WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO  IP/N/1/CHN/P/2 
21 December 2010 
 (10-6832) 
Council for Trade-Related Aspects 
of Intellectual Property Rights Original:   English/ 
 anglais/  inglés 
 
  
MAIN DEDICATED INTELLECTUAL PR OPERTY LAWS AND REGULATIONS 
NOTIFIED UNDER ARTICLE 63.2 OF THE AGREEMENT 
 
CHINA 
 
 The present document reproduces the text
1 of the revised Patent Law, as notified by China on 
2 November 2010 under Article 63.2 of th e Agreement (see document IP/N/1/CHN/3). 
 
 Conseil des aspects des droits de propriété intellectuelle qui touchent au commerce  
PRINCIPALES LOIS ET RÉGLEMENTATIONS CONSACRÉES À 
LA PROPRIÉTÉ INTELLECTUELLE NOTIFIÉES AU TITRE 
DE L'ARTICLE 63:2 DE L'ACCORD 
 
CHINE 
 
 Le présent document contient le texte
1 de la Loi révisée sur les brevets, notifiée par la Chine 
le 2 novembre 2010 au titre de l'article 63:2 de l' Accord (voir le document IP/N/1/CHN/3).   
 
 
Consejo de los Aspectos de los Derechos de Propiedad Intelectual relacionados con el Comercio 
 
PRINCIPALES LEYES Y REGLAMENTOS DEDICADOS A LA 
PROPIEDAD INTELECTUAL NOTIFICADOS EN VIRTUD 
DEL PÁRRAFO 2 DEL ARTÍCULO 63 DEL ACUERDO 
 
CHINA 
 
  En el presente documento se reproduce el texto
1 de la Ley de Patentes revisada notificado por 
China el 2 de noviembre de 2010 en virtud de lo disp uesto en el párrafo 2 del artículo 63 del Acuerdo 
(véase el documento IP/N/1/CHN/3). 
 
                                                      
 1 In English only.  The text in the original language will be available for consultation by interested 
Delegations at the WTO Secretariat./En anglais seulement.   Les délégations intéressées pourront consulter le 
texte, dans sa langue d'origine, au Secrétariat de l' OMC./En inglés solamente.  Las delegaciones interesadas 
podrán consultar en la Secretaría de la OMC el texto en su idioma original. IP/N/1/CHN/P/2 
Page 2  
 
  Order of the President of the People's Republic of China 
No.8 
 
 The Decision of the Standing Committee of the National People's Congress on Amending the 
Patent Law of the People's Republic of China, a dopted at the 6th Meeting of the Standing Committee 
of the Eleventh National People's Congress on Decembe r 27, 2008, is hereby promulgated and shall 
go into effect as of October 1, 2009.      Hu Jintao 
  President of the People's Republic of China 
 
 December 27, 2008  IP/N/1/CHN/P/2 
Page 3 
 
 
  Decision of the Standing Committee of the National People's Congress 
on Amending the Patent Law of the People's Republic of China 
 
(Adopted at the 6th Meeting of the Standing Comm ittee of the Eleventh National People's Congress 
on December 27, 2008) 
 
 At its 6th Meeting, the Standing Committee of the Eleventh National People's Congress decided to make the following amendments to the Patent Law of the People's Republic of China: 
1. Article 1 is revised to read: "This Law is enacted for the purpose of protecting the lawful 
rights and interests of patentees, encouraging in vention-creation, promo ting the application of 
invention-creation, enhancing innovation capability, promoting the advancement of science and 
technology and the economic and social development." 
2. Three paragraphs are added in Article 2 as th e second, third and forth paragraph, which read:  
 "Inventions mean new technical solutions  proposed for a product, a process or the 
improvement thereof. 
 "Utility models mean new technical solutions proposed for the shape and structure of a 
product, or the combination thereof, which are fit for practical use. 
 "Designs mean, with respect to a product, new designs of the shape, pattern, or the 
combination thereof, or the combination of the co lor with shape and pattern, which are rich in an 
aesthetic appeal and are fit for industrial application." 
3.  Article 5 is revised to read: "Patent rights shall not be granted for invention-creations that 
violate the law or social ethics, or harm public interests. 
"Patent rights shall not be granted for inventi ons that are accomplished by relying on genetic 
resources which are obtained or used in violation of the provisions of laws and administrative 
regulations." 
4.  One paragraph is added in Article 9 as the fi rst paragraph, which reads: "Only one patent can 
be granted for the same invention. However, wh ere the same applicant applies for a utility model 
patent and an invention patent with  regard to the same invention on the same day, if the utility model 
patent acquired earlier is not terminated yet and th e applicant declares his waiver of the same, the 
invention patent may be granted." 
5.  The second paragraph of Article 10 is revised to read: "If a Chinese unit or individual intends 
to transfer the right to apply for a patent or pate nt rights to a foreigner, foreign enterprise or other 
foreign organization, it or he shall perform the procedures in accordance with the provisions of 
relevant laws and admi nistrative regulations." 
6.  The second paragraph of Article 11 is revised to  read: "After a design patent right is granted, 
no unit or individual may exploit the patent without permission of the patentee, i.e., it or he may not, 
for production or business purposes, manufacture, offer to sell, sell or import the design patent products." 
7.  Article 12 is revised to read: "Any unit or in dividual that intends to exploit the patent of 
another unit or individual shall c onclude a contract with the pate ntee for permitted exploitation and 
pay the royalties. The permittee shall not have the ri ght to allow any unit or individual not specified in 
the contract to exploit the said patent." IP/N/1/CHN/P/2 
Page 4  
 
