Ways of Incentivizing Inventors

International Law, Business and Political Science Journal ISSN-L 3235-9799 E-ISSN 3235-9799 IF(Impact Factor) 13.24 https://journallaw.totalh.net/ Volume: 11. Issue 12 November 2025 1 Ways of Incentivizing Inventors Mekhmonov Kambariddin Miradhamovich Professor, Department of Civil Law, Tashkent State University of Law, Doctor of Law [email protected] Abstract The article examines the legal and economic mechanisms for incentivizing inventors and researchers, highlighting the role of intellectual property, copyright, and patent rights in the innovation process. It addresses legal protection for new ideas and inventions, incentives through patents and grants, integrated support from government and private sectors, and international experiences. The study emphasizes the independent development of scientific and technological activities, fair recognition of creators’ work, and the dissemination of results to the broader public. Keywords: invention, innovation, intellectual property, patent, copyright, incentive, research and development. When a specific scientific or technical innovation is created, the question of under what name it should be introduced into civil circulation is of significant importance from the perspectives of copyright, intellectual property, and patent law. Historical experience shows that, in some cases, authors presented the results of their creative activity to the scientific community by associating them with their surnames. At the same time, linking names to personal surnames can, in certain cases, create inconveniences for future generations. From both a scientific and legal standpoint, it is crucial to emphasize that naming should focus not on excessive regulation but on descriptive or terminological significance. Previously, in order to encourage new ideas and inventions, states practiced awarding prizes, honorary titles, and medals. However, the lack of sufficient systematic application of this system led to a slowdown in recognizing and honoring the work of International Law, Business and Political Science Journal ISSN-L 3235-9799 E-ISSN 3235-9799 IF(Impact Factor) 13.24 https://journallaw.totalh.net/ Volume: 11. Issue 12 November 2025 2 creative individuals. For instance, although there is historical evidence of awards given for the development of a new cotton variety, the lack of targeted and systematic incentives did not significantly contribute to the advancement of scientific and innovative activities. Even today, the results of creative work sometimes remain confined to documents and archives. Among the general population, especially entrepreneurs, insufficient knowledge and skills in this area prevent effective utilization of these results, and there is a lack of sufficient interest in incorporating the outcomes of intellectual activity into practical application in a systematic manner 1 . The absence of necessary and effective conditions for creators negatively affects their development and motivation. Inefficiencies in cooperation between state agencies and responsible organizations, as well as a shortage of experienced scholars in the field, further exacerbate the problem. Educational institutions do not implement effective measures to protect and promote creative outcomes; systems to prevent plagiarism and unlawful use are also insufficient. Therefore, it is an urgent task to broadly involve industrial property objects in production, ensure their commercial circulation under legislative frameworks, and effectively safeguard the interests of rights holders. On August 3, 2017, during a meeting with a group of creators, the President of the Republic of Uzbekistan, Shavkat Mirziyoyev, drew attention to certain shortcomings and critically assessed the situation 2 . Certainly, the aforementioned viewpoint regarding systemic shortcomings underscores the significance of legal and administrative incentive mechanisms. In this context, it becomes evident that awards and titles in the fields of industry and science are often conferred based on subjective criteria, and they do not fully reflect the results of scientific or creative activity. From this perspective, it is essential that the system of incentives for inventors and specialists engaged in scientific activity be grounded in 1 Ўзбекистон Республикаси Президентининг 2022 йил 26 апрелдаги “Интеллектуал мулк соҳасини янада ривожлантиришга оид қўшимча чора-тадбирлар тўғрисида”ги ПҚ–221-сон Қарори. //Қонунчилик маълумотлари миллий базаси, 26.04.2022 й., 07/22/221/0357-сон 2 https://sputniknews.uz/20170806 International Law, Business and Political Science Journal ISSN-L 3235-9799 E-ISSN 3235-9799 IF(Impact Factor) 13.24 https://journallaw.totalh.net/ Volume: 11. Issue 12 November 2025 3 clear legal foundations or guaranteed through normative legal acts. The Bloomberg Innovation Index evaluates countries based on their “innovation capacity” and constructs its ranking using seven equally weighted metrics: R&D Intensity – the proportion of research and development (R&D) expenditure relative to the country’s GDP. Manufacturing Value‑Added – the economic contribution of the manufacturing sector, representing added value from industrial production. Productivity – labor productivity and its growth, measured as output per worker relative to GDP or Gross National Income (GNI). High‑Tech Density – the number of high-tech public corporations located in the country