Promulgating Institution: Standing Committee of the National People's Congress
Document Number: Order No. 8 of the President of the People's Republic of China
Promulgating Date: 12/27/2008
Effective Date: 10/01/2009

Order No. 8 of the President of the People's Republic of China
The decision of the Standing Committee of the National People's Congress on Revising the "Patent Law of the People's Republic of China" adopted at the Sixth Session of the Standing Committee of the 11th National People's Congress on December 27, 2008 is hereby promulgated and shall become effective on October 1, 2009.
Hu Jintao President of the People's Republic of China
December 27, 2008


Patent Law of the People's Republic of China

Content
Chapter 1: General Provisions
Chapter 2: Conditions for Granting Patent Rights
Chapter 3: Patent Application
Chapter 4: Examination and Approval of Patent Applications
Chapter 5: Duration, Termination and Invalidation of Patent Rights
Chapter 6: Compulsory License for the Exploitation of Patent
Chapter 7: Protection of Patent Rights
Chapter 8: Supplementary Provisions
 
Chapter 1: General Provisions
 
  Article 1     This Law is formulated for the purposes of protecting the lawful rights and interests of patentees, encouraging invention, promoting the application of inventions, enhancing innovation capacity, facilitating the advancement of science and technology and the economic and social development.
 
  Article 2     For the purposes of this Law, inventions shall include inventions, utility models and designs.
Inventions shall mean new technical solution proposed for a product, a process or the improvement thereof.
Utility models shall mean new technical solutions proposed for the shape and structure of a product, or the combination thereof, which are fit for practical applicability.
Designs shall mean, with respect to a product, new designs of the shape, pattern, the combination thereof, or the combination of the color with shape and pattern, which create an aesthetic feeling and are fit for industrial application.
  Article 3     The Patent Administration Department under the State Council shall be responsible for the administration of nationwide patent related work. It shall accept and examine patent applications in a uniform way and grant patent rights in accordance with the law.
The departments of the people's governments of all provinces, autonomous regions and municipalities directly under the Central Government in charge of patent-related work shall be responsible for the patent administration within their respective administrative regions.
  Article 4     Where an invention in a patent application involves national security or other major interest of the State and confidentiality shall be maintained, the application shall be handled in accordance with the relevant provisions of the State.
  Article 5     Patent rights shall not be granted for inventions that violate the law or social ethics, or harm public interests.
Patent rights shall not be granted for inventions that are obtained in violation of the provisions of laws and administrative regulations, or are accomplished by using and relying on genetic resources.
  Article 6     An invention 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 a service invention. For a service invention, the employer has the right to apply for a patent. After such an application is approved, the employer shall be the patentee.
For a non-service invention, the inventor or designer has the right to apply for a patent. After such an application is approved, the said inventor or designer shall be the patentee.
In cases that inventions are made by using the materials and technical conditions of an employer, if the employer has concluded a contract with the inventor or designer stipulating agreements concerning the right to apply for the patent or the ownership of the patent right concerned, such agreements shall prevail.
  Article 7     No organization or individual shall prevent the inventor or designer from filing a patent application for a non-service invention.
  Article 8     With regard to inventions accomplished by two or more organizations or individuals in collaboration, or an invention accomplished by an organization or individual under entrustment of other organizations or individuals, the right to apply for a patent shall vest in the organizations or individuals that have accomplished the invention either by themselves or in collaboration with others, unless it is otherwise agreed upon. If the application is approved, the applying organizations or individuals shall be the patentees.
  Article 9     Only one patent right can be granted for the same invention. However, where 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 and the applicant declares to relinquish such utility model patent, the invention patent may be granted.
If two or more applicants apply for a patent for the same invention separately, the patent right shall be granted to the applicant who files first.
  Article 10     The Right to apply for a patent and patent right can be transferred.
If a Chinese organization or individual transfers the right to apply for a patent or patent rights to a foreigner, foreign enterprise or other foreign organizations, they shall perform the relevant procedures in accordance with the relevant laws and administrative regulations.
For the transfer of the right to apply for a patent or patent right, the parties concerned shall conclude a written contract and file for registration at the Patent Administration Department under the State Council, and the latter shall make a public announcement. The transfer of the right to apply for a patent or patent right shall become effective on the registration date.
  Article 11     After an invention or a utility model patent right is granted, unless otherwise specified in this Law, no organization or individual may exploit the patent without licensing from the patentee, i.e., they may not, for the purposes of production and business operation, produce, use, offer to sell, sell, or import the patented products, nor use the patented method or use, offer to sell, sell or import products that are acquired directly through the patented method.