  8.  The second paragraph of  Article 14 is deleted. 
9.  One article is added as Article 15, which reads: "If there are agreements regarding the 
exercise of rights by the co-owners of the right to  apply for the patent or of the patent right, the 
agreements shall prevail. In the absence of such agreements, the co -owners may separately exploit the 
patent or may, in an ordinary manner, permit ot hers to exploit the said patent. where others are 
permitted to exploit the patent, the royalties rece ived shall be distributed among the co-owners. 
 "Except under the circumstances specified in th e preceding paragraph, exercise of the co-
owned right to apply for patent or of the co-owned patent right shall be subject to the consent of all 
the co-owners." 
10.  Article 15 and 17 are merged into one artic le as Article 17, which reads: "An inventor or 
designer shall have the right to state in the patent  documents that he is the inventor or designer. 
 "The patentee shall have the right to have hi s patent mark displayed on the patented products 
or the package of such products." 
11.  The first paragraph of Article 19 is revised to read: "If a foreigner, foreign enterprise, or other 
foreign organization without a regular residence or bus iness site in China intends to apply for a patent 
or handle other patent-related matters in China, he  or it shall entrust a legally established patent 
agency with the application and such matters." 
 The second paragraph is revised to read: "If a Chinese unit or individual intends to apply for a 
patent or handle other patent-relate d matters in China, it or he may entrust a legally established patent 
agency with the application and such matters." 
12.  The first paragraph of Article 20 is revised to read: "Any unit or individual that intends to 
apply for patent in a foreign country for an inve ntion or utility model accomplished in China shall 
submit the matter to the patent administration depa rtment under the State Council for confidentiality 
examination. Such examination shall be conducted in conformity with the procedures, time limit, etc. 
prescribed by the State Council." 
 One paragraph is added as the fourth paragraph, which reads: "With regard to an invention or 
utility model for which an application is filed for a patent in a foreign country in violation of the 
provisions of the first paragraph of this Article, if an  application is also filed for the patent in China, 
patent right shall not be granted." 
13.  One paragraph is added into Article 21 as the second paragraph, which reads: "The patent 
administration department under the State Council shall release patent-related information in a 
complete, accurate and timely manner, and p ublish patent gazettes on a regular basis." 
14.  The second paragraph of Article 22 is revised to read: "Novelty means that the invention or 
utility model concerned is not an existing technology ; no patent application is filed by any unit or 
individual for any identical invention or utility mode l with the patent administration department under 
the State Council before the date of application fo r patent right, and no identical invention or utility 
model is recorded in the patent application doc uments or the patent documentations which are 
published or announced after the date of application." 
 The third paragraph is revised to read: "Cr eativity means that, compared with the existing 
technologies, the invention possesses prominent s ubstantive features and indicates remarkable 
advancements, and the utility model possesses subs tantive features and indicates advancements."  IP/N/1/CHN/P/2 
 Page 5 
 
 
   One paragraph is added as the fifth paragraph,  which reads: "For the purposes of this Law, 
existing technologies mean the technologies known to th e public both domestically and abroad before 
the date of application." 
15.  Article 23 is revised to read: "A design for wh ich the patent right is granted is not an existing 
design, and no application is filed by any unit or individual for any identical design with the patent 
administration department under the State Council before  the date of application for patent right and 
no identical design is recorded in the patent documen tations announced after the date of application. 
 "Designs for which the patent right is to be gr anted shall be ones which are distinctly different 
from the existing designs or the combinations of the features of existing designs. 
 "Designs for which a patent right is granted sh all be ones which are not in conflict with the 
lawful rights acquired by others pr ior to the date of application. 
 "For the purposes of this Law, existing desi gns mean designs that are known to the public 
both domestically and abroad before the date of application." 
16.  One subparagraph is added into the first pa ragraph of Article 25 as Subparagraph (6), which 
reads: "designs that are mainly used for marking th e pattern, color or the combination of the two of 
prints." 
17.  The second paragraph of Article 26 is revi sed to read: "In the written request shall be 
specified the name of the invention or utility model, the name of the inventor or designer, the name or 
title and the address of the applicant and other related matters." 
 The fourth paragraph is revised to read: "The written claim shall, based on the written 
description, contain a clear and concise definiti on of the proposed scope of patent protection." 
 One paragraph is added as the fifth paragraph,  which reads: "With regard to an invention-
creation accomplished by relying on genetic resources, the applicant shall, in the patent application 
documents, indicate the direct and original source of  the genetic resources. If the applicant cannot 
indicate the original source, he shall state the reasons." 
18.  Article 27 is revised to read: "When a pers on intends to apply for a design patent, he shall 
submit a written request, drawings or pictures of the design, a brief description of the design, and 
other relevant documents. 
 "In the relevant drawings or pictures submitte d by the applicant shall clearly be shown the 
design of the products for which patent protection is requested." 
19.  The second paragraph of Article 31 is revised  to read: "An application for a design patent 
shall be limited to one design. Tw o or more similar designs of one  and the same product or two or 
more designs of products of the same kind that are sold or used in sets may be handled with one 
application." 
20.  The second paragraph of Article 47 is revised  to read: "The decision on declaring a patent 
right invalid shall have no retroactive effect on any written judgment or wr itten mediation on patent 
infringement that has been made and enforced by the people's court, or on any decision concerning the 
handling of a dispute over the patent infringement th at has been performed or compulsively executed, 
or on any contract for permitted exploitation of the pate nt or for transfer of patent rights that has been 
performed--prior to the invalidation declaration of the patent right. However, compensation shall be 
made for the losses caused to another person mala fides by the patentee." IP/N/1/CHN/P/2 
Page 6  
 
   The third paragraph is revised to read: "W here the patent infringement compensation, 
royalties, and patent right transfer fees are not re funded pursuant to the provisions of the preceding 
paragraph, which constitutes a blatan t violation of the principle of fairness, refund shall be made fully 
or partly." 
21.  Article 48 is revised to read: "Under a ny of the following circumstances, the patent 
administration department under the State Council may, upon application made by any unit or 
individual that possesses the conditions for exploitatio n, grant a compulsory license for exploitation of 
an invention patent or utility model patent: 
 "(1)  When it has been three years since the da te the patent right is granted and four years 
since the date the patent application is submitted, the patentee, without leg itimate reasons, fails to 
have the patent exploited or fully exploited; or 
 "(2)  The patentee's exercise of the patent right is in accordance with law, confirmed as 
monopoly and its negative impact on competition needs to be eliminated or reduced."  
22.  One article is added as Article 50, which read s: "For the benefit of public health, the patent 
administration department under the State Council may grant a compulsory license for manufacture of 
the drug, for which a patent right has been obtained,  and for its export to the countries or regions that 
conform to the provisions of the relevant intern ational treaties to which the People's Republic of 
China has acceded." 
23.  One article is added as Article 52, which reads: "If an invention involved in a compulsory 
license is a semi-conductor technology, the exploita tion thereof shall be limited to the purpose of 
public interests and to the circumstances as provided for in Subparagraph (2) of Article 48 of this 
Law." 
24.  One article is added as Article 53, which read s: "Except for the compulsory license granted in 
accordance with the provisions of Subparagraph (2 ) of Article 48 or Article 50 of this Law, 
compulsory license shall mainly be exercised  for the supply to the domestic market." 
25.  Article 51 is revised as Article 54, which r eads: "A unit or individual that applies for a 
compulsory license in accordance with  the provisions of Subparagraph (1) of Article 48 or Article 51 
of this Law shall provide evidence to show that it or he has, under reasonable terms, requests the 
patentee's permission for exploitation of the pate nt, but fails to obtain such permission within a 
reasonable period of time." 
26.  Article 54 is revised as Article 57, which r eads: "The unit or individual that is granted a 
compulsory license for exploitation shall pay reasona ble royalties to the patentee, or handle the issue 
of royalties in accordance with the provisions of the relevant international treaties to which the 
People's Republic of China has acceded. The amount of  royalties to be paid shall be subject to 
consultation between the two parties. In the event of failure to reach an agreement between the two 
parties, the patent administration department  under the State Council shall make a ruling." 
27.  Article 56 is revised as Article 59, which read s: "For the patent right of an invention or a 
utility model, the scope of protecti on shall be confined to what is claimed, and the written description 
and the pictures attached may be u sed to explain what is claimed. 
 "For the design patent right, the scope of protection shall be confined to the design of the 
product as shown in the drawings or pictures, and the brief description may be used to explain the said 
design as shown in the drawings or pictures."  IP/N/1/CHN/P/2 
 Page 7 
 