and their relative position among global companies. Tertiary Efficiency – the efficiency of higher education, including enrollment in tertiary education, the share of highly educated individuals, and graduates in scientific and engineering disciplines. Researcher Concentration – the number of specialists, researchers, and PhD students involved in research relative to the total population. Patent Activity – the number of patent applications and grants, as well as related indicators, such as patents per $1 million of R&D expenditure 3 . South Korea’s leading position in the Bloomberg Innovation Index for the past nine years can primarily be explained by the country’s strong investment in research and development (R&D), its advanced industrial capacity, and a high value‑added manufacturing sector. In addition, the presence of high‑technology companies such as Samsung, LG, and SK Hynix has increased the country’s high‑tech density. The effective participation of scientists and researchers, including PhD students and higher education institutions, as well as a high level of patent activity, further links these innovative achievements to robust legal protection 4 . 3 https://www.bloomberg.com/graphics/2015-innovative-countries/ 4 https://www.bloomberg.com/news/articles/2021-02-03/south-korea-leads-world-in-innovation-u-s-drops-out-of-top-10. International Law, Business and Political Science Journal ISSN-L 3235-9799 E-ISSN 3235-9799 IF(Impact Factor) 13.24 https://journallaw.totalh.net/ Volume: 11. Issue 12 November 2025 4 Some studies indicate that scientists and engineers do not necessarily require patents to invent or be incentivized 5 . Existing incentive systems and remuneration for scientific activity provide sufficient motivation for creativity and the disclosure of knowledge to the public. Similar views have been expressed by other authors, noting that research activities, as well as the development of technological innovations and scientific knowledge, can occur independently of economic motives and needs 6 . However, the motivation of scientists and engineers is not solely dependent on patents or legal protection. Existing incentive systems, including remuneration for creativity and mechanisms supporting scientific activity, can provide sufficient motivation for researchers and engineers to make knowledge and innovations publicly accessible. From this perspective, scientific research, technological development, and the creation of scientific knowledge are often conducted independently of economic motives. Therefore, the primary objective in improving legal incentive systems should be to ensure fair recognition of the author’s work, support creative and scientific activity, and effectively regulate the dissemination of innovations to the broader public. Patenting serves as a mechanism for knowledge dissemination. This is evidenced by the fact that patent holders often utilize patents not primarily for financial gain, but to obtain other forms of recognition, such as acknowledgment and increased visibility through knowledge sharing 7 . Generous research funding agencies still encourage scientists striving for advanced research to demonstrate the novelty of their work and achieve recognition and prestige based on academic values. In the academic sphere, inventors are required to provide detailed information about their innovations and knowledge. The widespread dissemination of research 5 Thursby, J. G., & Thursby, M. C. (2007). University licensing. Oxford Review of Economic Policy, 23, 620–639. doi:10.1093/oxrep/grm031. 6 Rosenberg, N. (1974). Science, invention and economic growth. The Economic Journal, 84, 90–108. doi:10.2307/2230485 7 Long, C. (2002). Patent signals. The University of Chicago Law Review, 69, 625–679. https://doi.org/10.2307/1600501; Long, J. S., & Freese, J. (2006). Regression models for categorical dependent variables using STATA (2nd ed.). College Station: Stata Press. International Law, Business and Political Science Journal ISSN-L 3235-9799 E-ISSN 3235-9799 IF(Impact Factor) 13.24 https://journallaw.totalh.net/ Volume: 11. Issue 12 November 2025 5 results not only enables individuals to utilize these inventions but also obliges them to recognize and respect the scientific achievements presented therein. However, concerns may arise that increasing universities’ activity in obtaining patents could threaten the open nature of university research and lead to the commercialization of scientific investigations. The primary rights protected by copyright include reproduction, distribution, public performance, translation, adaptation, and similar acts. Unauthorized use of works protected by copyright can result in liability and, depending on the jurisdiction, may lead to civil and/or criminal penalties. Over time, the foundations for protecting copyright have evolved 8 . The intellectual property (IP) system in the European Union provides inventors and designers with legal protection and enables them to derive economic benefits from their innovations, inventions, and product designs through monopoly rights. This legal framework plays a crucial role in strengthening companies’ competitiveness in the market, maintaining their brands, and attracting consumers. Furthermore, programs such as the EU Intellectual Property (IP) Helpdesk offer inventors and entrepreneurs technical and financial assistance in developing IP strategies, obtaining patents, and