PatentLawofthePeople’sRepublicofChina

(Adoptedatthe4thMeetingoftheStandingCommitteeoftheSixthNationalPeople’sCongressonMarch12,1984.AmendedinaccordancewiththeDecisionoftheStandingCommitteeoftheSeventhNationalPeople’sCongressonAmendingthePatentLawofthePeople’sRepublicofChinaatits27thMeetingonSeptember4,1992.AmendedagaininaccordancewiththeDecisionoftheStandingCommitteeoftheNinthNationalPeople’sCongressonAmendingthePatentLawofthePeople’sRepublicofChinaadoptedatits17thMeetingonAugust25,2000)

CHAPTERIGENERALPROVISIONS

Article1.ThisLawisenactedtoprotectpatentrightsforinventions-creationstoencourageinvention-creationtofosterthespreadingandapplicationofinventions-creationsandtopromotethedevelopmentandinnovationofscienceandtechnologyformeetingtheneedsoftheconstructionofsocialistmodernization.

Article2.InthisLaw“inventions-creations”mean“inventions,utilitymodelsanddesigns”.

Article3.ThepatentadministrationdepartmentundertheStateCouncilisresponsibleforthepatentworkthroughoutthecountry.Itreceivesandexaminespatentapplicationsandgrantspatentrightsforinventions-creationsinaccordancewithlaw.

Theadministrativeauthorityforpatentaffairsunderthepeople’sgovernmentsofprovinces,autonomousregionsandmunicipalitiesdirectlyundertheCentralGovernmentareresponsiblefortheadministrativeworkconcerningpatentsintheirrespectiveadministrativeareas.

Article4.Whereaninvention-creationforwhichapatentisappliedforrelatestothesecurityorothervitalinterestsoftheStateandisrequiredtobekeptsecret,theapplicationshallbetreatedinaccordancewiththerelevantprescriptionsoftheState.

Articles5.Nopatentrightshallbegrantedforanyinvention-creationthatiscontrarytothelawsoftheStateorsocialmoralityorthatisdetrimentaltopublicinterest.

Article6.Aninvention-creation,madebyapersoninexecutionofthetasksoftheentitytowhichhebelongs,ormadebyhimmainlybyusingthematerialandtechnicalmeansoftheentityisaserviceinvention-creation.Foraserviceintention-creation,therighttoapplyforapatentbelongstotheentity.Aftertheapplicationisapproved,theentityshallbethepatentee.

Foranon-serviceinvention-creation,therighttoapplyforapatentbelongstotheinventororcreator.Aftertheapplicationisapproved,theinventororcreatorshallbethepatentee.

Inrespectofaninvention-creationmadebyapersonusingthematerialandtechnicalmeansofanentitytowhichhebelongs,wheretheentityandtheinventororcreatorhaveenteredintoacontractinwhichtherighttoapplyforandownapatentisprovidedfor,suchaprovisionshallapply.

Article7.Noentityorindividualshallpreventtheinventororcreatorfromfilinganapplicationforapatentforanon-serviceinvention-creation.

Article8.Foraninvention-creationjointlymadebytwoormoreentitiesorindividuals,ormadebyanentityorindividualinexecutionofacommissiongiventoitorhimbyanotherentityorindividual,therighttoapplyforapatentbelongs,unlessotherwiseagreedupon,totheentityorindividualthatmade,ortotheentitiesorindividualsthatjointlymade,theinvention-creation.Aftertheapplicationisapproved,theentityorindividualthatappliedforitshallbethepatentee.

Article9.Wheretwoormoreapplicantsfileapplicationsforpatentfortheidenticalinvention-creation,thepatentrightshallbegrantedtotheapplicantwhoseapplicationwasfiledfirst.

Article10.Therighttoapplyforapatentandthepatentrightmaybeassigned.

Anyassignment,byaChineseentityorindividual,oftherighttoapplyforapatent,orofthepatentright,toaforeignermustbeapprovedbythecompetentdepartmentconcernedoftheStateCouncil.Wheretherighttoapplyforapatentorthepatentrightisassigned,thepartiesshallconcludeawrittencontractandregisteritwiththepatentadministrationdepartmentundertheStateCouncil.ThepatentadministrationdepartmentundertheStateCouncilshallannouncetheregistration.Theassignmentshalltakeeffectasofthedateofregistration.

