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Japanese Nobel Laureate Blasts His Country's Treatment of Inventors

schwit1 writes: Shuji Nakamura won the 2014 Nobel Prize in Physics (along with two other scientists) for his work inventing blue LEDs. But long ago he abandoned Japan for the U.S. because his country's culture and patent law did not favor him as an inventor. Nakamura has now blasted Japan for considering further legislation that would do more harm to inventors.

"In the early 2000s, Nakamura had a falling out with his employer and, it seemed, all of Japan. Relying on a clause in Japan's patent law, article 35, that assigns patents to individual inventors, he took the unprecedented step of suing his former employer for a share of the profits his invention was generating. He eventually agreed to a court-mediated $8 million settlement, moved to the University of California, Santa Barbara (UCSB) and became an American citizen. During this period he bitterly complained about Japan's treatment of inventors, the country's educational system and its legal procedures. 'The problem is now the Japanese government wants to eliminate patent law article 35 and give all patent rights to the company. If the Japanese government changes the patent law it means basically there would no compensation [for inventors].'"

There is a similar problem with copyright law in the U.S., where changes to the law in the 1970s and 1990s have made it almost impossible for copyrights to ever expire. The changes favor the corporations rather than the individuals who might actually create the work.

22 of 191 comments (clear)

  1. Poor delusional old man by Anonymous Coward · · Score: 3, Insightful

    Only if he knew that all work created during the time of employment in the US rightfully belongs to the employer....

    1. Re:Poor delusional old man by brainboyz · · Score: 3, Informative

      Entirely depends on the state. Some allow companies to claim all patents filed by their employees as innovation for hire in some circumstances.

    2. Re:Poor delusional old man by Anonymous Coward · · Score: 5, Informative

      You are incorrect. Patents and copyrights done on your own time and not relating to company assets are yours.

      You might want to re-read your employment contract. It is not uncommon for your contract to state that stuff you work on during the term of your employment belongs to the company unless you have made prior arrangements. At my company, unless you get agreement in writing specifying what you are working on in your own time, everything belongs to the company.

    3. Re:Poor delusional old man by Opportunist · · Score: 4, Informative

      Oh! That's why we have had an influx of a LOT of US researchers recently. Our copyright (which is, more accurately, actually called "creators right") pretty much disallows such a clause.

      Might be a reason why lots of people prefer to do research in Europe where their employers can only offer a shared exploitation of stuff you do in your private time. Usually it's not the worst idea to agree to something like this, since the company usually has far better means to monetize your inventions and has less of an incentive to screw you over than any competitor (since they usually want to retain you in their team, too). But they can neither force you to do so nor simply push you aside, what you do on your own time is your own.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    4. Re:Poor delusional old man by Ol+Olsoc · · Score: 3, Interesting

      You are incorrect. Patents and copyrights done on your own time and not relating to company assets are yours.

      Only if they don't make money.

      I have signed paperwork from the first company I ever worked for that gives them the ownership of anything I ever invented. The next ones too. The wording is interesting, but as I read it, it leaves room for interpretation, the favorite tools of the patent trolls

      I haven't invented anything patented, but you can bet your bottom dollar that if I ever did, and it was a big moneymaker, I'd be hit with lawsuits of ownership, claims that I did the work on company time or used company resources, and then the winner would be sued by the others, until only one was left.

      --
      The shepherds did so well protecting the flock that the sheep no longer believed that wolves existed.
  2. Say what ? by Crashmarik · · Score: 4, Insightful

    There is a similar problem with copyright law in the U.S., where changes to the law in the 1970s and 1990s have made it almost impossible for copyrights to ever expire. The changes favor the corporations rather than the individuals who might actually create the work.

    Wow it's amazing how if you hate something enough you can see everything as justifying your hatred.

    Having copyright extend ever longer is both stupid and counterproductive, but it's no way comparable to changes that take away a creators right to profit from their creations. Arguably it makes the creations more valuable and makes it easier to invest in creating material for either a corporation or an individual. Contrast that with a law from the article that "If the Japanese government changes the patent law it means basically there would no compensation [for inventors]." Apples to Orangutans here.

