Key points
- Article L611-7 of the French Intellectual Property Code (Code de la propriété intellectuelle) classifies employee inventions into three categories.
- Mission inventions (inventions de mission), made in the course of an inventive mission, belong to the employer, and the employee receives additional remuneration.
- Attributable non-mission inventions belong to the employee, but the employer can have them assigned to it in return for a fair price.
- Free inventions, with no link to the company, belong entirely to the employee.
- The employee declares the invention to the employer immediately, stating the classification the employee considers applicable; the employer has two months to take a position and four months to claim an attributable invention.
- Disputes over classification, fair price or additional remuneration may be referred, at the request of either party, to the CNIS (French national commission on employee inventions), or brought before the Judicial Court (tribunal judiciaire).
In an innovative company, inventions most often arise from the work of employees. Who owns them? Is the employee entitled to remuneration? What happens to an invention made outside the mission entrusted to the employee? If these questions are not anticipated, they become sources of dispute and weaken the company’s intangible assets. Article L611-7 of the Intellectual Property Code sets the framework, around three categories.
Mission inventions: owned by the employer
The first category is mission inventions. Under Article L611-7, “inventions made by the employee in the performance either of an employment contract that includes an inventive mission corresponding to the employee’s actual duties, or of studies and research explicitly entrusted to the employee, belong to the employer” (unofficial translation). Ownership of the invention therefore passes directly to the company, as long as the employee was tasked with inventing. In return, the employee receives additional remuneration on the terms set by collective agreements, company agreements or the employment contract.
Attributable non-mission inventions: the employer’s right of assignment
The second category covers inventions made by the employee outside any inventive mission, but linked to the company: in the course of the employee’s duties, in the field of the company’s activities, or through techniques, resources or data provided by the company. In principle, these inventions belong to the employee, but the employer has a right of assignment: on the conditions and within the time limits set by decree, it can have ownership or enjoyment of the rights attached to the patent assigned to it. The employee must then “obtain a fair price” (unofficial translation), which, failing agreement, is set by the conciliation commission or by the court.
Free inventions: owned by the employee
The third category groups inventions with no link at all to the company: not to the employee’s duties, not to its field of activity, not to its resources. These free inventions belong entirely to the employee, who can deal with them as they see fit. The line between free inventions and attributable non-mission inventions is sometimes hard to draw: it turns on the real link between the invention and the company’s activity or resources, and it is a frequent source of litigation.
Declaring the invention: a key step
The mechanism rests on a duty to declare: the employee who makes an invention must “immediately declare it to the employer” (unofficial translation; Article R. 611-1 of the Intellectual Property Code (in French)) and states the classification as it appears to the employee. The employer has two months to take a position on that classification; if it does not, it is presumed to have accepted it (Article R. 611-6 (in French)). For an attributable non-mission invention, the employer has four months to claim its right of assignment (Article R. 611-7 (in French)). A flawed declaration procedure, or a hasty classification, exposes the company to later disputes over ownership and remuneration. Setting up a clear internal process is therefore essential in any innovative company.
Fair price and additional remuneration
Remuneration differs by category. For a mission invention, the employee is entitled to additional remuneration. For an attributable non-mission invention, the employee is entitled to a fair price in return for its assignment to the employer. These sums are often underestimated, can be significant and give rise to frequent litigation. Anticipating them in contracts and through a consistent internal policy reduces the risk and protects the relationship.
The national commission on employee inventions (CNIS)
Disputes over employee inventions benefit from a specific settlement procedure. At the request of either party, the CNIS (French national commission on employee inventions), a joint conciliation commission attached to the INPI (French patent office) and chaired by a judge (Article L. 615-21 of the Intellectual Property Code (in French)), examines disputes concerning the classification of the invention, the fair price or the additional remuneration (for the latter, where the employer is not bound by an industry-wide collective agreement). It issues a conciliation proposal within six months of the referral; that proposal is deemed an agreement if neither party brings the matter before the Judicial Court within one month of its notification. This technical procedure combines intellectual property law and employment law: it calls for rigorous preparation, both on the facts (nature of the invention, company resources) and on the financial valuation. Anticipating this litigation starts with building solid documentation from the moment the invention is declared.
A major issue for start-ups and deeptech
For a start-up or a deeptech company, control over employee inventions is vital: the company’s value often rests on its patent portfolio and its know-how. A poorly protected invention, disputed ownership or unprovisioned remuneration can jeopardise a fundraising or a sale, during which investors closely examine the chain of title to the intellectual property. Putting a clear invention management policy in place from incorporation is therefore a strategic investment, not a mere legal formality.
Points to watch
- Define inventive missions clearly in employment contracts.
- Set up a procedure for declaring inventions.
- Classify each invention in the right category, within the time limits.
- Plan and provision for additional remuneration and the fair price.
- Document the link, or the absence of a link, between the invention and the company.
How we act for you
- Drafting the intellectual property clauses of employment contracts.
- Setting up internal declaration and classification procedures.
- Making the ownership and remuneration of inventors legally sound.
- Litigation over ownership, fair price and additional remuneration.
FAQ
Who owns an employee’s invention in France?
It depends on the category: a mission invention belongs to the employer; an attributable non-mission invention belongs to the employee, with a right of assignment for the employer in return for a fair price; a free invention belongs to the employee.
Is an employee inventor entitled to remuneration?
Yes: additional remuneration for a mission invention, or a fair price for a non-mission invention assigned to the employer, set by the conciliation commission or the court failing agreement.
What can be done if the parties disagree on the classification?
Either party may ask for the matter to be referred to the CNIS (French national commission on employee inventions), or bring it before the Judicial Court. Prevention, through a clear procedure and rigorous documentation, is the better course.
Can an employment contract clause assign all inventions to the employer?
Article L611-7 applies “unless there is a contractual provision more favourable to the employee” (unofficial translation): a clause therefore cannot deprive the employee of the additional remuneration or the fair price owed. It can, however, define inventive missions and organise the declaration procedure.
Official sources
- Article L611-7 of the Intellectual Property Code, employee inventions: Légifrance (in French)
Every situation is different and we make no promise of outcome. To make the management of your employees’ inventions legally sound, our intellectual property lawyers assist you.
For assistance: intellectual property lawyer.