 
  28.  The second paragraph of Article 57 is revised  as Article 61, which reads: "If a dispute over 
patent infringement involves an invention patent for the method of manufacturing a new product, the 
unit or individual manufacturing the same produc t shall provide evidence to show that the 
manufacturing method of their own product is different from the patented method. 
 "If a dispute over patent infringement involves a utility model patent or a design patent, the 
people's court or the administration department for patent-related work may re quire the patentee or the 
interested parties to present a patent right assessm ent report prepared by the patent administration 
department under the State Council through searchi ng, analyzing, and assessing the relevant utility 
model or design, which shall serve as evidence for trying or handling the patent infringement 
dispute." 
29.  One article is added as Article 62, which r eads: "In a patent infringement dispute, if the 
accused infringer has evidence to pr ove that the technology or design exploited is an existing 
technology or design, the exploitation shall not constitute a patent right infringement." 
30.  Article 58 and 59 are merged into one ar ticle as Article 63, which reads: "A person who 
counterfeits the patent of anothe r person shall, in addition to bearing civil liabilities in accordance 
with law, be ordered by the administration departme nt for patent-related work to put it right, and the 
department shall make the matter known to the public , confiscate his unlawful gains and, in addition, 
impose on him a fine of not more than four times the unlawful gain; if there are no unlawful gains, a 
fine of not more than RMB 200,000 may be imposed on him; and if a crime is constituted, criminal 
responsibility shall be pursued in accordance with law." 
31.  One article is added as Article 64, which reads: "When the administration department for 
patent-related work investigates and handles the su spected counterfeiting of a patent, it may, based on 
evidence obtained, inquire the parties concerned, and investigate the circumstances related to the 
suspected illegal act; it may conduct on-the-spot in spection of the places where the suspected illegal 
act is committed; consult and duplicate the releva nt contracts, invoices, account books and other 
related materials; and check the products related to the suspected illegal act and seal or detain the 
products that are proved to be pr oduced by the counterfeited patent. 
 "When the administration department for patent -related work performs its duties as prescribed 
in the preceding paragraph, the parties concerned shall provide assistance and cooperation, instead of 
refusing to do so or creating obstacles." 
32.  Article 66 is revised  as Article 65, which reads: "The am ount of compensation for patent right 
infringement shall be determined according to the patentee's actual losses caused by the infringement. 
If it is hard to determine the actual losses, the am ount of compensation may be determined according 
to the benefits acquired by the infringer through th e infringement. If it is hard to determine the losses 
of the patentee or the benefits acquired by th e infringer, the amount of compensation may be 
determined according to the reasonably multiplied am ount of the royalties of that patent. The amount 
of compensation shall include the reasonable expen ses paid by the patentee for putting an end to the 
infringement. 
 "If the losses of the patentee, benefits of the infri nger, or royalties of the patent are all hard to 
determine, the people's court may, on the basis of the factors such as the type of patent right, nature of 
the infringement, and seriousness of the case, determine the amount of compensation within the range from 10,000 yuan to 1,000,000 yuan." 
33.  Article 61 is revised as Article 66, which r eads: "If the patentee or interested party has 
evidence to prove that another person is committing or is about to commit a patent infringement, 
which, unless being checked in time, may cause irrepara ble harm to his lawful rights and interests, he IP/N/1/CHN/P/2 
Page 8  
 
  may, before taking legal action, file  an application to request that th e people's court order to have such 
act ceased. 
 "When filing such an application, the applicant shall provide guarantee. In the event of failure 
to provide guarantee, the application shall be rejected. 
 "The people's court shall make a ruling within  48 hours from the time of its acceptance of the 
application. If an extension is needed under sp ecial circumstances, a 48-hour extension may be 
allowed. If a ruling is made to order to have the re levant act ceased, it shall be enforced immediately. 
The party that is dissatisfied with the ruling may f ile once for review, and the enforcement shall not be 
suspended during the period of review. 
 "If the applicant does not take legal action w ithin 15 days from the date the people's court 
takes measures to have the relevant act ceased , the people's court shall lift such measures. 
 "If the application is wrong, the applicant sh all compensate the losses suffered by respondent 
due to ceasing of the relevant act." 
34.  One article is added as Article 67, whic h reads: "To check a patent infringement, when 
evidence might be lost or might be hard to acquire  thereafter, the patentee or interested party may, 
before taking legal action, file an application with the people's court for evidence preservation." 
 "If the people's court takes preservation measu res, it may order the applicant to provide 
guarantee. If the applicant fails to provide gua rantee, the application shall be rejected." 
 "The people's court shall make a ruling within  48 hours from the time of its acceptance of the 
application. If it rules to take preservation measur es, such a ruling shall be enforced immediately." 
 "If the applicant does not take legal action w ithin 15 days from the date the people's court 
takes preservation measures, the people's court shall lift such measures." 
35.  The first paragraph of Article 63 is revised as Article 69, and Subparagraph (1) is revised to 
read: "After a patented product or a product directly  obtained by using the patented method is sold by 
the patentee or sold by any unit or individual with the permission of the patentee, any other person uses, offers to sell, sells or imports that product;" 
 One subparagraph is added as Subparagraph (5), which reads:  "Any person produces, uses, or 
imports patented drugs or  patented medical apparatus and instruments, for the purpose of providing 
information required for administrative examinati on and approval, or produces or any other person 
imports patented drugs or patent ed medical apparatus and instruments especially for that person." 
36.  The second paragraph of Article 63 is revised as Article 70, which reads: "Where any person, 
for the purpose of production and business operation, u ses, offers to sell or sells a patent-infringing 
product without knowing that such product is produced  and sold without permission of the patentee, 
he shall not be liable for compensation provided th at the legitimate source of the product can be 
proved." 
 This Decision shall go into effect as of October 1, 2009.  The Patent Law of the People's Republic of Chin a shall be revised and the order of the articles 
shall be rearranged correspondingly in accordance with this Decision, and the Law shall be 
promulgated anew. IP/N/1/CHN/P/2 
Page 9 
 
 
  Patent Law of the People's Republic of China 
  (Adopted at the 4th Meeting of the Sta nding Committee of the Sixth National People's 
Congress on March 12,1984,  amended for the first time in acco rdance with the Decision of the 
Standing Committee of the Seventh National People' s Congress on Amending the Patent Law of the 
People's Republic of China at its 27th Meeting on September 4,1992, amended for the second time in 
accordance with the Decision of the Standing Comm ittee of the Ninth National People's Congress on 
Amending the Patent Law of the People's Repub lic of China adopted at its 17th Meeting on 
August 25, 2000, and amended for the third time in  accordance with the Decision of the Standing 
Committee of the Eleventh National People's Congress on Amending the Patent Law of the People's 
Republic of China at its 6th Meeting on December 27, 2008) 
  
