ownership is one of the most sensitive points in patent law, as it "compensation for intellectual labor" against "the return on economic investment ." Determining who the inventor is is not merely a matter of a name list, but a legal process that directly affects property and compensation rights.

1. Who is the Inventor?

The inventor is the natural person. Legal entities (companies, universities) cannot be the "inventors"; however, they can be the "acquisitors" of rights to the invention through contracts or law.

• Contribution: If more than one person has contributed to an invention, only those who have made a technical or creative contribution are considered "inventors." Individuals who have only provided financial support, supplied materials, or been involved in administrative management cannot be considered inventors.

2. Key Issues Arising in Invention Ownership

• Omitting or Incorrecting Names: Failing to include or intentionally leaving out the names of inventors in a patent application can lead to the invalidation of the patent or a "claim of ownership" lawsuit.
• Hidden Innovators: Especially in R&D projects, numerous researchers work together. Identifying those who have made truly creative contributions can lead to hierarchical conflicts between departments.
• Borrowing Inventorship: When a company or professor falsely presents unqualified individuals as inventors for "prestige or strategic reasons," it lays the groundwork for serious collusion lawsuits in the future.

3. Proof of Invention Ownership

Invention ownership cannot be protected by a mere claim. Courts or institutions consider the following evidence when determining inventor ownership:

1. R&D Notebooks and Notes: Dated and signed laboratory notebooks.
2. Correspondence: Emails and meeting minutes illustrating the development process of the invention.
3. Prototype Development Processes: Written documentation detailing who made what technical contribution during the design phase.

4. Resolution of Invention Ownership Disputes

If the person listed as the inventor has not actually made a creative contribution to the invention, the real inventor a "patent claim .

• Correction of the Register: By court order, the name of the true inventor is entered into the patent register.
• Restitution of Rights: If the inventor has unfairly acquired the patent rights, the true inventor can reclaim full ownership of the patent or claim compensation.

Why is it important?

The issue of inventor ownership is the “moral” dimension of a patent. An inventor can forgo the money earned from their invention, but “I am the owner of this invention.” Uncertainties regarding inventor ownership can lead to legal crises, particularly in collaborative projects and university-industry partnerships, potentially halting the commercialization of the project.

Worker Inventions and Free Inventions

"Employee inventions," located at the intersection of labor law and patent law, are the most critical legal regulation determining a company's innovation capacity. The ownership of an invention made by an employee at the workplace or using facilities provided by the workplace is regulated by Law No. 6769 on Industrial Property Rights.

1. Classification of Inventions

SMK categorizes employee inventions into three main categories. This classification determines whether the patent rights belong to the employer or the employee:

• Service Inventions: These are inventions created by an employee as a result of activities performed under their employment contract, or by utilizing the company's experience and resources. The right to obtain a patent generally belongs to the employer.
• Independent Inventions: These are inventions that are not directly related to the employee's work activities and are created entirely using their own knowledge and resources, without utilizing the company's facilities (laboratory, data, equipment). The right to obtain a patent belongs entirely to the employee.
• Business-Related Inventions: These are inventions that are not part of the employee's job description but are related to the employer's field of activity. The rights belong to the employee, but the employer is granted a priority "right of purchase/licensing".

2. Employer's Rights and Employee's Right to Compensation

If it is a "service invention," the employer may wish to acquire the patent rights. In this case, the process is as follows:

1. Notification Obligation: The employee is required to notify the employer in writing of their invention.
2. Claim (Article of Right): The employer must notify the employee of their claim to the invention within a specified period following the notification.
3. Compensation: When an employer acquires the rights to a "service invention," they are obligated to pay the employee appropriate compensation . This compensation is determined based on the commercial value of the invention.

3. Disputes in Employee Appointments

The most common problems employees encounter in claiming invention ownership are as follows:

• Determining Compensation: If an employee believes the compensation they received for their invention is insufficient, they can take legal action.
• Scope of Work: An employer claiming rights to every invention as a "service invention" can stifle an employee's creativity. Courts, in this regard, base their decisions on the "job description" in the employment contract.

4. Employee Rights in Innovative Inventions

If an invention is recognized as a "free invention," the employee has full rights over it. The company cannot prevent the employee from patenting the invention independently or selling it to a third party. However, it is advisable for the employee to inform the employer that the invention is "free.".

In summary;

Employee inventions empower employers to "reap the rewards of innovation," while guaranteeing employees "compensation for their labor." This balance is essential for fostering creativity within a company. If companies reward their employees' inventions with fair compensation, their internal R&D activities will become proportionally more efficient.

Worker Appointments in the European Union and the Procedures in Türkiye for Foreigners

Employee inventions represent one of the most complex intersections of labor law and intellectual property at the international level. While in the European Union (EU) this matter is left to each country's own national legislation, there are similarities in terms of general principles.

1. Worker Inventions in the European Union (General Approach)

In EU countries (e.g., Germany, France, Italy), the fundamental philosophy regarding employee inventions of "service contract" and "originality of the invention .

• The German Model (ArbnErfG – Employee Inventions Act): This is the most detailed system in Europe. When an employer claims rights to an invention, they are legally obligated to pay the employee “reasonable compensation.” Compensation calculations are formulated based on factors such as the economic value of the invention, the employee's role, and the company's contribution to the invention.

• Other EU Countries: Many countries (e.g., France) have a similar compensation system. Unless there is a specific clause in the employment contract, the economic rights arising from the employee's inventions pass to the employer; however, the employer must make an additional payment to the employee in return.

2. How does the process work in Türkiye for foreigners?

The rules of the Industrial Property Law also apply to foreign engineers or researchers working for multinational companies operating in Turkey. However, "International Private Law" comes into play here.

• Applicable Law: If the employment contract between a foreign employee and a Turkish employer specifies "which law will apply" (optional right), that law will apply. However, the "mandatory provisions of the Industrial Property Law (IPL)" (rules relating to public order) are valid for inventions made in Turkey. Therefore, if a foreign employee makes an invention in Turkey, the registration and transfer of rights to that invention are subject to the IPL.

• Referral: When a foreign employee wishes to register their invention (or file a claim) with the Turkish Patent and Trademark Office in Turkey, they must do so through a Trademark and Patent Attorney based in Turkey

• Determining Compensation: The amount of compensation a foreign employee receives is determined according to the standards of Turkish labor law and the "appropriate compensation" criteria of the Industrial Property Law. Being a foreign national does not negate their right to receive "service invention" compensation as a researcher working in Turkey.

3. Strategy for Multinational Corporations: “Invention Contracts”

Multinational companies "Global Patent Treaties" . These agreements include:

1. Transfer of Rights: The employee acknowledges that, regardless of their location in the world, they transfer all rights to their inventions to the company (in accordance with the Industrial Property Law).

2. Global Compensation Policy: The company minimizes legal risk by offering a bonus or reward system that exceeds the compensation stipulated by local laws, regardless of the employee's country of residence.

In summary;

While the system in Europe is largely based on "compensation based on legal formulas" (as in the German example), in Türkiye the process proceeds within the framework of "freedom of contract and the principle of fair compensation under the Industrial Property Law." The rights of foreign employees in Türkiye are protected at the same level as those of Turkish citizens. The critical issue is for companies to align the "invention rights" clause in employment contracts with both Türkiye's Industrial Property Law regulations and the legal expectations of the employee's country of citizenship.