A bill to create a comprehensive Federal system for determining the ownership of and amount of compensation to be paid for inventions made by employed persons.

Establishes a uniform system for determining patent rights in inventions made by any employee, private or government, during his employment when the invention has grown out of the type of work performed or is derived from experiences gained on the job.

Requires an employee to give his employer immediate notice of the service invention. Permits an employer to claim exclusive rights in such invention. Deems such invention free if such rights are not claimed. Entitles the employee to the fair market value of those rights, adjusted for the contribution the operations of the employer made to the invention. Permits the adjustment of such compensaton due to a substantial change in circumstances. Requires that all disputes relating to compensation which cannot be agreed upon be placed before the Arbitration Board.

Requires an employer who claims exclusive rights to immediately apply for a patent in the inventor's name, or the service invention becomes free. Entitles the inventor to patent rights in any foreign countries which the employer has not claimed. Directs the employer to keep the employee informed at all stages of the patent application proceedings. Requires the employer to notify an employee of any intent to abandon the invention in enough time to permit the assignment and protection of rights of the employee. Requires an employer to apply to the Arbitration Board whenever he deems that an invention is not patentable because it is not in his legitimate business interests to have the invention become publicly known.

Requires an employee to notify an employer immediately whenever he has made a free, non-service related invention. Gives the employer three months to counter such contention. Prohibits an employer from disclosing a free invention without the employee's consent.

Establishes an Arbitration Board in the Patent Office to arbitrate disputes between such employers and employees. Permits judicial review of Board determinations. Directs the Secretary of Labor to issue guidelines for determining compensation to be paid for exclusive rights in service inventions and trade secrets.

Prohibits discrimination against any employee who exercises his rights under these provisions. Permits civil action to enforce these provisions.