The newest draft revisions to China’s patent law is a reminder of the importance of understanding the legal nuances when entering a new market.
China’s patent law has provisions outlining the ownership of employee inventions and requirements for properly compensating those inventors when the invention is deemed to belong to the employer. While several European countries have sections in their patent laws dealing with this sort of situation, the U.S. has largely treated this relationship as a matter of contract for employers and employees to negotiate on their own.
Not surprisingly then, in comments to China’s State Council regarding the proposed changes to the patent law, several groups representing international companies expressed concerns about these provisions.
Some said that the draft appeared to narrow the definition of what constitutes a service invention that would belong to the employer, making it more cumbersome for companies to ensure that they will own the patents that result from their investments. Others suggested that the requirement that employees be “reasonably” compensated is vague, and may require employers to meticulously calculate the value of all their patents in order to comply with the law. And several stressed the importance of allowing market forces to dictate the ownership and compensation given for employee inventions, implying that these provisions restrict this freedom of contract.
U.S. companies are used to handling these issues via contracts or agreements with their employees, but as international markets grow in importance, they likely will encounter these types of new challenges with increasing frequency.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)