Contents 
 
Chapter I  General Provisions 
Chapter II  Conditions for Granting Patent Rights Chapter III  Patent Application Chapter IV  Examination and A pproval of Patent Applications 
Chapter V  Duration, Termination and Invalidation of Patent Rights 
Chapter VI  Compulsory License for Exploitation of a Patent  
Chapter VII  Protection of Patent Rights 
Chapter VIII  Supplementary Provisions  
 
Chapter I 
General Provisions 
 
 Article 1   This Law is enacted for the purpose of protecting the lawful rights and interests of 
patentees, encouraging invention-creation, promoting the application of invent ion-creation, enhancing 
innovation capability, promoting the advancement of science and technology and the economic and social development. 
 Article 2   For the purposes of this Law, inve ntion-creations mean i nventions, utility models 
and designs. 
 Inventions mean new technical solutions proposed for a product, a process or the 
improvement thereof. 
 Utility models mean new technical solutions proposed for the shape and structure of a 
product, or the combination thereof, which are fit for practical use. 
Designs mean, with respect to a product, new desi gns of the shape, patte rn, or the combination 
thereof, or the combination of the color with shap e and pattern, which are rich in an aesthetic appeal 
and are fit for industrial application. 
Article 3   The Patent Administration Departme nt under the State Council shall be responsible 
for the administration of patent-related work na tionwide. It shall accept and examine patent 
applications in a uniform way and grant patent rights in accordance with law. 
 The departments in charge of patent-related work of the people's governments of provinces, 
autonomous regions and municipalities directly under the Central Govern ment shall be responsible for 
patent administration within their respective administrative areas. IP/N/1/CHN/P/2 
Page 10  
 
   Article 4   Where an invention-creation for the patent of which an app lication is filed involves 
national security or other major interests of the St ate and confidentiality needs to be maintained, the 
application shall be handled in accordance with  the relevant regulations of the State. 
 Article 5   Patent rights shall not be granted for invention-creations that violate the law or 
social ethics, or harm public interests. 
 Patent rights shall not be granted for inventi ons that are accomplished by relying on genetic 
resources which are obtained or used in violation of the provisions of laws and administrative regulations. 
 Article 6   An invention-creation that is accomplished in the course of performing the duties 
of an employee, or mainly by using the material and technical conditions of an employer shall be 
deemed an employment invention-creation. For an employment invention-creation, the employer has 
the right to apply for a patent. After such application is granted, the employer shall be the patentee. 
 For a non-employment invention-creation, the inventor or designer has the right to apply for a 
patent. After such application is granted, the sai d inventor or designer shall be the patentee. 
 For an invention-creation that is accomplished by using the material and technical conditions 
of an employer, if the employer has concluded a contract with the inventor or designer providing the 
ownership of the right to apply for the patent or th e ownership of the patent right, such provision shall 
prevail. 
Article 7   No unit or individual shall preven t the inventor or designer from filing a patent 
application for a non-employment invention.  
 Article 8   With regard to an invention- creation accomplished by two or more units or 
individuals in collaboration, or an invention-crea tion accomplished by an unit or individual under the 
entrustment of another unit or individual, the right to  apply for a patent shall be vested in the units or 
individuals that have accomplished the invention-creation in collabora tion or in the unit or individual 
that has done so under entrustment, unless it is ot herwise agreed upon. After the application is 
granted, the applying unit(s) or indivi dual(s) shall be deemed the patentee(s). 
 Article 9   Only one patent can be granted fo r the same invention. However, where the same 
applicant applies for a utility model patent and an in vention patent with regard to the same invention 
on the same day, if the utility model patent acquire d earlier is not terminated yet and the applicant 
declares his waiver of the same, the invention patent may be granted. 
 If two or more applicants apply for a patent fo r the same invention separately, the patent right 
shall be granted to the first applicant. 
 Article 10   The right to apply for a patent and patent rights may be transferred.  If a Chinese unit or individual intends to transfer the right to apply for a patent or patent rights 
to a foreigner, foreign enterprise or other foreign or ganization, it or he shall perform the procedures in 
accordance with the provisions of releva nt laws and administrative regulations. 
 For the transfer of the right to apply for a patent or of patent rights, the parties concerned shall 
conclude a written contract and file for registrati on at the patent administration department under the 
State Council, and the latter shall make an announcement thereof. The transfer of the right to apply for 
a patent or of patent rights shall become  effective as of the registration date.  IP/N/1/CHN/P/2 
 Page 11 
 
 
   Article 11   After the patent right is gran ted for an invention or a utility model, unless 
otherwise provided for in this Law, no unit or indivi dual may exploit the patent without permission of 
the patentee, i.e., it or he may not, for production or  business purposes, manufacture, use, offer to sell, 
sell, or import the patented products , use the patented method, or use, offer to sell, sell or import the 
products that are developed directly through the use of the patented method. 
 After a design patent right is granted, no un it or individual may exploit the patent without 
permission of the patentee, i.e., it or he may not, for production or business purposes, manufacture, 
offer to sell, sell or import the design patent products. 
 Article 12   Any unit or individual that inte nds to exploit the patent of another unit or 
individual shall conclude a contract with the pate ntee for permitted exploitation and pay the royalties. 
The permittee shall not have the right to allow any unit or individual not specified in the contract to 
exploit the said patent. 
 Article 13   After the application for an i nvention patent is published, the applicant may 
require the unit or individual that exploits the said patent to pay an appropriate amount of royalties. 
 Article 14   If an invention patent of a Stat e-owned enterprise or institution is of great 
significance to national or public interests, upon appr oval by the State Council, the relevant competent 
department under the State Council or the people's government of the province, autonomous region, 
or municipality directly under the Central Government  may decide to have the patent widely applied 
within an approved scope and allow the designated un its to exploit the patent, and the said units shall 
pay royalties to the patentee in accordance with the regulations of the State. 
 Article 15   If there are agreements regarding the exercise of rights by the co-owners of the 
right to apply for the patent or of the patent right, the agreements shall preva il. In the absence of such 
agreements, the co-owners may separately exploit the patent or may, in an ordinary manner, permit 
others to exploit the said patent. Where others are permitted to exploit the patent, the royalties 
received shall be distributed among the co-owners. 
 Except under the circumstances specified in th e preceding paragraph, exercise of the co-
owned right to apply for patent or of the co-owned patent right shall be subject to the consent of all 
the co-owners. 
 Article 16   The unit that is granted the patent right shall reward the inventor or designer of an 
employment invention-creation. After such patent is exploited, the inventor or designer shall be given 
a reasonable amount of remuneration according to th e scope of application and the economic results. 
 Article 17   An inventor or designer shall have the right to state in the patent documents that 
he is the inventor or designer. 
 The patentee shall have the right to have his patent mark displayed on the patented products 
or the package of such products. 
 Article 18   Where a foreigner, foreign ente rprise or other foreign organization without a 
regular residence or business site in China applies for a patent in China, the application shall be 
handled in accordance with the agreements concluded by the country he or it belongs to and China or 
the international treaties to which both the count ries have acceded or in accordance with this Law on 
the principle of reciprocity. 
 Article 19   If a foreigner, foreign enterprise,  or other foreign organization without a regular 
residence or business site in China intends to apply for a patent or handle other patent-related matters IP/N/1/CHN/P/2 
Page 12  
 