receiving legal support, making it an effective instrument for promoting innovation and development in the contemporary political-legal environment. Specifically, under the SME Fund program, grant funding of €60 million was allocated in 2023. This mechanism allows enterprises to partially cover the costs associated with registering their inventions, industrial designs, and trademarks at the national, regional, or European level. The legal and economic significance of the program lies in its ability to enhance the market competitiveness of innovative products by providing legal protection for intellectual property, strengthening monopoly rights, and encouraging investment in entrepreneurial activity. Moreover, the grant mechanism 8 Kur, A., Dreier, T., & Luginbuehl, S. (2019). European intellectual property law: text, cases and materials. Edward Elgar Publishing. https://www.ivir.nl/copyrightcode/introduction/ International Law, Business and Political Science Journal ISSN-L 3235-9799 E-ISSN 3235-9799 IF(Impact Factor) 13.24 https://journallaw.totalh.net/ Volume: 11. Issue 12 November 2025 6 is closely linked to a key priority of the EU’s intellectual property policy – namely, the institutional and financial support of innovation, research, and technology commercialization – thereby creating a competitive environment for researchers and manufacturers based on legal security and economic stability 9 . In India, the system for legally and institutionally incentivizing inventors and innovation actors is primarily implemented through the national intellectual property policy and government programs supporting startups. In particular, under the “Startup India” platform, the SIPP (Start-Ups Intellectual Property Protection) mechanism provides material and technical assistance during the process of registering patents, designs, and trademarks. This includes covering government fees for “facilitator” services, thereby expanding opportunities for the commercialization of innovations 10 . The Chinese government has launched a series of scientific and industrial projects focused on batteries to promote investment in the development and industrialization of electric vehicles. Additionally, it implements policies to subsidize infrastructure investments, in particular, the creation of charging networks 11 . China’s approach to developing the electric vehicle industry–through financing research and development projects in battery technologies, providing subsidies for infrastructure (particularly charging stations), and promoting investment–is aimed at the strategic modernization of the national industrial sector. However, experts from the European Union have identified certain aspects of this policy–such as dumping strategies, artificially lowering prices through state subsidies, and expanding market share via aggressive market entry–as potential conflicts with international trade rules and World Trade Organization (WTO) standards. If subsidies disrupt market mechanisms and undermine competition, this may be interpreted as creating an “adverse 9 https://single-market-economy.ec.europa.eu/news/new-2023-sme-fund-eu60-million-protect-intellectual-property-eusmes-2023-01-23_en?utm_source=chatgpt.com 10 Innovation and IPRs in China and India. Myths, Realities and Opportunities. 2016. https://link.springer.com/book/10.1007/978-981-10-0406-3 11 Kung-Chung Liu, Uday S. Racherla. Innovation, Economic Development, and Intellectual Property in India and China. 2019. 18-19-б. International Law, Business and Political Science Journal ISSN-L 3235-9799 E-ISSN 3235-9799 IF(Impact Factor) 13.24 https://journallaw.totalh.net/ Volume: 11. Issue 12 November 2025 7 competitive advantage.” In our view, the legal assessment of this issue should focus on finding a balance between international trade rules (such as GATT and the Agreement on Subsidies and Countervailing Measures) and national industrial policy. Within research studies, this conflict can be analyzed as a legal balancing problem between promoting innovation and technological development and ensuring fair competition. The incentivization of scientific researchers is provided for under national law. In particular, according to the Regulation on the Procedure for Awarding Academic Degrees 12 , documents granting protection (ownership) of intellectual property objects, such as patents, are recognized as scientific work. The Regulation stipulates that a patent granted for an invention or a breeding achievement is considered equivalent to a published article abroad (Clause 21). However, this provision and recognition are appropriate only if the incentive is aimed solely at conducting scientific work. In practice, incentives need to be understood more broadly, encompassing awards such as the Nobel Prize and others. Some scholars highlight the distinctive characteristics of artificial intelligence (AI). O. Okulov considers AI not as a subject but as a legal object, since it lacks its own will, interests, and independent consciousness 13 . Ronald Chandra and Yoga Priastomo emphasize that AI can be understood as the study and development of computer programs that operate intelligently, which in many respects represents the ultimate goal of computer programming 14 . I.V. Ponkin and A.I. Redkina argue that AI possesses the ability to autonomously adapt its behavior, engage in deep self-learning (to solve a specific class of problems or even broader tasks), and rejuvenate itself along with its 12 Илмий даражалар бериш тартиби тўғрисидаги Низом. Ўзбекистон Республикаси қонун ҳужжатлари тўплами, 2017 й., 25-сон, 569-модда. 