Inventor remuneration update in China

Rouse
Jin Ling
[email protected]



In 2009, China passed The Implementation Rules of the Chinese Patent Law (the Rules), which came into effect on February 1 2010. The law has led to significant changes in regulatory requirements in relation to inventor remuneration for employee inventions.

Under the previous Patent Law and its Implementation Rules, the statutory remuneration scheme applied only to state-owned companies and institutions. There were no mandatory inventor remuneration rules for other types of entities registered in China. Under the revised Patent Law and Rules, all business entities obtaining a granted patent in respect of an invention made by an employee in the course of his employment – or using the employer's resources, materials or equipment – are now legally obliged to engage in the development and management of a remuneration plan for the employee-inventor.