The ruling from Frankfurt Higher Regional Court concludes a legal dispute ongoing since 2018, which was referred to the Federal Court of Justice during proceedings. It bolsters employers’ position by confirming they can withdraw from compensation arrangements that exceed statutory requirements, even years after implementation.
The 6th Civil Senate under presiding judge Arne Hasse followed the reasoning of family-owned company Kettenbach, a German specialist in chemical dental materials, that a “substantially unfair remuneration agreement” existed, which the employer later dispensed with (case ID: 6 U 172/20).
Kettenbach demonstrated through detailed calculations that since 2012 it had consistently paid its employee more than 100% of the statutorily required compensation for the invention. From 2017, the company compensated the inventor according to statutory provisions. This included a ‘share factor’, which the court deemed appropriate. This factor considers the company’s contribution to the invention, such as materials provided. The employee had sought to continue the previous compensation arrangement until the patent rights expire in 2035, including back payments from 2017.
Additionally, the Higher Regional Court rejected claims of “company practice”. In German employment law, this concept refers to the regular, uniform and unconditional provision of voluntary benefits, such as Christmas and holiday bonuses. While this can create...
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