Introduction of types of Patent Exploitation License in China
2021-08-12
Borsam IP
Borsam IP
The patent exploitation license refers to the owner of patented technology, or its granted person permits other peoples to exploit his patent in a certain period of time, a certain area and a certain manner, and charges licensee for use. The patentee is the licensor, and the person allowed to exploit is the licensee.
The licensor and the licensee shall sign a patent license contract when building a license and being licensed relationship. Besides, the patent license contract only authorizes the licensee to exploit the patented technology. It doesn’t mean the transfer of patent ownership; that is, the licensee has no right to permit any unit or individual other than the patent license contract to exploit the patent.
There are only three types of patent exploitation license prescribed by the law. However, the methods of patent license are carried out by the content of the contract. It may be judged based on the specific rights and obligations of the contract in practice.
1. Sole License
1.1 Meaning
The Licensor shall license the patent to only one licensee to exploit the patent within the scope of the agreed permission to exploit the patent, and the Licensor shall not exploit the patent according to the agreement.
1.2 Characteristics
(1) The licensee can monopolize the patent right, even if the licensee is not allowed to exploit the patent;
(2) The licensor can no longer license third parties; (3) The licensor can initiate an infringement lawsuit but tends not to enjoy the right to compensation;
(4) The licensee can initiate an infringement lawsuit separately and enjoy the right to compensation.
2.Exclusive License
2.1 Meaning
The licensor can license the patent to only one licensee to exploit the patent in a certain area. Besides, the licensor can exploit the patent on its own in accordance with the contract.
2.2 Characteristics
(1) The licensor and the licensee can exploit the patent;
(2) The licensor can initiate an infringement lawsuit and enjoy the right to compensation;
(3) If the licensor waives or does not sue, the licensee can initiate an infringement lawsuit and enjoy the right to compensation.
3.Non-exclusive License
3.1 Meaning The licensor shall permit other peoples to exploit the patent within the scope of the agreed license to exploit the patent, and the licensor also can exploit the patent on its own.
3.2 Characteristics
(1) The licensor can exploit the patent;
(2) The licensor can license multiple people;
(3) The licensor can initiate an infringement lawsuit and enjoy the right to compensation;
(4) The licensee cannot initiate an infringement lawsuit.
The above content is a brief introduction to the three statutory types of patent exploitation license. Through the patent exploitation license, the scientific and technological achievements can be promoted and applied in the market, and the requirements of licensor and licensees can be met so that patent can generate the greatest market value.
In addition, the patentee can understand the characteristics of the three statutory types of licenses in China based on the above introduction. If there is a patent licensing intention, the patentee can choose the most suitable licensing type based on your situation and needs, to maximize the benefits of patent rights.
Besides, please note that any license contract for exploitation of a patent which has been concluded by the patentee with an entity or individual shall, within three months from the date of entry into force of the contract, be submitted to CNIPA for the record.
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