The firms are acting in response to the revised Patent Law scheduled to take effect this April, which calls for companies to work out reasonable reward systems for their researchers. The companies also consider it necessary to raise the morale of their engineers because they intend to promote fuel cell and other new businesses amid growing competition stimulated by the liberalization of power and gas sales.

Tokyo Gas plans to remove the upper limit on compensation for its inventors in February, granting them sums equivalent to 5 per cent of the royalties and other revenues resulting from their work. The current ceiling is 500,000 yen (US$4,828), though up to 3 million yen is paid in special cases.

The new system will allow inventors to object when they are dissatisfied with their compensation or inquire about the reward system during the one-month period after the company has decided to offer them a special payment. Complaints will be considered by an intellectual property committee comprising the heads of the firm's business divisions, which will have the power to change the amount awarded if deemed necessary.

Osaka Gas is also studying a plan to end the existing ceiling on rewards for its inventors in or around April.

(Nikkei)