Remuneration Rule for Employee Inventions, Moral Hazard, and the Hold-Up Problem

  • Keiki KumagaeEmail author


Under the patent Law of Japan, an inventor has a right to demand the remuneration as monetary compensation for the employee invention (Article 35). If the inventor is dissatisfied with the amount of compensation they have paid, the inventor can file a lawsuit. When the inventor wins the lawsuit, the court can intervene in the level of the remuneration which has been agreed in advance and orders the employer to pay extra profit as a reasonable remuneration. In order to calculate this extra payment, the court takes the amount of profits that the employer will make from the successful invention and the contribution made by the employer and inventor into consideration.


  1. Inoue, Y. 2015. Heisei 27 nen Shokumu-hatsumei seido kaisei nituiteno iti kosatsu. Tokkyo Kenkyu 60: 18–27.Google Scholar
  2. Ishiguro, S. 2005. Shokumu-Hatusmei no Keizaibunseki -Keiyakurironteki Sekkin. Nihon Rodo Kenkyu Zasshi 541: 24–33.Google Scholar
  3. Kumagae, K. 2017. Joho shushu moderu niokeru Naihatutekidoki wo motu Rodosha heno Saiteki keiyaku. Oyo Keizaigaku Kenkyu 11: 35–54.Google Scholar
  4. Kumagae, K. 2018. Optimal task design for intrinsically motivated workers with an incomplete contract. Journal of National Development 31 (1): 29–38.Google Scholar
  5. Mochizuki, S. 2004. Aoiro Hakko Daiodo Tokkyo Jiken no iti kosatsu. Patento 57: 41–49.Google Scholar
  6. Muramoto, A. 2016. Shokumuhatumei-Seido no Keizai bunseki -Kenkyu Kaihatsu Insenthibu to Taika -Seikyu-Sosho niyoru Keizai Sonshitu no Kantenkara(Economic analysis on employee invention system from the viewpoint of R & D incentive and welfare loss arising from lawsuit against for remuneration for invention (In Japan)). TizaiKen Kiyo 25: 1–7.Google Scholar
  7. Nagaoka, S., Owan, H. and Onishi, K. 2014. Hatumeisha heno Insenthibu sekkei: Riron to Jissho, RIETI discussion paper series, 14-J-044, 1–58.Google Scholar
  8. Schmitz, P.W. 2012. The hold-up problem, innovations, and limited liability. Economics Letters 117: 841–843.CrossRefGoogle Scholar
  9. Yanagawa, N. 2006. Ho to Kigyo-Kodo no Keizaibunseki, Nihon Keizai Shinbunsha.Google Scholar
  10. Yasaki, Y., and A. Goto. 2006. Contribution-proportional remuneration rule for employee inventions and its effects on effort and investment incentives. Economics of Innovation and New Technology 15 (7): 665–678.CrossRefGoogle Scholar

Copyright information

© Springer Nature Singapore Pte Ltd. 2018

Authors and Affiliations

  1. 1.Kyushu UniversityFukuokaJapan

Personalised recommendations