The German Act Relating to Inventions of Employees (the Act) provides that an employer may, within a period of four months, claim an invention made by an employee which either results from the employee's work under the employment contract or is essentially based on the know-how of the employer. For such a claimed invention, a patent application must be filed. In return, the employee is entitled to compensation when the invention is used by the employer. Unfortunately, the administrative provisions of the Act cause considerable paper work. Large companies estimate that the costs for handling employment inventions in compliance with the provisions of the Act are in the same range as the compensation to be paid to the employed inventors for the use of these inventions.