    With so many very good arguments about why copyright needs to be reformed there's no need to make bad ones.

  3. Works as designed by Znork · · Score: 5, Interesting

    Patent and copyright laws have never been about compensating inventors or creators. If they had been, they would be mandating actual payment to them.

    Their construction as monopoly rights in a market where few individual creators or inventors will be scarce resources ensures that the negotiating power will be entirely on those in control of markets and distribution networks. The middle man can easily just pick up another provider of materials, while the originator is forced to take whatever deal is offered or face being unable to reach customers at all. Modern technology has slightly improved the situation with better opportunities, but ultimately, the deck is stacked solidly against the creators.

    But that's working as it's designed. The purpose of monopoly rights has always been to provide stable market power and protection from free market competition for the friends of the crown. Creators are merely the convenient, powerless and easily replaceable excuse.

    1. Re:Works as designed by Anonymous Coward · · Score: 5, Informative

      This is nonsence. The entire reason for the patent is to bring knowledge into the public domain, to stop that knowledge being hidden as a trade secret. The twenty year monopoly is the bargain the state makes with the inventor for that knowledge.

  4. If you want personal patent... by Anonymous Coward · · Score: 5, Insightful

    Spend your personal time and resources at inveting.

    If you spend your worktime and resources from your job for your invention I don't see why you personally should get a patent. If my boss pays me to clean toilets and I invent something then there might be a point, but if my boss pays me (and gives me staff to freely use) to invent stuff I don't see the merit.

  5. Hang on WTF? by Harlequin80 · · Score: 5, Insightful

    He created the work while employed by someone. That someone provided him with all the equipment and capabilities to do the research why the hell should he be awarded the patent?

    If you are part of a team who gets the patent? It seems to me only logical that the entity that commissioned the work, invested the resources and made it happen ie the company should own the patent.

    As for the education system. Correct me if I am wrong but this guy who is now holder of a nobel prize is the product of that education system.... There seems to be a serious axe to grind there with a feeling that he didn't get his due and I think he is drawing a very long bow.

    1. Re:Hang on WTF? by Feral+Nerd · · Score: 4, Insightful

      He created the work while employed by someone. That someone provided him with all the equipment and capabilities to do the research why the hell should he be awarded the patent?

      If you are part of a team who gets the patent? It seems to me only logical that the entity that commissioned the work, invested the resources and made it happen ie the company should own the patent.

      As for the education system. Correct me if I am wrong but this guy who is now holder of a nobel prize is the product of that education system.... There seems to be a serious axe to grind there with a feeling that he didn't get his due and I think he is drawing a very long bow.

      I dunno... because he was the source of innovation? If you have a valuable employee whose abilities are responsible is generating a substantial portion of your company's revenues you might want to keep him happy and employed with you. Treating him/her like shit, paying him/her worse than shit while you go off buying yachts, villas, luxury cars and renting top range hookers with all the money you earned through your hard work will probably result in that employee leaving your company and going somewhere else to another company who offers superior compensation and a share in the profits. Now there are two ways to pervent this, you can:

      (1) Not treat your valued employee like shit and outbid your competitors to keep the employee from leaving (that's the theoreticalcapitalist way) or
      (2) you could do what many companies in the western world to, you could lobby for legislation that restricts worker's rights, seek to get government to ban empoyees from organizing, and try to force your employees to sign contracts with 'anti competition clauses' in them that are usually found to be unconstutional though fortunately (from the managers point of view) this normally only happens after a prolonged legal battle that employees as a rule can't afford.

      If you are part of a team that is awarded a patent pretty much the same applies. Employees should award teams that generate alot of revenue for the company with a share in the profits. Otherwise the employees should be free to leave.

    2. Re:Hang on WTF? by trptrp · · Score: 5, Informative

      It seems to me only logical that the entity that commissioned the work, invested the resources and made it happen ie the company should own the patent.

      What you're proposing sounds like zero incentive to invent while being employed. Doesn't make much sense psychologically.