Article11.Afterthegrantofthepatentrightforaninventionorutilitymodel,exceptwhereotherwiseprovidedforinthisLaw,noentityorindividualmay,withouttheauthorizationofthepatentee,exploitthepatent,thatis,make,use,offertosell,sellorimportthepatentedproduct,orusethepatentedprocess,anduse,offertosell,sellorimporttheproductdirectlyobtainedbythepatentedprocess,forproductionorbusinesspurposes.

Afterthegrantofthepatentrightforadesign,noentityorindividualmay,withouttheauthorizationofthepatentee,exploitthepatent,thatis,make,sellorimporttheproductincorporatingitsorhispatenteddesign,forproductionorbusinesspurposes.

Article12.Anyentityorindividualexploitingthepatentofanothershallconcludewiththepatenteeawrittenlicensecontractforexploitationandpaythepatenteeafeefortheexploitationofthepatent.Thelicenseehasnorighttoauthorizeanyentityorindividual,otherthanthatreferredtointhecontractforexploitation,toexploitthepatent.

Article13.Afterthepublicationoftheapplicationforapatentforinvention,theapplicantmayrequiretheentityorindividualexploitingtheinventiontopayanappropriatefee.

Article14.Whereanypatentforinvention,belongingtoanyState-ownedenterpriseorinstitution,isofgreatsignificancetotheinterestoftheStateortothepublicinterest,thecompetentdepartmentsconcernedundertheStatecouncilandthepeople’sgovernmentsofprovinces,autonomousregionsormunicipalitiesdirectlyundertheCentralGovernmentmay,afterapprovalbytheStateCouncil,decidethatthepatentedinventionbespreadandappliedwithintheapprovedlimits,andallowdesignatedentitiestoexploitthatinvention.Theexploitingentityshall,accordingtotheregulationsoftheState,payafeeforexploitationtothepatentee.

AnypatentforinventionbelongingtoaChineseindividualoranentityundercollectiveownership,whichisofgreatsignificancetotheinterestoftheStateortothepublicinterestandisinneedofspreadingandapplication,maybetreatedalikebymakingreferencetotheprovisionsoftheprecedingparagraph.

Article15.Thepatenteehastherighttoaffixapatentmarkingandtoindicatethenumberofthepatentonthepatentedproductoronthepackingofthatproduct.

Article16.Theentitythatisgrantedapatentrightshallawardtotheinventororcreatorofaserviceinvention--creationarewardand,uponexploitationofthepatentedinvention-creation,shallpaytheinventororcreatorareasonableremunerationbasedontheextentofspreadingandapplicationandtheeconomicbenefitsyielded.

Article17.Theinventororcreatorhastherighttobenamedassuchinthepatentdocument.

Article18.Whereanyforeigner,foreignenterpriseorotherforeignorganizationhavingnohabitualresidenceorbusinessofficeinChinafilesanapplicationforapatentinChina,theapplicationshallbetreatedunderthisLawinaccordancewithanyagreementconcludedbetweenthecountrytowhichtheapplicantbelongsandChina,orinaccordancewithanyinternationaltreatytowhichbothcountriesareparty,oronthebasisoftheprincipleofreciprocity.

Article19.Whereanyforeigner,foreignenterpriseorotherforeignorganizationhavingnohabitualresidenceorbusinessofficeinChinaappliesforapatent,orhasotherpatentmatterstoattendto,inChina,itorheshallappointapatentagencydesignatedbythepatentadministrationdepartmentundertheStateCounciltoactashisoritsagent.

WhereanyChineseentityorindividualappliesforapatentorhasotherpatentmatterstoattendtointhecountry,itorhemayappointapatentagencytoactasitsorhisagent.

Thepatentagencyshallcomplywiththeprovisionsoflawsandadministrativeregulations,andhandlepatentapplicationsandotherpatentmattersaccordingtotheinstructionsofitsclients.Inrespectofthecontentsofitsclients’inventions-creations,exceptforthosethathavebeenpublishedorannounced,theagencyshallbeartheresponsibilityofkeepingthemconfidential.TheadministrativeregulationsgoverningthepatentagencyshallbeformulatedbytheStateCouncil.

Article20.WhereanyChineseentityorindividualintendstofileanapplicationinaforeigncountryforapatentforinvention-creationmadeinChina,itorheshallfilefirstanapplicationforpatentwiththepatentadministrationdepartmentundertheStateCouncil,appointapatentagencydesignatedbythesaiddepartmenttoactasitsorhisagent,andcomplywiththeprovisionsofArticle4ofthisLaw.