  in China, he or it shall entrust a legally establis hed patent agency with the application and such 
matters. 
 If a Chinese unit or individual intends to appl y for a patent or handle other patent-related 
matters in China, it or he may entrust a legally estab lished patent agency with the application and such 
matters. 
 A patent agency shall abide by laws and administrative regulations and handle patent 
applications or other patent-related matters as entrusted by its principa ls. It shall also be obligated to 
keep confidential the contents of the inventions of its principals, unless the patent applications have 
been published or announced. The specific measures for administration of the patent agencies shall be 
formulated by the State Council. 
 Article 20   Any unit or individual that intends to apply for patent in a foreign country for an 
invention or utility model accomplished in China sha ll submit the matter to the patent administration 
department under the State Council for confidenti ality examination. Such examination shall be 
conducted in conformity with the procedures, time limit, etc. prescribed by the State Council. 
 A Chinese unit or individual may file for intern ational patent applications in accordance with 
the relevant international treaties to which China has acceded. The applicant for such patent shall 
comply with the provisions of the preceding paragraph. 
 The patent administration department under the State Council shall handle international patent 
applications in accordance with the relevant intern ational treaties to which China has acceded and the 
relevant provisions of this Law a nd regulations of the State Council. 
 With regard to an invention or utility model for which an application is filed for a patent in a 
foreign country in violation of the provisions of the fi rst paragraph of this Article, if an application is 
also filed for the patent in China, patent right shall not be granted. 
 Article 21   The patent administration depa rtment under the State Council and its Patent 
Review Board shall, according to the requirements of  objectivity, fairness, accuracy and timeliness, 
handle patent applications and requests in accordance with law. 
 The patent administration department under the State Council shall release patent-related 
information in a complete, accurate and timely manner,  and publish patent gazettes on a regular basis. 
 Before a patent application is published or  announced, the staff members of the patent 
administration department under the State Council a nd the persons concerned shall be obligated to 
keep such application confidential. 
 
Chapter II 
Conditions for Granting Patent Rights 
 
 Article 22   Inventions and utility models for which patent rights are to be granted shall be 
ones which are novel, creative and of practical use. 
 
 Novelty means that the invention or utility m odel concerned is not an existing technology; no 
patent application is filed by any unit or individual for any identical invention or utility model with the patent administration department under the State Council before the date of application for patent 
right, and no identical invention or utility model is r ecorded in the patent application documents or the 
patent documentations which ar e published or announced after the date of application. 
  IP/N/1/CHN/P/2 
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   Creativity means that, compared with th e existing technologies, the invention possesses 
prominent substantive features and indicates re markable advancements, and the utility model 
possesses substantive features and indicates advancements.    Practical use means that the said invention or  utility model can be used for production or be 
utilized, and may produce positive results. 
  For the purposes of this Law, existing technologies mean the technologies known to the public both domestically and abroad before the date of application. 
 
 Article 23   A design for which the patent right  is granted is not an existing design, and no 
application is filed by any unit or individual for any identical design with the patent administration 
department under the State Council before the date of application for patent right and no identical 
design is recorded in the patent documentations  announced after the date of application. 
 
 Designs for which the patent right is to be gr anted shall be ones which are distinctly different 
from the existing designs or the combinations of the features of existing designs.     Designs for which a patent right is granted sh all be ones which are not in conflict with the 
lawful rights acquired by others pr ior to the date of application. 
 
 For the purposes of this Law, existing designs  mean designs that are known to the public both 
domestically and abroad before  the date of application. 
 
 Article 24   Within six months before the da te of application, an invention for which an 
application is filed for a patent does not lose its novelty under any of the following circumstances: 
 
 (1)   It is exhibited for the first time at an international exhibition sponsored or recognized by 
the Chinese Government;  (2)   It is published for the first time at a specified academic or technological conference; and 
 (3)   Its contents are divulged by others without the consent of the applicant. 
 
 Article 25   Patent rights shall not be granted for any of the following: 
  (1)   scientific discoveries;  (2)   rules and methods for intellectual activities;  (3)  methods for the diagnosis or treatment of diseases; 
 (4)   animal or plant varieties; 
 (5)   substances obtained by means of nuclear transformation; and  (6)   designs that are mainly used for marki ng the pattern, color or the combination of the two 
of prints.   The patent right may, in accordance with th e provisions of this Law, be granted for the 
production methods of the products specified in Subparagraph (4) of th e preceding paragraph. 
 
Chapter III 
Patent Application 
 
 Article 26   When a person inte nds to apply for an invention or  utility model patent, he shall 
submit the relevant documents, such as a written re quest, a written description and its abstract, and a 
written claim.   IP/N/1/CHN/P/2 
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   In the written request shall be specified the na me of the invention or utility model, the name 
of the inventor or designer, the name or title and the address of the applicant and other related matters. 
  The written description shall contain a clear a nd comprehensive description of the invention 
or utility model so that a technician in the fiel d of the relevant technology can carry it out; when 
necessary, pictures shall be attached  to it. The abstract shall contain a brief introduction to the main 
technical points of the invention or utility model.   The written claim shall, based on the written description, contain a clear and concise definition of the proposed scope of patent protection. 
 
 With regard to an invention-creation acco mplished by relying on genetic resources, the 
applicant shall, in the patent application documen ts, indicate the direct and original source of the 
genetic resources. If the applicant cannot indicate th e original source, he shall state the reasons. 
 
 Article 27   When a person intends to apply for a design patent, he shall submit a written 
request, drawings or pictures of the design, a brie f description of the design, and other relevant 
documents.   In the relevant drawings or pictures submitte d by the applicant shall clearly be shown the 
design of the products for which patent protection is requested. 
 
 Article 28   The date when the patent ad ministration department under the State Council 
receives the patent application documents is the date  of application. If the application documents are 
delivered by post, the date of the postmark is the date of application. 
 
 Article 29   If, within twelve months from the date the applicant first files an application for 
an invention or utility model patent in a foreign country, or within six months from the date the 
applicant first files an application for a design patent  in a foreign country, he files an application for a 
patent in China for the same subject matter, he may enjoy the right of priority in accordance with the 
agreements concluded between the said foreign country and China, or in accordance with the 
international treaties to which both countries have acceded, or on the principle of mutual recognition 
of the right of priority. 
  If, within twelve months form the date the app licant first files an application for an invention 
or utility model patent in China, he files an app lication for a patent with the patent administration 
department under the State Council for the same subj ect matter, the applicant may enjoy the right of 
priority. 
 
