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ARTICLE · 04 SEPTEMBER 2022

Market Intelligence Thought Leadership Award Winner

Inventor Compensation In China

It is my honor to have my article on this published by the October 202 issue of UK CIPA Journal.

ChinaIntellectual Property

If you are concerned with the issue of employee inventor compensation, as mentioned in my article, let me congratulate you, because you are having a happy problem – you do not have to be concerned if you are not making a huge profit from your invention.

Comparing to other jurisdictions, China is very generous to the inventors, reflected by the legal requirements on compensation after the patent is commercially exploited within the term of the patent as below:

  • for invention patent or utility model, not less than 2% of the profit;
  • for design patent, not less than 0.2% of the profit; and
  • not less than 10% of the license fee.

The good news is, compensation is to be calculated based on contribution of the invention to the profit (much like assessing patent infringement compensation), and the number of inventors

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