AnyChineseentityorindividualmayfileaninternationalapplicationforpatentinaccordancewithanyinternationaltreatyconcernedtowhichChinaisparty.Theapplicantfilinganinternationalapplicationforpatentshallcomplywiththeprovisionsoftheprecedingparagraph.

ThepatentadministrationdepartmentundertheStateCouncilshallhandleanyinternationalapplicationforpatentinaccordancewiththeinternationaltreatyconcernedtowhichChinaisparty,thisLawandtherelevantregulationsoftheStateCouncil.

Article21.ThepatentadministrationdepartmentundertheStateCouncilanditsPatentReexaminationBoardshallhandleanypatentapplicationandpatent-relatedrequestaccordingtolawandinconformitywiththerequirementsforbeingobjective,fair,correctandtimely.

Untilthepublicationorannouncementoftheapplicationforapatent,staffmembersofthepatentadministrationdepartmentundertheStateCouncilandotherpersonsinvolvedhavethedutytokeepitscontentssecret.

CHAPTERIIREQUIREMENTSFORGRANTOFPATENTRIGHT

Article22.Anyinventionorutilitymodelforwhichpatentrightmaybegrantedmustpossessnovelty,inventivenessandpracticalapplicability.

Noveltymeansthat,beforethedateoffiling,noidenticalinventionorutilitymodelhasbeenpubliclydisclosedinpublicationsinthecountryorabroadorhasbeenpubliclyusedormadeknowntothepublicbyanyothermeansinthecountry,norhasanyotherpersonfiledpreviouslywiththePatentAdministrationDepartmentUndertheStateCouncilanapplicationwhichdescribedtheidenticalinventionorutilitymodelandwaspublishedafterthesaiddateoffiling.

Inventivenessmeansthat,ascomparedwiththetechnologyexistingbeforethedateoffiling,theinventionhasprominentsubstantivefeaturesandrepresentsanotableprogressandthattheutilitymodelhassubstantivefeaturesandrepresentsprogress.

Practicalapplicabilitymeansthattheinventionorutilitymodelcanbemadeorusedandcanproduceeffectiveresults.

Article23.Anydesignforwhichpatentrightmaybegrantedmustnotbeidenticalwithandsimilartoanydesignwhich,beforethedateoffiling,hasbeenpubliclydisclosedinpublicationsinthecountryorabroadorhasbeenpubliclyusedinthecountry,andmustnotbeinconflictwithanypriorrightofanyotherperson.

Article24.Aninvention-creationforwhichapatentisappliedfordoesnotloseitsnoveltywhere,withinsixmonthsbeforethedateoffiling,oneofthefollowingeventsoccurred:

(1)whereitwasfirstexhibitedataninternationalexhibitionsponsoredorrecognizedbytheChineseGovernment;

(2)whereitwasfirstmadepublicataprescribedacademicortechnologicalmeeting;

(3)whereitwasdisclosedbyanypersonwithouttheconsentoftheapplicant.

Article25.Foranyofthefollowing,nopatentrightshallbegranted:

(1)scientificdiscoveries;

(2)rulesandmethodsformentalactivities;

(3)methodsforthediagnosisorforthetreatmentofdiseases;

(4)animalandplantvarieties;

(5)substancesobtainedbymeansofnucleartransformation.

Forprocessesusedinproducingproductsreferredtoinitems(4)oftheprecedingparagraph,patentrightmaybegrantedinaccordancewiththeprovisionsofthisLaw.

CHAPTERIIIAPPLICATIONFORPATENT

Article26.Whereanapplicationforapatentforinventionorutilitymodelisfiled,arequest,adescriptionanditsabstract,andclaimsshallbesubmitted.

Therequestshallstatethetitleoftheinventionorutilitymodel,thenameoftheinventororcreator,thenameandtheaddressoftheapplicantandotherrelatedmatters.

Thedescriptionshallsetforththeinventionorutilitymodelinamannersufficientlyclearandcompletesoastoenableapersonskilledintherelevantfieldoftechnologytocarryitout;wherenecessary,drawingsarerequired.Theabstractshallstatebrieflythemaintechnicalpointsoftheinventionorutilitymodel.

Theclaimsshallbesupportedbythedescriptionandshallstatetheextentofthepatentprotectionaskedfor.