 Article 30   An applicant who requests the right  of priority shall submit a written declaration 
at the time of application and submit, within three months, duplicates of the patent application 
documents filed for the first time. Where no writte n declaration is submitted or no duplicates of the 
patent application documents are submitted at the ex piration of the specified time limit, the applicant 
shall be deemed to have waived the right of priority. 
  Article 31   An application for an invention pa tent or utility model patent shall be limited to 
one invention or utility model. Two or more inventi ons or utility models embodied in a single general 
invention concept may be handled with one application. 
 
 An application for a design patent shall be lim ited to one design. Two or more similar designs 
of one and the same product or two or more designs of products of the same kind that are sold or used 
in sets may be handled with one application. 
  IP/N/1/CHN/P/2 
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   Article 32   An applicant may withdraw his pa tent application anytime before being granted 
the patent right. 
 
 Article 33   An applicant may amend his pa tent application documents, provided that the 
amendment to the invention or u tility model patent application documents does not exceed the scope 
specified in the original written descriptions and clai ms, or that the amendment to the design patent 
application documents does not exceed the scope s hown in the original drawings or pictures. 
 
Chapter IV 
Examination and Approval of Patent Applications 
 
 Article 34   Upon receipt of an invention pate nt application, if the patent administration 
department under the State Council, after preliminar y examination, confirms that the application 
meets the requirements of this Law, it shall publis h the application within 18 full months from the 
date of application. And it may do so at an earlier date upon request of the applicant. 
 
 Article 35   Within three years from the date an invention patent app lication is filed, the 
patent administration department under the State Coun cil may, upon request made by the applicant at 
any time, carry out substantive examination of the application. If the applicant, without legitimate 
reasons, fails to request substantive examination at  the expiration of the time limit, such application 
shall be deemed to have been withdrawn. 
 
 The patent administration department under the State Council may carry out substantive 
examination of its own accord, as it deems it necessary.   Article 36   When an applicant for an inven tion patent requests substantive examination, he 
shall submit the reference materials relating to the in vention existing prior to the date of application. 
  If an application has been filed for an inve ntion patent in a foreign country, the patent 
administration department under the State Council ma y require the applicant to submit, within a 
specified time limit, materials concerning an y search made for the purpose of examining the 
application in that country, or materials concer ning the results of any examination made in the 
country. In the event of the applicant's failure to comply at the expiration of the specified time limit 
without legitimate reasons, the applicati on shall be deemed to be withdrawn. 
  Article 37   After the patent administration de partment under the State Council has made the 
substantive examination of the inve ntion patent application, if it finds that the application does not 
conform to the provisions of this Law, it shall notify the applicant of the need to state its opinions 
within a specified time limit or to make amendment to the application. In the event of the applicant's 
failure to comply at the expiration of the sp ecified time limit without legitimate reasons, the 
application shall be deemed to be withdrawn. 
 
 Article 38   After the applicant states his opinions on or makes amendment to the invention 
patent application, if the patent administrati on department under the State Council still believes the 
application does not conform to the provisions of  this Law, it shall reject the application. 
 
 Article 39   If no reason for rejection is discer ned after an invention patent application is 
substantively examined, the patent administrati on department under the State Council shall make a 
decision on granting of the invention patent right, i ssue an invention patent certificate, and meanwhile 
register and announce the same. The invention patent right shall become effective as of the date of 
announcement. 
 IP/N/1/CHN/P/2 
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   Article 40   If no reason for rejection is di scerned after preliminary examination of a utility 
model or design patent application, the patent ad ministration department under the State Council shall 
make a decision on granting of the utility model or  design patent right, issue a corresponding patent 
certificate, and meanwhile register and announce the same. The utility model patent right and the 
design patent right shall become effective as of the date of announcement. 
 
 Article 41   The patent administration depa rtment under the State Council shall establish a 
patent review board. If a patent applicant is di ssatisfied with the decision made by the Patent 
Administration Department under the State Council on re jecting of the application, he may, within 
three months from the date of receipt of the notificatio n, file a request with the patent review board for 
review. After review, the Patent Review Board shal l make a decision and notify the patent applicant 
of the same.   If the patent applicant is dissatisfied with th e review decision made by the patent review 
board, he may take legal action befo re the people's court within three months from the date of receipt 
of the notification. 
 
Chapter V 
Duration, Termination and Invalidation of Patent Rights 
 
 Article 42   The duration of the invention patent  right shall be 20 years and that of the utility 
model patent right and of the design patent right sh all be ten years respectively, all commencing from 
the date of application. 
 
 Article 43   The patentee shall pay annual fees commencing from the year when the patent 
right is granted. 
 
 Article 44   Under any of the following circum stances, the patent right shall be terminated 
before the expiration of the duration:   (1)   failure to pay the annual fee as required; or  (2)   the patentee waiving of the patent right by a written declaration; 
 If a patent right is terminated before the duration expires, the patent administration 
department under the State Council shall re gister and announce such termination. 
 
 Article 45   Beginning from the date the pa tent administration department under the State 
Council announces the grant of a patent right, if a un it or individual believes that such grant does not 
conform to the relevant provisions of this Law, it or he may request that the patent review board 
declare the said patent right invalid. 
 
 Article 46   The patent review board shall ex amine the request for declaring a patent right 
invalid and make a decision in a timely manner a nd notify the requesting person and the patentee of 
its decision. The decision on declaring a patent right  invalid shall be registered and announced by the 
patent administration department under the State Council. 
  A person that is dissatisfied with the patent review board's decision on declaring a patent right invalid or its decision on affirmi ng the patent right may take lega l action before a people's court, 
within three months from the date of receipt of the notification. The peopl e's court shall notify the 
opposite party in the invalidation procedure to participate in the litigation as a third party. 
  Article 47   Any patent right that has been decl ared invalid shall be deemed to be non-existent 
from the beginning.   IP/N/1/CHN/P/2 
 Page 17 
 
 
   The decision on declaring a patent right invalid  shall have no retroactive effect on any written 
judgment or written mediation on patent infringeme nt that has been made  and enforced by the 
people's court, or on any decision concerning the ha ndling of a dispute over the patent infringement 
that has been performed or compulsively executed, or on any contract for permitted exploitation of the 
patent or for transfer of patent rights that has b een performed--prior to the invalidation declaration of 
the patent right. However, compensation shall be made for the losses caused to another person mala 
fides by the patentee.   Where the patent infringement compensation, roya lties, and patent right transfer fees are not 
refunded pursuant to the provisions of the preceding paragraph, which constitutes a blatant violation 
of the principle of fairness, refund shall be made fully or partly. 
 