      $8 Million is quite low if you know what this guy's invention stimulated across various fields

      I think just is if one agrees with the employer about a certain split ratio when signing for the job. It seems that here in Germany while employed at a university the inventor is entitled to 30% of the revenue achieved by commercialization.

    3. Re:Hang on WTF? by trenien · · Score: 4, Insightful
      The situation is somewhat incompletely described.

      What actually happened was that the guy invented said blue led (on a standard engineer salary), which pretty quickly allowed his company to rake in tens of millions. When he politely complained that the invention which made them huge profits had earned him exactly nothing, his boss basicaly said:

      "Oh, that's right. Here is a $300 bonus. Have fun at the bar!"

      The problem he is complaining about when he talks about education is probably linked to the pyramidal hierarchy that's ingrained in Japanese people from kindergarten : whatever you do, the group leader is at the forefront. In research, that basically means a department director is the first credited for any discovery, except if he is generous enough to allow whoever did the actual work be awarded the authorship. Considering this also works in case of problems (the one in charge is the one taking the blame), you could say it is a game of give and take.

      However in this case the profit only accrued to the boss/owners (I don't know whether the company was privately owned or not), with pretty much nothing for the guy at the source of it all. That's a breach of the unwritten rules of Japanese social interactions, but standard workings of Japanese society would have had him take it and shut up, too bad form him that his higher-ups were dicks. He decided he wouldn't.

    4. Re:Hang on WTF? by Harlequin80 · · Score: 3, Insightful

      And he was free to leave. In fact he did leave.

      As for being the source of the innovation, there is no question that he is a brilliant scientist. But there are lots of brilliant scientists. If another had been given the same job as him there is nothing to say they wouldn't have been the one to have come up with blue leds.

      In the end he signed an agreement to trade his time and expertise for a set figure, his salary. After the agreement, because his particular work was more successful than expected, he wants a bigger share.

      If you leave your company I assume that you know you don't get to take all the intellectual property you have been working on with you. Whether you are a scientist building blue leds, a programmer writing a phone app, or a sales monkey with a list of clients. That IP belongs to your employer.

    5. Re:Hang on WTF? by tburkhol · · Score: 3, Insightful

      It seems to me only logical that the entity that commissioned the work, invested the resources and made it happen ie the company should own the patent.

      What you're proposing sounds like zero incentive to invent while being employed. Doesn't make much sense psychologically.

      The guy was paid to invent stuff. It's not like he was a cashier or even a QA engineer who just happened across LED technology in his spare time. His employer gave him a salary, a staff, and a bunch of fancy equipment to play with, and (presumably) instructions somewhere between "make something cool" and "make us a blue LED." If he hadn't invented anything, he would (again, presumably) have been fired for failure.

      Certainly, a rational company should offer some reward to their successful R&D teams. Some kind of bonus equivalent to what the executive team gets for profitable years. Failing to offer any kind of success incentive is going to encourage the better employees to leave (as happened in this case), and hurt long-term competitiveness.

      The question is whether you want the government to mandate what share of an invention the responsible human gets and how to share that out across multiple involved parties. eg: presumably the project manager gets a share, but what about the guy running the chemistry lab that prepared the AlGaN? What about the tech who pipetted compound A into container B as instructed? Or the guy washing glassware? Should it be the same share for a guy who refines the blue LED as for a guy who bundles a flashlight in a key fob? Japan's article 35 seems to be just such a law.

    6. Re:Hang on WTF? by Antique+Geekmeister · · Score: 4, Informative

      > As for being the source of the innovation, there is no question that he is a brilliant scientist. But there are lots of brilliant scientists. If another had been given the same job as him there is nothing to say they wouldn't have been the one to have come up with blue leds.

      Anyone who knows the field would say so. Other colors for LED's were a long sought goal at the time, and the new technologies required several genuine developments and insights. When told to stop working on it at his company, he continued the research on his own, with materials he paid for out of his own salary. His was a classic case of a dedicated scientist completing a tack considered too difficult by his superiors.