13 Окюлов О. Правовой статус интеллектуальной собственности. Т.: ТГЮИ, Дисс. на соис. уч.степ. докт.юрид.наук. 2000. С.14,36. 14 Chandra R., Prihastomo Y. Artificial Intelligence Definition: A Review //<https://pdfs.semanticscholar.org/d959 –3 p. – P.1. International Law, Business and Political Science Journal ISSN-L 3235-9799 E-ISSN 3235-9799 IF(Impact Factor) 13.24 https://journallaw.totalh.net/ Volume: 11. Issue 12 November 2025 8 subsystems 15 . S. Gulyamov and S. Bozarov propose a distinctive approach in this area. According to them, artificial intelligence can assist in the protection of human rights, but it must rely on a robust legal framework that establishes unified requirements for security and transparency 16 . . P.M. Morhat rejects granting rights over intellectual activity produced with AI, instead proposing its treatment as a service, hybrid legal authority, or conditional rights allocation 17 . I.Rustambekov, on the other hand, emphasizes the specificity of civil-law relations on the Internet, expressing it in direct connection with the virtual environment 18 . The honorary title “Honored Inventor and Rationalizer of the Republic of Uzbekistan” is awarded to the authors of inventions and rationalization proposals that have been introduced into the national economy and have yielded significant economic benefits. It is also conferred on individuals who have contributed to the development of inventive and rationalization activities and to the implementation of inventions and rationalization proposals in production 19 . The “Concept for the Development of Science and Technology until 2030,” approved by the Decree No. PF-6097 of the President of the Republic of Uzbekistan on October 29, 2020, is an important legal document for the strategic orientation of the country’s scientific and innovation policy. One of the main objectives of this concept is to ensure that by 2030 Uzbekistan ranks among the world’s top 50 countries in the Global Innovation Index. The concept also envisions the effective coordination of innovation and scientific activities between the public and private sectors, which 15 Понкин И.В., Редькина А.И. Искусственный интеллект и право интеллектуальной собственности // Интеллектуальная собственность. авторское право и смежные права. – 2018. – № 2. – С. 35–44. – С. 37–38. 16 Gulyamov S., Bozarov S. Strategies future prospects of artificial intelligence: world experience. https://wwwscholarexpress.netVolume-9April-2022. 66-74-б. 17 Морхат П.М. Правосубъектность искусственного интеллекта в сфере права интеллектуальной собственности: гражданско-правовые проблемы. Диссертация на соискание учёной степени доктора юридических наук. Москва, 2018. Стр.238-240. 18 Рустамбеков И.Р. Интернет тармоғида фуқаролик-ҳуқуқий муносабатларни тартибга солиш: юрид. фан. докт. дис. ... автореф. –Тошкент: 2017. –13 б. 19 Ўзбекистон Республикасининг “Ўзбекистон Республикасининг фахрий унвонларини таъсис этиш тўғрисида”ги қонуни. // Ўзбекистон Республикаси Олий Мажлисининг Ахборотномаси, 1996 й., 5-6-сон, 64-модда. International Law, Business and Political Science Journal ISSN-L 3235-9799 E-ISSN 3235-9799 IF(Impact Factor) 13.24 https://journallaw.totalh.net/ Volume: 11. Issue 12 November 2025 9 enables the enhancement of scientific activity through the protection of intellectual property rights, grants, and financial incentives. As a new mechanism, the document allows for commissioning and financing the training of candidates of sciences or philosophers (PhD) and doctors of sciences (DSc) within the framework of grant projects 20 . In our view, the state should incentivize the creation and utilization of inventions, utility models, and industrial designs, providing their authors–as well as patent holders and licensees who use the corresponding inventions, utility models, and industrial designs–with privileges in accordance with the legislation of the Republic of Uzbekistan. The system for incentivizing inventors and scientific researchers should not be limited solely to patents or material rewards. Copyright, intellectual property, and patent protection play a crucial role in ensuring the fair recognition of their work, supporting scientific and creative activities, and disseminating the results to the broader public. At the same time, an effective and systematic legal and administrative incentive system is a key condition for promoting scientific activity and rapidly supporting innovation. In the current context, the integrated development of the public and private sectors in science and technology, the provision of grants, titles, honorary distinctions, and intellectual property objects, as well as learning from international experience, play a vital role in shaping an effective scientific and economic environment. From this perspective, Uzbekistan’s legal framework and strategies should ensure the effective protection of inventions and scientific knowledge, their development in accordance with legislation, and the creation of economic and cultural value through patents and licenses. 20 Ўзбекистон Республикаси Президентининг “Илм-фанни 2030 йилгача ривожлантириш концепциясини тасдиқлаш тўғрисида”ги ПФ-6097-сон Фармони. // Қонун ҳужжатлари маълумотлари миллий базаси, 30.10.2020 й., 06/20/6097/1431-сон.