Article27.Whereanapplicationforapatentfordesignisfiled,arequest,drawingsorphotographsofthedesignshallbesubmitted,andtheproductincorporatingthedesignandtheclasstowhichthatproductbelongsshallbeindicated.

Article28.ThedateonwhichthePatentAdministrationDepartmentUndertheStateCouncilreceivestheapplicationshallbethedateoffiling.Iftheapplicationissentbymail,thedateofmailingindicatedbythepostmarkshallbethedateoffiling.

Article29.Where,withintwelvemonthsfromthedateonwhichanyapplicantfirstfiledinaforeigncountryanapplicationforaPatentforinventionorutilitymodel,orwithinsixmonthsfromthedateonwhichanyapplicantfirstfiledinaforeigncountryanapplicationforapatentfordesign,heoritfilesinChinaanapplicationforapatentforthesamesubjectmatter,heoritmay,inaccordancewithanyagreementconcludedbetweenthesaidforeigncountryandChina,orinaccordancewithanyinternationaltreatytowhichbothcountriesareparty,oronthebasisoftheprincipleofmutualrecognitionoftherightofpriority,enjoyarightofpriority.

Where,withintwelvemonthsfromthedateonwhichanyapplicantfirstfiledinChinaanapplicationforapatentforinventionorutilitymodel,heoritfileswiththePatentAdministrationDepartmentUndertheStateCouncilanapplicationforapatentforthesamesubjectmatter,heoritmayenjoyarightofpriority.

Article30.Anyapplicantwhoclaimstherightofpriorityshallmakeawrittendeclarationwhentheapplicationisfiled,andsubmit,withinthreemonths,acopyofthepatentapplicationdocumentwhichwasfirstfiled;iftheapplicantfailstomakethewrittendeclarationortomeetthetimelimitforsubmittingthepatentapplicationdocument,theclaimtotherightofpriorityshallbedeemednottohavebeenmade.

Article31.Anapplicationforapatentforinventionorutilitymodelshallbelimitedtooneinventionorutilitymodel.Twoormoreinventionsorutilitymode1sbelongingtoasinglegeneralinventiveconceptmaybefiledasoneapplication.

Anapplicationforapatentfordesignshallbelimitedtoonedesignincorporatedinoneproduct.Twoormoredesignswhichareincorporatedinproductsbelongingtothesameclassandaresoldorusedinsetsmaybefiledasoneapplication.

Article32.Anapplicantmaywithdrawhisoritsapplicationforapatentatanytimebeforethepatentrightisgranted.

Article33.Anapplicantmayamendhisoritsapplicationforapatent,buttheamendmenttotheapplicationforapatentforinventionorutilitymodelmaynotgobeyondthescopeofthedisclosurecontainedintheinitialdescriptionandclaims,andtheamendmenttotheapplicationforapatentfordesignmaynotgobeyondthescopeofthedisclosureasshownintheinitialdrawingsorphotographs.

CHAPTERIVEXAMINATIONANDAPPROVALOFAPPLICATIONFORPATENT

Article34.Where,afterreceivinganapplicationforapatentforinvention,thePatentAdministrationDepartmentUndertheStateCouncil,uponpreliminaryexamination,findstheapplicationtobeinconformitywiththerequirementsofthisLaw,itshallpublishtheapplicationpromptlyaftertheexpirationofeighteenmonthsfromthedateoffiling.Upontherequestoftheapplicant,thePatentAdministrationDepartmentUndertheStateCouncilpublishestheapplicationearlier.

Article35.Upontherequestoftheapplicantforapatentforinvention,madeatanytimewithinthreeyearsfromthedateoffiling,thePatentAdministrationDepartmentUndertheStateCouncilwillproceedtoexaminetheapplicationastoitssubstance.If,withoutanyjustifiedreason,theapplicantfailstomeetthetimelimitforrequestingexaminationastosubstance,theapplicationshallbedeemedtohavebeenwithdrawn.

ThePatentAdministrationDepartmentUndertheStateCouncilmay,onitsowninitiative,proceedtoexamineanyapplicationforapatentforinventionastoitssubstancewhenitdeemsitnecessary.

Article36.Whentheapplicantforapatentforinventionrequestsexaminationastosubstance,heorlitshallfurnishpre-filingdatereferencematerialsconcerningtheinvention.Foranapplicationforapatentforinventionthathasbeenalreadyfiledinaforeigncountry,thepatentadministrationdepartmentundertheStateCouncilmayasktheapplicanttofurnishwithinaspecifiedtimelimitdocumentsconcerninganysearchmadeforthepurposeofexaminingthatapplication,orconcerningtheresultsofanyexaminationmade,inthatcountry.If,attheexpirationofthespecifiedtimelimit,withoutanyjustifiedreason,thesaiddocumentsarenotfurnished,theapplicationshallbedeemedtohavebeenwithdrawn.

