Meaning
Valuation baselines calculated under German statutory rules establish the total monetary value generated by an employee invention for a enterprise. Determining the erfindungswert provides the foundational figure to which share factors are applied to derive mandatory financial compensation for employee inventors. Corporate employers compute this value using license analogy or estimated production savings resulting from patented technology.
Valuation Methodology
Application of license analogy represents the primary method used by internal patent departments to assess monetary value. Under this method, corporate accountants apply standard industry royalty rates to net revenues generated by commercial products incorporating the invention. When product sales figures do not isolate the patented feature, royalty rates apply only to relevant sub-assemblies or component parts rather than whole finished units.
Alternative calculations based on corporate cost savings measure direct reductions in labor or raw materials achieved through process patents.
Exploitation Assessment
Non-commercialized defensive patents require hypothetical licensing estimates based on market value and competitive advantage. Employers holding patents solely to block market competitors must still calculate an erfindungswert to compensate inventors for lost commercial opportunities. Corporate financial teams evaluate market barriers created by defensive filings to assign fair monetary valuations.
Legal Dispute
Disagreements regarding royalty percentages and sales attribution proceed to specialized arbitration bodies before reaching formal judicial litigation. Joint employer-employee boards attempt conciliation using industry benchmarks.