Chapter VI 
Compulsory License for Exploitation of a Patent 
 
 Article 48   Under any of the following circ umstances, the patent administration department 
under the State Council may, upon application made by any unit or individual that possesses the 
conditions for exploitation, grant a compulsory license for exploitation of an in vention patent or utility 
model patent:   (1)  When it has been three years since the da te the patent right is granted and four years 
since the date the patent application is submitted, the patentee, without leg itimate reasons, fails to 
have the patent exploited or fully exploited; or  (2)  The patentee's exercise of the patent ri ght is in accordance with law, confirmed as 
monopoly and its negative impact on competiti on needs to be eliminated or reduced. 
 
 Article 49   Where a national emergency or any extraordinary state of affairs occurs, or public 
interests so require, the patent administrati on department under the State Council may grant a 
compulsory license for exploitation of an invention patent or utility model patent. 
 
 Article 50   For the benefit of public health , the patent administration department under the 
State Council may grant a compulsory license for manufacture of the drug, for which a patent right 
has been obtained, and for its export to the countries or regions that conform to the provisions of the 
relevant international treaties to which the People's Republic of China has acceded. 
 
 Article 51   If an invention or utility model, for which the patent right has been obtained, represents a major technological advancement of re markable economic significance, compared with 
an earlier invention or utility model for which th e patent right has already been obtained, and 
exploitation of the former relies on exploitation of the latter, the patent administration department 
under the State Council may, upon application made by the latter, grant it a compulsory license to exploit the earlier invention or utility model.   Under the circumstance where a compulsory li cense for exploitation is granted in accordance 
with the provisions of the preceding paragraph, th e patent administration department under the State 
Council may, upon application made by the earlier patentee, grant it a compulsory license to exploit the later invention or utility model. 
 
 Article 52   If an invention involved in a compulsory license is a semi-conductor technology, 
the exploitation thereof shall be limited to the purpo se of public interests and to the circumstances as 
provided for in Subparagraph (2) of Article 48 of this Law. 
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   Article 53   Except for the compulsory licen se granted in accordance with the provisions of 
Subparagraph (2) of Article 48 or Article 50 of this Law, compulsory license shall mainly be exercised for the supply to the domestic market. 
 
 Article 54   A unit or individual that appli es for a compulsory licen se in accordance with the 
provisions of Subparagraph (1) of Article 48 or Artic le 51 of this Law shall provide evidence to show 
that it or he has, under reasonable terms, requests the patentee's permission for exploitation of the 
patent, but fails to obtain such permission within a reasonable period of time. 
 
 Article 55   The decision made by the pate nt administration department under the State 
Council on granting of a compulsory license for exploitation shall be notified to the patentee in a 
timely manner and shall be registered and announced.   In a decision on granting of the compulsory  license for exploitation shall, according to the 
reasons justifying the compulsory license, be specifi ed the scope and duration for exploitation. When 
such reasons cease to exist and are unlikely to recu r, the patent administration department under the 
State Council shall, upon request by the patentee, ma ke a decision to terminate the compulsory license 
after examination. 
 
 Article 56   Any unit or individual that is granted a compulsory license for exploitation shall not have an exclusive right to exploitation and shall not have the right to allow exploitation by others. 
 
 Article 57   The unit or individual that is granted a compulsory license for exploitation shall pay reasonable royalties to the patentee, or handl e the issue of royalties in accordance with the 
provisions of the relevant international treaties to which the People's Republic of China has acceded. 
The amount of royalties to be paid shall be subject  to consultation between the two parties. In the 
event of failure to reach an agreement between the two parties, the patent administration department 
under the State Council shall make a ruling. 
 
 Article 58   If a patentee is dissatisfied w ith the decision made by the patent administration 
department under the State Council -on granting of the compulsory license for exploitation, or if the patentee, or the unit or individual that has obtained the compulsory license for exploitation is 
dissatisfied with the ruling made by the patent  administration department under the State Council 
regarding the royalties for the compul sorily licensed exploitation, it or  he may take legal action before 
the people's court within three months from the date  of receipt of the notification of the ruling. 
 
Chapter VII 
Protection of Patent Rights 
 
 Article 59   For the patent right of an inventi on or a utility model, the scope of protection shall 
be confined to what is claimed, and the written de scription and the pictures attached may be used to 
explain what is claimed.  
 For the design patent right, the scope of prot ection shall be confined to the design of the 
product as shown in the drawings or pictures, and the brief description may be used to explain the said 
design as shown in the drawings or pictures. 
 
 Article 60   If a dispute arises as a result of exploitation of a patent without permission of the 
patentee, that is, the patent right of the patentee  is infringed, the dispute shall be settled through 
consultation between the parties. If the parties are not willing to consult or if consultation fails, the 
patentee or interested party may take legal action before a people's court, and may also request the 
administration department for patent -related work to handle the dispute. If, when handling the dispute, 
the said department believes the infringement is established, it may order the infringer to cease the  IP/N/1/CHN/P/2 
 Page 19 
 
 
  infringement immediately; if the infringer is dissatisfi ed with the order, he may, within 15 days from 
the date of receipt of the notification of the or der, take legal action before a people's court in 
accordance with the Admini strative Procedure Law of the People's Republic of China. If the infringer 
neither takes legal action at the expiration of the time limit nor ceases the infringement, the said 
department may file an application with the people's court for compulsory enforcement. The 
administration department for patent-related work that handles the call shall, upon request of the 
parties, carry out mediation concerning the amount of  compensation for the patent right infringement. 
If mediation fails, the parties may take legal acti on before the people's court in accordance with the 
Civil Procedure Law of the People's Republic of China. 
 
 Article 61   If a dispute over patent infringeme nt involves an invention patent for the method 
of manufacturing a new product, the unit or individual manufacturing the same product shall provide evidence to show that the manufacturing method of their own product is different from the patented 
method.  
 If a dispute over patent infringement involves a utility model patent or a design patent, the 
people's court or the administration department for patent-related work may re quire the patentee or the 
interested parties to present a patent right assessm ent report prepared by the patent administration 
department under the State Council through searchi ng, analyzing, and assessing the relevant utility 
model or design, which shall serve as evidence for tr ying or handling the patent infringement dispute. 
 
 Article 62   In a patent infringement dispute, if the accused infringer has evidence to prove 
that the technology or design exploited is an exis ting technology or design, the exploitation shall not 
constitute a patent right infringement. 
 
 Article 63   A person who counterfeits the pate nt of another person sh all, in addition to 
bearing civil liabilities in accordance with law, be  ordered by the administration department for 
patent-related work to put it right, and the depart ment shall make the matter known to the public, 
confiscate his unlawful gains and, in addition, impo se on him a fine of not more than four times the 
unlawful gain; if there are no unlawful gains, a fi ne of not more than RMB 200,000 may be imposed 
on him; and if a crime is constituted, criminal res ponsibility shall be pursued in accordance with law. 
 