Article37.WherethePatentAdministrationDepartmentUndertheStateCouncil,afterithasmadetheexaminationastosubstanceoftheapplicationforapatentforinvention,findsthattheapplicationisnotinconformitywiththeprovisionsofthisLaw,itshallnotifytheapplicantandrequesthimorittosubmit,withinaspecifiedtimelimit,hisoritsobservationsortoamendtheapplication.If,withoutanyjustifiedreason,thetimelimitformakingresponseisnotmet,theapplicationshallbedeemedtohavebeenwithdrawn.

Article38.Where,aftertheapplicanthasmadetheobservationsoramendments,thePatentAdministrationDepartmentUndertheStateCouncilfindsthattheapplicationforapatentforinventionisstillnotinconformitywiththeprovisionsofthisLaw,theapplicationshallberejected.

Article39.Whereitisfoundafterexaminationastosubstancethatthereisnocauseforrejectionoftheapplicationforapatentforinvention,thepatentadministrationdepartmentundertheStateCouncilshallmakeadecisiontograntthepatentrightforinvention,issuethecertificateofpatentforinvention,andregisterandannounceit.Thepatentrightforinventionshalltakeeffectasofthedateoftheannouncement.

Article40.Whereitisfoundafterpreliminaryexaminationthatthereisnocauseforrejectionoftheapplicationforapatentforutilitymodelordesign,thepatentadministrationdepartmentundertheStateCouncilshallmakeadecisiontograntthepatentrightforutilitymodelorthepatentrightfordesign,issuetherelevantpatentcertificate,andregisterandannounceit.Thepatentrightforutilitymodelordesignshalltakeeffectasofthedateoftheannouncement.

Article41.ThepatentadministrationdepartmentundertheStateCouncilshallsetupaPatentReexaminationBoard.Whereanapplicantforpatentisnotsatisfiedwiththedecisionofthesaiddepartmentrejectingtheapplication,theapplicantmay,withinthreemonthsfromthedateofreceiptofthenotification,requestthePatentReexaminationBoardtomakeareexamination.ThePatentReexaminationBoardshall,afterreexamination,makeadecisionandnotifytheapplicantforpatent.

WheretheapplicantforpatentisnotsatisfiedwiththedecisionofthePatentReexaminationBoard,itorhemay,withinthreemonthsfromthedateofreceiptofthenotification,institutelegalproceedingsinthepeople’scourt.

CHAPTERVDURATION,CESSATIONANDINVALIDATIONOFPATENTRIGHT

Article42.Thedurationofpatentrightforinventionsshallbetwentyyears,thedurationofpatentrightforutilitymodelsandpatentrightfordesignsshallbetenyears,countedfromthedateoffiling.

Article43.Thepatenteeshallpayanannualfeebeginningwiththeyearinwhichthepatentrightwasgranted.

Article44.Inanyofthefollowingcases,thepatentrightshallceasebeforetheexpirationofitsduration:

(1)whereanannualfeeisnotpaidasprescribed;

(2)wherethepatenteeabandonshisoritspatentrightbyawrittendeclaration.

AnycessationofthepatentrightshallberegisteredandannouncedbythePatentAdministrationDepartmentUndertheStateCouncil.

Article45.Where,startingfromthedateoftheannouncementofthegrantofthepatentrightbythepatentadministrationdepartmentundertheStateCouncil,anyentityorindividualconsidersthatthegrantofthesaidpatentrightisnotinconformitywiththerelevantprovisionsofthisLaw,itorhemayrequestthePatentReexaminationBoardtodeclarethepatentrightinvalid.

Article46.ThePatentReexaminationBoardshallexaminetherequestforinvalidationofthepatentrightpromptly,makeadecisiononitandnotifythepersonwhomadetherequestandthepatentee.ThedecisiondeclaringthepatentrightinvalidshallberegisteredandannouncedbythepatentadministrationdepartmentundertheStateCouncil.

