A new revision on the Patent Law of People’s Republic of China is been made recently by the Standing Committee of the National People's Congress. This revision would be effective on June 1st, 2021. There are three main parts of revision which may catch attentions, details as follows:
First is enhancing the protection for the legal rights of the patentees, including increasing compensation for infringing patent rights, setting one to five times of compensation for intentionally infringements, raising the top amount of statutory compensation to 5 million. Complete the system for burden of proof, and the administrative protections of patents such as property preservation, ordering certain acts or prohibiting certain acts. Increase the principle of good faith when applying for patent and exercising patent rights, and increase the compensation of patent time limit due to unreasonable delay in authorization process and the relevant clauses of early settlement procedure of drug patent disputes. Adjust the limitation of action of infringement of patents into three years.
Second is promoting the implementation and application of patents, including on-duty invention and open license patent. Profitable incentives are encouraged for the units to share the profits with the inventors or designers reasonably through shares, stocks and others. There are new articles for open license patents, the patentee voluntarily declares in writing to the Administrative Department for Patents under the State Council that he is willing to license any unit or individual to implement his patent, any unit or individual has the intention to implement an open license patent, it shall notify the patentee in writing, and after paying the license fee in accordance with the method and standard of payment of the announced license fee, it shall obtain the license to implement the patent.
Third is completing the authorizing system including relevant system of design patent protection, the period of design patent right is extended to 15 years. And increase the application of novelty grace period, and the system of patent right evaluation report is improved.
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Mr. Mike Chang
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