tva logoTennessee Valley Authority

BUSINESS - PRACTICE 8

Inventions

WHAT

The TVA Act provides that any inventions made by employees as part of their official duties are TVA property. TVA shares at least 15 percent of its patented invention income with its inventors to help motivate employees to pursue further inventions.

All employees are required to disclose all inventions made during their employment regardless of their subject matter, patentability or the circumstances under which each invention is made. However, TVA does not acquire the property rights to any employee invention which was not made by virtue of and incidental to the employee's TVA employment.

WHO

  • All employees
  • Consultants and employees of cooperating institutions or contractors who are performing work for TVA, depending upon the circumstances

WHY

Bringing TVA-sponsored inventions to practical application can:

  • Improve operations.
  • Help achieve the effective transfer of technology to the private sector.
  • Enhance TVA's reputation as an industry leader.
  • Generate income.

HOW

TVA may treat inventions in one of three ways:

  • TVA may make inventions for use within TVA.
  • TVA may develop those with commercial potential for use within TVA and for licensing and sale to other companies.
  • TVA may waive its rights to an invention to the employee(s) responsible, depending on the type of invention and the situation.

RECOGNIZING AN INVENTION

Inventions can cover a wide variety of discoveries, innovations or scientific or technological contributions. Potentially patentable inventions include new or improved:

  • Machines or apparatus.
  • Machine parts.
  • Manufacturing methods.
  • Processes for producing materials.
  • Compositions of matter.

Some inventions or discoveries, including most computer programs, are not patentable. However, they may still have valuable property rights that can be licensed. The Office of the General Counsel can help you determine whether an invention is patentable or whether property rights can and should be licensed.

KEEPING RECORDS

Employees should keep accurate, complete, concise and corroborated records of their input into the making of each invention. These records may be needed to support patent applications.

PROTECTING PROPERTY RIGHTS

Until TVA has secured property rights to an invention, employees should not disclose or discuss the invention, either publicly or privately, with persons outside the agency. Premature publication or public disclosure can invoke a statutory bar against obtaining patents. If TVA's property rights are to be secured through a proprietary agreement, any prior unrestricted disclosure of the invention can destroy those rights.

SECURING PROPERTY RIGHTS

TVA pursues patents to protect its rights to most TVA inventions with technical and/or commercial potential. This process is managed by the Office of the General Counsel, and employee inventors of potentially patentable discoveries are responsible for assisting with the patenting process by:

  • Disclosing and describing their inventions in a format prescribed by the U.S. Patent Office, and
  • Providing any other information and materials required during the patenting process.

The Office of the General Counsel provides employee inventors of potentially patentable discoveries with information that details the correct disclosure and description format and provides guidance throughout the application process.

INCOME FROM INVENTIONS

Income from inventions is typically generated by fees for granting licenses. TVA shares a minimum of 15 percent of any income generated as a result of the invention with employee inventors. Employee inventors receive a share of any royalties TVA receives on their inventions by check, which is automatically mailed to the employee's home after TVA receives a royalty payment.

ROLES

Board of Directors

  • Approves or delegates authority for granting of licenses for inventions, discoveries or patents.
  • Authorizes employees to apply for patents or otherwise secure rights in their inventions or discoveries where TVA has decided not to seek these rights.
  • Approves relinquishment of rights in inventions or discoveries arising out of TVA's research or development contracts.

Office of the General Counsel

  • Determines ownership of inventions.
  • Reviews inventions to determine whether they may be patentable.
  • Provides guidance for securing protection of intellectual property, including patents.

Supervisors

  • Encourage and assist employees who have made inventions to make comprehensive and early disclosure to the Office of the General Counsel.

Employee Inventors

  • Responsible for disclosing all inventions made during their TVA employment to their supervisors and to the General Counsel's office.
  • Responsible for documenting the invention.

 

RESOURCE

  • Office of the General Counsel

Last Revised 11/98

 

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