WherethepatenteeorthepersonwhomadetherequestforinvalidationisnotsatisfiedwiththedecisionofthePatentReexaminationBoarddeclaringthepatentrightinvalidorupholdingthepatentright,suchpartymay,withinthreemonthsfromreceiptofthenotificationofthedecision,institutelegalproceedingsinthepeople’scourt.Thepeople’scourtshallnotifythepersonthatistheopponentpartyofthatpartyintheinvalidationproceduretoappearasathirdpartyinthelegalproceedings.

Article47.Anypatentrightwhichhasbeendeclaredinvalidshallbedeemedtobenon-existentfromthebeginning.

Thedecisiondeclaringthepatentrightinvalidshallhavenoretroactiveeffectonanyjudgementorrulingofpatentinfringementwhichhasbeenpronouncedandenforcedbythepeople’scourt,onanydecisionconcerningthehandlingofadisputeoverpatentinfringementwhichhasbeencompliedwithorcompulsorilyexecuted,oronanycontractofpatentlicenseorofassignmentofpatentrightwhichhasbeenperformedpriortothedeclarationofthepatentrightinvalid;however,thedamagecausedtootherpersonsinbadfaithonthepartofthepatenteeshallbecompensated.

If,pursuanttotheprovisionsoftheprecedingparagraph,thepatenteeortheassignorofthepatentrightmakesnorepaymenttothelicenseeortheassigneeofthepatentrightofthefeefortheexploitationofthepatentorofthepricefortheassignmentofthepatentright,whichisobviouslycontrarytotheprincipleofequity,thepatenteeortheassignorofthepatentrightshallrepaythewholeorpartofthefeefortheexploitationofthepatentorofthepricefortheassignmentofthepatentrighttothelicenseeortheassigneeofthepatentright.

CHAPTERVICOMPULSORYLICENSEFOREXPLOITATIONOFTHEPATENT

Article48.Whereanyentitywhichisqualifiedtoexploittheinventionorutilitymodelhasmaderequestsforauthorizationfromthepatenteeofaninventionorutilitymodeltoexploititsorhispatentonreasonabletermsandconditionsandsucheffortshavenotbeensuccessfulwithinareasonableperiodoftime,thePatentAdministrationDepartmentUndertheStateCouncilmay,upontherequestofthatentity,grantacompulsorylicensetoexploitthepatentforinventionorutilitymodel.

Article49.Whereanationalemergencyoranyextraordinarystateofaffairsoccurs,orwherethepublicinterestsorequires,thePatentAdministrationDepartmentUndertheStateCouncilmaygrantacompulsorylicensetoexploitthepatentforinventionorutilitymodel.

Article50.Wheretheinventionorutilitymodelforwhichthepatentrighthasbeengrantedinvolvesimportanttechnicaladvanceofconsiderableeconomicsignificanceinrelationtoanotherinventionorutilitymodelforwhichapatentrighthasbeengrantedearlierandtheexploitationofthelaterinventionorutilitymodeldependsontheexploitationoftheearlierinventionorutilitymodel,thepatentadministrationdepartmentundertheStateCouncilmay,upontherequestofthelaterpatentee,grantacompulsorylicensetoexploittheearlierinventionorutilitymodel.

Where,accordingtotheprecedingparagraph,acompulsorylicenseisgranted,thePatentAdministrationDepartmentUndertheStateCouncilmay,upontherequestoftheearlierpatentee,alsograntacompulsorylicensetoexploitthelaterinventionorutilitymodel.

Article51.Theentityorindividualrequesting,inaccordancewiththeprovisionsofthisLaw,acompulsorylicenseforexploitationshallfurnishproofthatitorhehasnotbeenabletoconcludewiththepatenteealicensecontractforexploitationonreasonabletermsandconditions.

Article52.ThedecisionmadebythepatentadministrationdepartmentundertheStateCouncilgrantingacompulsorylicenseforexploitationshallbenotifiedpromptlytothepatenteeconcerned,andshallberegisteredandannounced.

Inthedecisiongrantingthecompulsorylicenseforexploitation,thescopeanddurationoftheexploitationshallbespecifiedonthebasisofthereasonsjustifyingthegrant.Ifandwhenthecircumstanceswhichledtosuchcompulsorylicenseceasetoexistandareunlikelytorecur,thepatentadministrationdepartmentundertheStateCouncilmay,afterreviewupontherequestofthepatentee,terminatethecompulsorylicense.

Article53.Anyentityorindividualthatisgrantedacompulsorylicenseforexploitationshallnothaveanexclusiverighttoexploitandshallnothavetherighttoauthorizeexploitationbyanyothers.