After a design patent right is granted, no organization or individual may exploit the patent without licensing from the patentee, i.e., they may not produce, offer to sell, sell or import the design patent products for the purposes of production and business operation.
  Article 12     Any organization or individual that intends to exploit the patent of another person shall conclude a license contract with the patentee and pay the royalties. The licensee shall not have the right to allow any organization or individual not specified in the contract to exploit the said patent.
  Article 13     After the application for an invention patent is publicized, the applicant may require the organization or individual that exploits the said patent to pay appropriate fees.
  Article 14     If an invention patent of a State-owned enterprise or institution is of great significance to the national or public interests, after the competent department under the State Council and the people's government of the relevant province, autonomous region, or municipality directly under the Central Government has reported it to the State Council for approval, they may decide on applying the patent within the approved scope and allow the designated organizations to exploit such a patent. The said organizations shall pay the royalties to the patentee in accordance with the provisions of the State.
  Article 15     If there are agreements regarding the exercise of rights by the co-owner of the right to apply for the patent and the patent right, such agreements shall prevail. In the absence of such an agreement, the co-owner may independently exploit such a patent or may license others to exploit the said patent. If others are licensed to exploit the patent, the royalties charged shall be distributed among the co-owners.
Except under the circumstances specified in the preceding paragraph, exercise of the co-owned right to apply for patent or patent right shall be subject to the consent of all the co-owners.
  Article 16     The organization that is granted the patent right shall reward the inventor or designer of a service invention. After such invention patent is exploited, the inventor or designer shall be given reasonable reward according to the scope of application and the resulting economic benefit.
  Article 17     Inventors or designers shall have the right to state in the patent documents that they are the inventors or designers.
Patentees shall have the right to indicate the patent mark on the patented products or the package of such products.
  Article 18     Where a foreigner, foreign enterprise or other foreign organization without habitual residence or business premises in China applies for a patent, the application shall be handled in accordance with the agreements concluded by his/its country and China or international treaties to which both the countries have acceded or in accordance with this Law on the principle of reciprocity.
  Article 19     If foreigners, foreign enterprises, or other foreign organizations without habitual residence or business premises in China apply for patents or handle other patent-related matters, they shall entrust lawfully established patent agencies with such matters.
If Chinese organizations or individuals apply for patents or handle other patent-related matters, they may entrust legally established patent agencies with such matters.
Patent agencies shall abide by the laws and administrative regulations and handle patent applications or other patent-related matters as entrusted by their principals. They shall also be obligated to keep confidential the contents of the inventions of their clients, unless the patent applications have been publicized or announced. The specific measures for the administration of the patent agencies shall be formulated by the State Council.
  Article 20     Any organization or individual that applies for a patent in a foreign country for an invention or utility model accomplished in China shall report to the Patent Administration Department under the State Council for confidentiality examination. The procedures and time limit for confidentiality examination shall be in conformity with the provisions of the State Council.
Chinese organizations or individuals may file for international patent applications in accordance with the international treaties to which China has acceded. The applicants filing international patent applications 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 international treaties to which China has acceded and the relevant provisions of this Law and 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 Paragraph 1 herein, if an application is also filed for the patent in China, the patent right shall not be granted.
  Article 21     The Patent Administration Department under the State Council and its Patent Reexamination Board shall, according to the requirements of objectivity, fairness, accuracy, promptness, handle relevant patent applications and requests in accordance with the law.
The Patent Administration Department under the State Council shall publicize the patent related information in a complete, accurate and timely manner, and publish patent gazettes on a regular basis.
Before patent applications are publicized or announced, the staff members of the Patent Administration Department under the State Council and relevant personnel shall be obligated to keep such information confidential.
Chapter 2: Conditions for Granting Patent Rights
  Article 22     Inventions and utility models for which patent rights are granted shall be of novelty, creativity and practical applicability.
Novelty shall mean that the invention or utility model concerned shall not be an existing technology; no patent application has been filed by any organization or individual for any identical invention or utility model with the Patent Administration Department under the State Council before the date of application, and such an application is to be recorded in the patent application documents or the patent documentations, which will be publicized or announced after the date of application.
Creativity shall mean that, compared with the existing technologies, an invention concerned possesses prominent substantive features and indicates remarkable advancements, and a utility model concerned possesses substantive features and indicates advancements.