    7. Re:Hang on WTF? by AmiMoJo · · Score: 4, Informative

      Clearly in this case the court disagrees with you, and I'll try to explain why. From TFA:

      "Nakamura, who held only a master's degree and was toiling practically on his own at a small specialty chemical manufacturer in rural Shikoku, cracked the fabrication challenges to get a bright blue LED that was commercially viable."

      So he did a lot of the work on his own time and with his own company. More over, in Japan, like many counties, "you are free to leave" is not an excuse for bad working conditions or contracts. Courts can and do decide that things are unfair, even if you agreed to them at the time.

      In Japan patents are awarded to individuals. Employment contracts can stipulate that things invented at work have to be turned over to the company, but they can only do so within the bounds of contract law. In this case since Nakamura put in a lot of work and money on his own to develop a commercially viable fabrication method for blue LEDs it doesn't matter that the contract says the people he was working for own everything he patents, because he was not compensated for that work and the law says that he must be.

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
  6. America is worse. by Anonymous Coward · · Score: 4, Informative

    This is just idiotic. In America if you're work for hire the company owns your patents unless you invent them on your own time using your own resources. He's a damned fool, in America he wouldn't have gotten a cent if he'd tried to sue his employer for royalties unless his contract expressly granted royalties.

  7. Re:Well, its certainly on the right track. by Anonymous Coward · · Score: 4, Insightful

    Clearly this means that the patent money is not a great catalyst for the invention he made.

    How do you come to this conclusion? It is more likely that he worked on research in the hopes that he will share the profits that it generates. Think of it as stock based compensation. You would work before you see the money, if you do good, you will see money when the stock price increases.

  8. America is worse. by Antique+Geekmeister · · Score: 5, Informative

    I'm afraid you need to look up his case. His employers said "stop" and ended the funding, especially of technician time and equipment. He then completed the work on his own time, out of his own salary, with equipment and materials he bought. The company did wind up owning the patent. But this is a case where the inventor did, indeed, act as a dedicated scientist and engineer, not merely as an employee under managerial direction.

  9. Expected value of contributions by sjbe · · Score: 3, Insightful

    You don't get to renegotiate afterwards. Your incentive to do stuff at work is your salary.

    Why not? If you have the bargaining position to negotiate a better deal after the fact why shouldn't you? Some naive sense of obligation or fairness to a company that doesn't reciprocate? Don't be absurd. Some work cannot be done without having the resources of a company behind you and no one ever knows if they are going to create something really valuable ahead of time. Maybe the guy was in a tough situation when he was first employed and wasn't in a position to walk away despite some odious contractual terms. If the guy has the ability to get paid for the full value of his work then he should seek to do so.

    I run a company and if someone were to unexpectedly create something that benefited the company greatly, I'd be a selfish prick to not share substantially of the rewards with that person. It doesn't mean the company has to hand over all the benefits but sharing a substantial percent of the rewards with an inventor is quite fair.

    If you are writing code for a living you will create new things ever day to solve the problem you encounter.

    That doesn't mean every problem you solve will be worth millions to the company. This guy did something FAR beyond the expected value of his services and it's not unreasonable for him to ask to be compensated accordingly even after the fact. While the company doesn't legally have to do anything, it doesn't follow that they shouldn't make sure the guy is well compensated for his efforts.

  10. Re: Hos is the US any better? by meta-monkey · · Score: 3, Insightful

    To be honest, what I can't figure out is why people aren't just...writing their own laws. I keep seeing first-world anarchists on reddit (and slashdot, and the comments sections on CNN, etc) call for violent revolution and they never seem to get around to answering "and then what?" Well, first they never answer "exactly who is it you want on the chopping block? Name names."

    All the laws are online. You've got a text editor and wikis are free. Think there are holes in the constitution? Okay, show us how you'd plug them. Don't like FCC regulations? Okay, rewrite them and post them. Gosh, I bet if people do that, others might even think their ideas were good enough to...I dunno...vote for? Get enough people to go along with those ideas (which would be the end result of the blood-in-the-streets bit) and you can even skip that whole thing!

    But no, no, that would be boring and tedious work. Much better to advocate blood and murder and figure it all out later.

    --
    We don't have a state-run media we have a media-run state.