Article54.Theentityorindividualthatisgrantedacompulsorylicenseforexploitationshallpaytothepatenteeareasonableexploitationfee,theamountofwhichshallbefixedbybothpartiesinconsultations.Wherethepartiesfailtoreachanagreement,thePatentAdministrationDepartmentUndertheStateCouncilshalladjudicate.

Article55.WherethepatenteeisnotsatisfiedwiththedecisionofthepatentadministrationdepartmentundertheStateCouncilgrantingacompulsorylicenseforexploitation,orwherethepatenteeortheentityorindividualthatisgrantedthecompulsorylicenseforexploitationisnotsatisfiedwiththerulingmadebythepatentadministrationdepartmentundertheStateCouncilregardingthefeepayableforexploitation,itorhemay,withinthreemonthsfromthereceiptofthedateofnotification,institutelegalproceedingsinthepeople’scourt.

CHAPTERVIIPROTECTIONOFPATENTRIGHT

Article56.Theextentofprotectionofthepatentrightforinventionorutilitymodelshallbedeterminedbythetermsoftheclaims.Thedescriptionandtheappendeddrawingsmaybeusedtointerprettheclaims.

Theextentofprotectionofthepatentrightfordesignshallbedeterminedbytheproductincorporatingthepatenteddesignasshowninthedrawingsorphotographs.

Whereanyinfringementdisputerelatestoapatentforinventionforaprocessforthemanufactureofanewproduct,anyentityorindividualmanufacturingtheidenticalproductshallfurnishprooftoshowthattheprocessusedinthemanufactureofitsorhisproductisdifferentfromthepatentedprocess.Wheretheinfringementrelatestoapatentforutilitymodel,thepeople’scourtortheadministrativeauthorityforpatentaffairsmayaskthepatenteetofurnishasearchreportmadebythepatentadministrationdepartmentundertheStateCouncil.

Article58.Whereanypersonpassesoffthepatentofanotherpersonashisown,heshall,inadditiontobearinghiscivilliabilityaccordingtolaw,beorderedbytheadministrativeauthorityforpatentaffairstoamendhisact,andtheordershallbeannounced.Hisillegalearningsshallbeconfiscatedand,inaddition,hemaybeimposedafineofnotmorethanthreetimeshisillegalearningsand,ifthereisnoillegalearnings,afineofnotmorethanRMB50,000yuan.Wheretheinfringementconstitutesacrime,heshallbeprosecutedforhiscriminalliability.

Article59.Whereanypersonpassesanynon-patentedproductoffaspatentedproductorpassesanynon-patentedprocessoffaspatentedprocess,heshallbeorderedbytheadministrativeauthorityforpatentaffairstoamendhisact,andtheordershallbeannounced,andhemaybeimposedafineofnomorethanRMB50,000yuan.

Article60.Theamountofcompensationforthedamagecausedbytheinfringementofthepatentrightshallbeassessedonthebasisofthelossessufferedbythepatenteeortheprofitswhichtheinfringerhasearnedthroughtheinfringement.Ifitisdifficulttodeterminethelosseswhichthepatenteehassufferedortheprofitswhichtheinfringerhasearned,theamountmaybeassessedbyreferencetotheappropriatemultipleoftheamountoftheexploitationfeeofthatpatentundercontractuallicense.

Article61.Whereanypatenteeorinterestedpartyhasevidencetoprovethatanotherpersonisinfringingorwillsooninfringeitsorhispatentrightandthatifsuchinfringingactisnotcheckedorpreventedfromoccurringintime,itislikelytocauseirreparableharmtoitorhim,itorhemay,beforeanylegalproceedingsareinstituted,requestthepeople’scourttoadoptmeasuresfororderingthesuspensionofrelevantactsandthepreservationofproperty.

Thepeople’scourt,whendealingwiththerequestmentionedintheprecedingparagraph,shallapplytheprovisionsofArticle93throughArticle96andofArticle99oftheCivilProcedureLawofthePeople’sRepublicofChina.

Article62.Prescriptionforinstitutinglegalproceedingsconcerningtheinfringementofpatentrightistwoyearscountedfromthedateonwhichthepatenteeoranyinterestedpartyobtainsorshouldhaveobtainedknowledgeoftheinfringingact.

