Inventions in Russia: Achievement Incentive

In 2021, the remuneration of workers who create service inventions will increase. Moreover, companies that use patented inventions will receive tax benefits from the state.

As it is known, not every technical solution becomes the object of patenting. There may be different reasons for this: the invention does not meet the conditions of patentability, the inventor does not have the means to register it, the benefits of patenting are underestimated, and so on.

To increase the level of applicant activity in the field of industrial property in Russia, it was decided to stimulate and popularize inventive work. This year, in the framework of the outlined policy, the following positive changes have taken place and will probably take place:

1. The amount of remuneration related to the creation and use of inventions in the course of official activities was increased. As of January 1, 2021, the Order of the Government of the Russian Federation containing the Rules for Remuneration for Service Inventions, Service Utility Models, and Service Industrial Designs (hereinafter the Rules) has come into force¹. The adopted bylaw will be valid until January 1, 2027 and provides the following.

• Payment by the employer of remuneration to the employee in the amount of 30 percent of the average salary of the latter for the creation of a business invention.²
• Payment of remuneration for the use of the service invention in the enterprise. Paragraph 3 of the Regulations establishes the amount of such payment: “...in the amount of 3 average monthly wages of the employee over the last 12 calendar months, in which such invention was used.”
• Transfer of a certain amount to the employee, when granting the right to use the service invention under the license agreement or full transfer of rights under the contract of alienation. When granting the right to use an employee’s business invention to another person, the employer shall pay to the employee a remuneration equal to 10 percent of the remuneration due to the employer under the license agreement. In the case of a contract of alienation, the employer shall pay to the employee who created the business invention a remuneration equal to 15 percent of the remuneration provided by the contract of alienation and due to the employer. ³

1. As Grigory Ivliev, the head of Rospatent noted, currently an active work on the development of tax incentives for companies that actively use patented technical solutions in production is underway. There are plans to reduce income tax for organizations that manufacture products on the basis of issued patents. Also, the patent office is promoting the dea: “to exempt intellectual property that has passed the inventory tax for a certain period of time.” ⁴
2. Grigory Ivliev comments: “...I really like the initiative of the Ulyanovsk regional authorities, where an innovation voucher was introduced; the regional government allocates money for the promotion of an invention, its patenting and implementation in production. It is a very promising form of support for inventors, start-ups, medium and small entrepreneurs. Similar projects are now being launched in other regions of Russia. As a matter of principle, this should be a permanent federal form of grant support in the field of intellectual property.” ⁵

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It is worth assuming that the measures taken and the ongoing activities will lead to a progressive increase in the applicant activity and active use of patented inventions by domestic enterprises.

1^ Order of the Government of the Russian Federation of November 16, 2020 No. 1848 On Approval of the Rules for Payment of Remuneration for Official Inventions, Official Utility Models, Official Industrial Designs

2^ See more details: paragraph 2 of the Rules

3^ See more details: paragraphs 4 and 5 of the Rules

4^ Grigory Ivliev: Rospatent Prepare New Services for Inventors // Rossiyskaya Gazeta URL: https://rg.ru/2021/01/03/grigorij-ivliev-rospatent-gotovit-novye-servisy-dlia-izobretatelej.html (Seen on February, 2021).

5^ See ibid.