Abstract
A theoretical explanation is given to confirm university researcher's inventions as employee inventions. The Japanese Patent Law states employee inventions are those that fall within the field of employer's business and those invented during the course of his or her employment. A dominant theory denies employee invention for university on a legal interpretation of relationship between employer's business and automatic non-exclusive licenses, since a university has no benefit of such licenses. Rather, employers value transfer of ownership more than having only non-exclusive licenses. Removing theoretical link between employer's business and non-exclusive license by valuing practice of transfer of ownership, and having new legislatures defining university business, it is now possible to conclude that university inventions meet the requirements of employee inventions.