 Article 64   When the administration depart ment for patent-related work investigates and 
handles the suspected counterfeiting of a patent, it may, based on evidence obtained, inquire the 
parties concerned, and investigate the circumst ances related to the suspected illegal act; it may 
conduct on-the-spot inspection of the places where th e suspected illegal act is committed; consult and 
duplicate the relevant contracts, invoices, account books and other related ma terials; and check the 
products related to the suspected illegal act and seal  or detain the products that are proved to be 
produced by the counterfeited patent.   When the administration department for pate nt-related work performs its duties as prescribed 
in the preceding paragraph, the parties concerned shall provide assistance and cooperation, instead of 
refusing to do so or creating obstacles. 
 
 Article 65   The amount of compensation for pa tent right infringement shall be determined 
according to the patentee's actual losses caused by  the infringement. If it is hard to determine the 
actual losses, the amount of compensation may be de termined according to the benefits acquired by 
the infringer through the infringement. If it is hard to determine the losses of the patentee or the 
benefits acquired by the infringer, the amount of compensation may be determined according to the 
reasonably multiplied amount of the royalties of th at patent. The amount of compensation shall 
include the reasonable expenses paid by the pate ntee for putting an end to the infringement. 
 IP/N/1/CHN/P/2 
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   If the losses of the patentee, benefits of the infri nger, or royalties of the patent are all hard to 
determine, the people's court may, on the basis of the factors such as the type of patent right, nature of 
the infringement, and seriousness of the case, determine the amount of compensation within the range from 10,000 yuan to 1,000,000 yuan. 
 
 Article 66   If the patentee or interested part y has evidence to prove that another person is 
committing or is about to commit a patent infringement, which, unless being checked in time, may cause irreparable harm to his lawful rights and inter ests, he may, before taking legal action, file an 
application to request that the people' s court order to have such act ceased. 
 
 When filing such an application,  the applicant shall provide guar antee. In the event of failure 
to provide guarantee, the application shall be rejected.   The people's court shall make a ruling within 48 hours from the time of its acceptance of the 
application. If an extension is needed under sp ecial circumstances, a 48-hour extension may be 
allowed. If a ruling is made to order to have the re levant act ceased, it shall be enforced immediately. 
The party that is dissatisfied with the ruling may f ile once for review, and the enforcement shall not be 
suspended during the period of review.   If the applicant does not take legal action within 15 days from the date the people's court takes 
measures to have the relevant act ceased, th e people's court shall lift such measures. 
 
If the application is wrong, the applicant sh all compensate the losses suffered by respondent due 
to ceasing of the relevant act. 
 
 Article 67   To check a patent infringement, when  evidence might be lost or might be hard to 
acquire thereafter, the patentee or interested party ma y, before taking legal action, file an application 
with the people's court for evidence preservation.   If the people's court takes preservation measur es, it may order the applicant to provide 
guarantee. If the applicant fails to provide gua rantee, the application shall be rejected. 
 
 The people's court shall make a ruling within 48 hours from the time of its acceptance of the 
application. If it rules to take preservation measur es, such a ruling shall be enforced immediately. 
  If the applicant does not take legal action within 15 days from the date the people's court takes 
preservation measures, the people's court shall lift such measures. 
 
 Article 68   The period of limitation for action against patent right infringement shall be two 
years, commencing from the date when the patentee  or interested party knows or should have known 
of the infringement.   If an appropriate royalty is not paid for using an invention during the period from the 
publication of the invention patent application to th e grant of the patent right, the period of limitation 
for taking legal action by the patentee for reques ting payment of royalties shall be two years, 
commencing from the date when the patentee knows or  should have known of the use of that patent 
by another person. However, the period of limita tion for action shall commence from the date when 
the patent right is granted, if the patentee knows or should have known of th e use before the patent 
right is granted. 
 
 Article 69   The following shall not be de emed to be patent right infringement: 
  IP/N/1/CHN/P/2 
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   (1)   After a patented product or a product dir ectly obtained by using the patented method is 
sold by the patentee or sold by any unit or individual with the permission of the patentee, any other person uses, offers to sell, sells or imports that product;  (2)   Before the date of patent applica tion, any other person has already manufactured 
identical products, used identical method or has ma de necessary preparations for the manufacture or 
use and continues to manufacture the products or use the method within the original scope; 
 (3)   With respect to any foreign means of transportation that temporarily passes through the territory, territorial waters, or territorial airspace of China, the relevant patent is used in the devices 
and installations for its own needs, in accordance with the agreement concl uded between the country 
it belong to and China, or in accordance with an y international treaty to which both countries have 
acceded, or on the principle of mutual benefit; 
 (4)   Any person uses the relevant patent speci ally for the purpose of scientific research and 
experimentation; and  (5)   Any person produces, uses, or imports pate nted drugs or patented medical apparatus and 
instruments, for the purpose of providing informat ion required for administrative examination and 
approval, or produces or any other person imports patented drugs or patented medical apparatus and 
instruments especially for that person. 
 
 Article 70   Where any person, for the pur pose of production and business operation, uses, 
offers to sell or sells a patent-infringing product without knowing that such product is produced and 
sold without permission of the patentee, he shal l not be liable for compensation provided that the 
legitimate source of the product can be proved. 
 
 Article 71   If, in violation of the provisions  of Article 20 of this Law, a person files an 
application for patent in a foreign country, thereb y divulging national secrets, the unit where he works 
or the competent authority at a higher level shall impose on him an administrative sanction. If a crime 
is constituted, he shall be investigated for criminal responsibility according to law. 
 
 Article 72   If a person usurps the right of an inventor or designer to apply for a non-
employment invention patent, or usurps any other rights and interests of an inventor or designer 
specified in this Law, he shall be given an admi nistrative sanction by the unit where he works or the 
competent authority at a higher level. 
 
 Article 73   The administration department fo r patent-related work shall not be involved in 
recommending patented products to the public or engage in any other similar business activities. 
  If the administration department for patent -related work violates the provisions of the 
preceding paragraph, its immediate superior or the s upervisory authority shall order it to rectify, and 
confiscate its unlawful gains, if any; if the circ umstances are serious, the principal leading person 
directly in charge and the other persons directly r esponsible shall be given administrative sanctions in 
accordance with law. 
 
 Article 74   Where a staff member of the govern ment department engaged in administration of 
patent-related work or of a relevant department  neglects his duty, abuses his power, or commits 
irregularities for personal gain, which constitutes a crime, he shall be pursued for criminal 
responsibility in accordance with law.  If the case is not serious enough to constitute a crime, he shall 
be given an administrative sanction in accordance with law. 
 IP/N/1/CHN/P/2 
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  Chapter VIII 
Supplementary Provisions 
 
 Article 75   To apply for patent at the pa tent administrative department under the State 
Council or go through other formalities, fees shall be  paid in accordance with relevant regulations. 
 
 Article 76   This Law shall go into effect on April 1, 1985.     
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