Toyota to Increase Compensation for Inventions by 20%

Toyota, the world’s largest car manufacturer, is set to increase the amount of compensation employees’ receive for inventions by 20%. Previously, the maximum compensation employees could receive for their inventions was \1,800,000. Under the increase, however, this compensation maximum will increase to \2,150,000.
Furthermore, under the existing system, the threshold for invention compensation eligibility at Toyota is based on the number of units sold which include the invention. The current threshold is for 800,000 units; however, Toyota is currently contemplating lowering this threshold.

Toyota has also been considering providing employees with a history of developing inventions up to \300,000 to put towards the cost of training and materials in order to support further research. As part of last year’s amendments to the Japanese patent laws, Japanese companies are now entitled to the patent rights for inventions made by its employees as dictated by the terms of their employment contracts; however, the Japanese government is also requesting that companies compensate the inventor-employee with substantial monetary or economic interests.