On September 1, 2026, new rules on remuneration for employee inventions (the "Rules")[i] will take effect in Russia. The Rules replace the current system[ii] and will remain in force until September 1, 2032.
The Rules apply to situations when an employee develops patentable intellectual property (i.e., inventions, utility models and/or industrial designs) within his/her employment duties or the employer’s particular task, and correspondingly such employee obtains the right to remuneration.
The Rules establish a new, more detailed approach to calculations of the remuneration, which requires employers to adapt their internal procedures and documentation.
Note: The Rules, as before, apply only if no agreement has been concluded between the employer and the employee establishing the amount, terms, and procedure for payment of remuneration.
In Detail
Key changes:
1. Two-Tier Remuneration Structure
- One-time remuneration for creating a patentable result of intellectual activity (the "RIA"). It shall be paid upon the occurrence of one of the following events: a patent is granted; the employer decides to maintain the information about RIA in secret; the right to obtain a patent is assigned to a third party; or a patent is not granted due to reasons attributable to the employer.
- Annual remuneration for maintaining the patent (in case the patent has been granted). Note: This payment is required throughout the term of the patent's legal protection, even if the invention is not being used by the company.
2. Introduction of a Formula-Based Calculation
The amount of remuneration is no longer tied to the employee's average salary. Instead, it will be calculated using a coefficient-based formula. This will require employers to conduct internal assessments and maintain supporting documentation.
3. Post-Employment Payment Procedure
To receive remuneration after the termination of the employment a former employee must submit a written request to the employer.
4. Increase of Remuneration Amount
In situations when remuneration is calculated in accordance with the Rules, the remuneration amounts to be paid to employees are significantly higher than before.
Practical Implications
1. Justifying Payment Amounts
Employers shall be required to determine and substantiate the values of key coefficients (technological leadership, technology readiness, and scope of use) by establishing formal and transparent assessment procedures. If an assessment is challenged in court as being unreasonable, it will entail a recalculation of all associated annual payments.
2. Adaptation of Administrative Processes
Employers will need to need to do the following:
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Develop new internal policies (local normative acts), procedures for technology assessment, and an annual system to track the scope of use for each patent.
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Monitor grounds and payment timing for each type of remuneration.
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Monitor the status of each inventor: this includes administering payment requests from former employees as well as processing written waivers of remuneration – a new right granted to employees under the Rules.
3. Payments for Active Patents
The introduction of annual payments to inventors during the term of a patent’s legal protection, regardless of the patent’s use, creates incentives for companies to manage their IP portfolio more actively, including the abandonment of patents that are no longer valuable to the business.
Recommendations
To avoid the application of the Rules, which are cumbersome and may result in much higher payments, the most efficient solution would be to implement a contractual remuneration payment procedure. This will allow the company to apply a manageable model tailored to its specific goals, rather than the default model established by the Rules. To achieve this, we recommend proceeding with the following actions before September 1, 2026:
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Execute addenda to employment agreements (or separate civil law agreements) on employee remuneration with employees involved in creating patentable innovations. These agreements must define the amount, terms, and procedure for payment of remuneration.
- Review and update internal regulations including any policies on Employee RIAs, to ensure compliance with a chosen remuneration model.
Contacts
[i] Resolution of the Government of the Russian Federation No. 654 of May 30, 2026 "On the Approval of the Rules for Remuneration for Employee Inventions, Employee Utility Models, and Employee Industrial Designs"
[ii] Resolution of the Government of the Russian Federation No. 1848 of November 16, 2020 "On the Approval of the Rules for Remuneration for Employee Inventions, Employee Utility Models, and Employee Industrial Designs"
[ii] Resolution of the Government of the Russian Federation No. 1848 of November 16, 2020 "On the Approval of the Rules for Remuneration for Employee Inventions, Employee Utility Models, and Employee Industrial Designs"
