Navigating the New Waters: Understanding China’s Revised Patent Law on Open Licensing

The amendment to China’s Patent Law brings significant changes, particularly in introducing a detailed open licensing system encapsulated in Articles 50 to 52. This system aims to streamline the process of obtaining patent licenses and encourage broader utilization of patented technologies, thus fostering innovation and collaboration within the patent ecosystem. Here’s a breakdown of the key provisions and implications for patent holders and potential licensees.

Introduction to Open Licensing Under the Revised Patent Law

Open licensing is a pivotal mechanism under the revised Patent Law, offering a pathway for patent rights holders to declare their willingness to license their patents to any interested parties. The amendments specify the procedure for making and withdrawing such declarations, the benefits entailed, including fee reductions, and the dispute resolution mechanisms applicable to such arrangements.

Article 50: Making and Withdrawing Open License Declarations

Article 50 outlines the process for patent holders to make an open license declaration, including for utility model and design patents. A notable requirement is the provision of a patent evaluation report, though the law does not impose substantive criteria on the report’s conclusions. This absence of restriction suggests that the law prioritizes the availability of the patent for licensing over the evaluative content of the report, acknowledging the report’s advisory role rather than a definitive legal judgment on patent validity.

Article 51: The Balance of Interests

The revised Article 51 highlights the balance of interests between patent holders and licensees under the open license system. Patent holders retain the ability to negotiate individual license agreements even after declaring an open license, without legal constraints to align these agreements with the declared open license terms. To protect licensees under open licenses, the law specifies that licenses obtained through this mechanism are non-exclusive, ensuring that no party can monopolize the patent rights to the detriment of others.

Flexibility and Market Responsiveness

One aspect not directly addressed in the amendments is the modification of an open license declaration after its submission. The ability to withdraw and redeclare open licenses with different terms offers a workaround, allowing patent holders to adapt to market changes and potentially enhancing the flexibility and attractiveness of open licensing.

Towards a More Collaborative Patent Environment

The establishment of a more detailed open licensing framework in China’s Patent Law marks a significant step towards fostering a more collaborative, dynamic, and accessible patent ecosystem. By clarifying the procedures and benefits of open licensing and ensuring a balance of interests between patent holders and licensees, the law aims to encourage the wider dissemination and use of patented technologies, ultimately benefiting the broader innovation landscape.

Engage with Us

As stakeholders in the global patent community, your insights and experiences with open licensing are invaluable. How do you see these changes impacting the innovation ecosystem, both within China and internationally? Share your thoughts and join the conversation on fostering a more open and collaborative patent environment.