Wherenoappropriatefeeforexploitationoftheinvention,subjectofanapplicationforpatentforinvention,ispaidduringtheperiodfromthepublicationoftheapplicationtothegrantofpatentright,prescriptionforinstitutinglegalproceedingsbythepatenteetodemandthesaidfeeistwoyearscountedfromthedateonwhichthepatenteeobtainsorshouldhaveobtainedknowledgeoftheexploitationofhisinventionbyanotherperson.However,wherethepatenteehasalreadyobtainedorshouldhaveobtainedknowledgebeforethedateofthegrantofthepatentright,theprescriptionshallbecountedfromthedateofthegrant.

Article63.Noneofthefollowingshallbedeemedaninfringementofthepatentright:

(l)Where,afterthesaleofapatentedproductthatwasmadeorimportedbythepatenteeorwiththeauthorizationofthepatentee,orofaproductthatwasdirectlyobtainedbyusingthepatentedprocess,anyotherpersonuses,offerstosellorsellsthatproduct;

(2)Where,beforethedateoffilingoftheapplicationforpatent,anypersonwhohasalreadymadetheidenticalproduct,usedtheidenticalprocess,ormadenecessarypreparationsforitsmakingorusing,continuestomakeoruseitwithintheoriginalscopeonly;

(3)Whereanyforeignmeansoftransportwhichtemporarilypassesthroughtheterritory,territorialwatersorterritorialairspaceofChinausesthepatentconcerned,inaccordancewithanyagreementconcludedbetweenthecountrytowhichtheforeignmeansoftransportbelongsandChina,orinaccordancewithanyinternationaltreatytowhichbothcountriesareparty,oronthebasisoftheprincipleofreciprocity,foritsownneeds,initsdevicesandinstallations;

(4)Whereanypersonusesthepatentconcernedsolelyforthepurposesofscientificresearchandexperimentation.

Anypersonwho,forproductionandbusinesspurposes,usesorsellsapatentedproductoraproductthatwasdirectlyobtainedbyusingapatentedprocess,withoutknowingthatitwasmadeandsoldwithouttheauthorizationofthepatentee,shallnotbeliabletocompensateforthedamageofthepatenteeifhecanprovethatheobtainstheproductfromalegitimatesource.

Article64.Whereanyperson,inviolationoftheprovisionsofArticle20ofthisLaw,filesinaforeigncountryanapplicationforapatentthatdivulgesanimportantsecretoftheState,heshallbesubjecttodisciplinarysanctionbytheentitytowhichhebelongsorbythecompetentauthorityconcernedatthehigherlevel.Whereacrimeisestablished,thepersonconcernedshallbeprosecutedforhiscriminalliabilityaccordingtothelaw.

Article65.Whereanypersonusurpstherightofaninventororcreatortoapplyforapatentforanon-serviceinvention-creation,orusurpsanyotherrightorinterestofaninventororcreator,prescribedbythisLaw,heshallbesubjecttodisciplinarysanctionbytheentitytowhichhebelongsorbythecompetentauthorityatthehigherlevel.Article66.Theadministrativeauthorityforpatentaffairsmaynottakepartinrecommendinganypatentedproductforsaletothepublicoranysuchcommercialactivities.

Wheretheadministrativeauthorityforpatentaffairsviolatestheprovisionsoftheprecedingparagraph,itshallbeorderedbytheauthorityatthenexthigherlevelorthesupervisoryauthoritytocorrectitsmistakesandeliminatethebadeffects.Theillegalearnings,ifany,shallbeconfiscated.Wherethecircumstancesareserious,thepersonswhoaredirectlyinchargeandtheotherpersonswhoaredirectlyresponsibleshallbegivendisciplinarysanctioninaccordancewithlaw.

Article67.WhereanyStatefunctionaryworkingforpatentadministrationoranyotherStatefunctionaryconcernedneglectshisduty,abuseshispower,orengagesinmalpracticeforpersonalgain,whichconstitutesacrime,shallbeprosecutedforhiscriminalliabilityinaccordancewithlaw.Ifthecaseisnotseriousenoughtoconstituteacrime,heshallbegivendisciplinarysanctioninaccordancewithlaw.

CHAPTERVIIISUPPLEMENTARYPROVISIONS

Article68.Anyapplicationforapatentfiledwith,andanyotherproceedingsbefore,thePatentAdministrationDepartmentUndertheStateCouncilshallbesubjecttothepaymentofafeeasprescribed.

Article69.ThisLawshallenterintoforceonAprill,1985.

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