Employee inventions in Canada

EMPLOYEEINVENTIONSINCANADA

MICHELBÉLANGER*
ROBIC,
LLP
L
AWYERS,PATENTANDTRADE-MARKSAGENTS

WhoownsinventionsdevelopedbyemployeesinCanada?Intuitively,thismay
seemsimple.However,apartfromthecaseofinventionsdevelopedbyfederal
publicservants,thePatentActissilentonthematter.Caselawiswhereonecan
findthecriteriatodetermineownershipofaninventionbetweenanemployerandits
inventor-employee.
ApatentapplicationfiledinCanadamustbyregulationincludeapetition,a
descriptionoftheinventionandpaymentofthefilingfees.Thenamesofthe
applicantandofeachinventorareindicatedinthepetition.Whentheapplicationis
filedbytheinventor,theapplicantandtheinventorarethesameperson.Let’s
clarify,inbroadterms,themeaningofapplicantandinventor.
·Applicant:Theonefilingthepatentapplicationand,unlesstheapplicantis
alsotheinventor,thispersonorentitymusthaveacquiredtherightsofthe
inventor.
·Inventor:ThereisnocleardefinitionofwhataninventorisinthePatentAct.
Aninventoristheonewhoseinventionisbeingclaimedinapatent
application.Aninventormaybeanindependentinventor,afederalpublic
servantoraninventor-employee.

Theindependentinventoristhesimplestofallcases,meaningthattheinventoris
alsotheapplicant.
Thefederalpublicservantinventorisgovernedbyacompletelydifferentact,the
PublicServantInventionsAct.

Theinventor-employeeistheinventorcategorymostgenerallyencounteredbutfor
whichthePatentActisunfortunatelysilent.Canadiancourtstypicallyhavebeen
giventhetasktosettletheconflictsarisingbetweenemployeesandtheiremployers
indeterminingwhoshouldowntheintellectualpropertyrightsinregardstothe
inventionsdevelopedbyemployees.

©CIPS,2010.*WithROBIC,LLPamultidisciplinaryfirmofLawyers,andPatentandTrade-markAgents.Published
intheSpring2010Newsletterofthefirm(Vol.14,No.1).Publication068.120E.

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Tothisday,themainguidelinesfordeterminingtherightsofinventor-employees
andthoseofemployersareestablishedinthe1991decisionComstockCanadav.
ElectecLtdinvolvingComstockCanada,acompanyspecializedintheinstallationof
electriccircuitsandElectecLtd.,acompanyincorporatedbyMr.Hydeandhiswife.
From1981to1985,HydewasanemployeeofComstockCanada.Hydehelped
developtheinventionofaninter-connectingsystemoflightingappliances.Hydewas
notanengineerandwasnothiredbythecompanyasaninventor.Comstock
Canadapatentedtheinventionbynaminganotheremployeeastheinventor.The
courtconcludedthatHydewasthesoleinventoreventhoughhehadbeenhired
neitherasaninventornorasanengineer.ThecourtalsojudgedthatComstockhad
triedtotakeownershipofHyde’sworkwithoutindemnity,whichthecourtqualified
asslavery.Thisdecisionconfirmsapresumptionofownershipinfavorofthe
employee.
Nevertheless,thisdecisionoffersemployerssomewaysout.Thejudgeliststhe
followingexceptionstothepresumptionofownershipinfavoroftheinventor-
employee:1.Acontractexpresslystatingotherwise;and
2.Thecaseinwhichthepersonwasspecificallyhiredtoinventor
innovate.

Exampleofaproblemindeterminingtherightsofaninventorinasoftware
developmentcontext.
Afictitiouscompany,Softwareco,hiresanemployee,JoeAnybody,inorderto
improveitswebsitewithaclientinterfaceforafter-saleservices.Usingknowledge
acquiredduringhisworkatSoftwareco,theemployeedevelops,duringhisfreetime
athome,anewtoolforcertifyingtheidentityofusersofawebsite,afeaturethat
wasnotspecificallyrequiredfortheclientinterfacedevelopmentproject.Itturnsout
thatthisnewidentitycertificationtoolisaveryinterestingcommercialproductfor
anycompanyhavingawebsitewithaclientinterfaceforafter-saleservices.Ifthe
workcontractdoesnotcontainanyclauserelatedtothepropertyofinventions
conceivedduringtheproject,thedeterminationoftheownershipofinventorrights
withrespecttotheidentitycertificationtoolwillbedifficulttoestablishandcan
thereforeresultinaconflictbetweenthecompanyandtheemployee.

Howcananemployerclaimtheownershiprightstoaninventor-employee’s
invention?
Theemployermustprovideintheemploymentagreementprovision’spursuantto
whichtheemployeeassignstohisorheremployerallofhisorherrightsinthe
inventionsthatresultfromhisorherwork.
Itisrecommendedtoseekspecializedlegalcounseltodraftorinterpretsuch
provisionsinanemploymentagreementtoavoidfuturedisputes.

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