Practical applicability shall mean that the said invention or utility model may be used for production or be utilized, and may produce positive effect.
For the purposes of this Law, existing technologies shall 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 shall not fall under any existing design; no application has been filed for the same design by any organization or individual with the Patent Administration Department under the State Council before the date of application, nor is such an application recorded in the patent documents announced after the date of application.
Designs for which the patent right is granted shall be distinctly different from the existing designs or the combination of such designs.
Designs for which a patent right is granted shall not be in conflict with lawful rights acquired by others before the date of application.
For the purposes of this Law, existing designs shall mean designs that are known to the public both domestically and abroad before the date of application.
  Article 24     Within six months before the date 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; or
(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 items:
(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 marking the pattern, color or combination of these two of prints.
The patent right may be granted for the production methods of the products specified in Item (4) of the preceding paragraph in accordance with this Law.
Chapter 3: Patent Application
  Article 26     For the application for an invention or utility model patent, the relevant documents shall be submitted, such as a written request, a written description and its abstract, and a written claim.
A written request shall specify the name of the invention or utility model, the name of the inventor, the name and address of the applicant and other related matters.
A description shall describe the invention or utility model in a clear and comprehensive way to enable a technician in the relevant technology field to carry it out; when necessary, pictures shall be attached. An abstract shall briefly introduce the main technical points of an invention or utility model.
A written claim shall be based on the written description, and shall clearly and concisely define the proposed scope of patent protection.
With regard to an invention accomplished by relying on genetic resources, the applicant shall, in the patent application documents, indicate the direct source and original source of such genetic resources. If the applicant fails to indicate the original source, reasons shall be provided.
  Article 27     For the application for a design patent, a written request, a drawing or picture of the design, a brief description of the design, and other relevant documents shall be submitted.
The relevant drawings or pictures submitted by the applicant shall clearly show the design of the products for which patent protection is requested.
  Article 28     The date when the Patent Administration Department under the State Council receives the patent application document shall be deemed as the date of application. If the application documents are delivered by post, the date of mailing indicated by the postmark shall be deemed as the date of application.
  Article 29     If, within twelve months after an application for an invention or utility model patent is filed in a foreign country for the first time, or within six months after an application for a design patent is filed in a foreign country for the first time, the applicant files an application for a patent in China for the same subject matter, such applicant may be entitled to the right of priority in accordance with any agreement concluded between the said foreign country and China, or in accordance with any international treaty to which both countries have acceded, or on the basis of the principle of mutual recognition of the right of priority.
If, within twelve months after an application for an invention or utility model patent is filed in China for the first time, the applicant files an application for a patent with the Patent Administration Department under the State Council for the same subject matter, the applicant may be entitled to the right of priority.
  Article 30     An applicant who claims 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. If the written declaration is not submitted or duplicates of the patent application documents are not submitted within the specified time limit, the applicant shall be deemed to have waived the right of priority.
  Article 31     An application for an invention patent or utility model patent shall be limited to one invention or utility model. Two or more inventions or utility models belonging to a single general invention concept may be handled with one application.
An application for a design patent shall be limited to one design. Two or more similar designs of the same product or two or more designs of products of the same class that are sold or used in sets may be handled with one application.
  Article 32     An applicant may withdraw the patent application before it is granted the patent right.
  Article 33     An applicant may amend the patent application documents, provided that the amendment to the invention patent or utility patent application documents does not exceed the scope specified in the original written description and written claim or the amendment to the design patent application documents does not exceed the scope shown in the original drawing or picture.
Chapter 4: Examination and Approval of Patent Applications
  Article 34     Upon receipt of an invention patent application, if the Patent Administration Department under the State Council confirms that the application meets the requirements of this Law after preliminary examination, the application shall be publicized within 18 months from the date of application. The Patent Administration Department under the State Council may publicize the application on an earlier date upon the request of the applicant.
  Article 35     Within three years after an invention patent application is filed, the Patent Administration Department under the State Council may, upon the request by the applicant at any time, carry out substantive examination of the application. If the applicant, without legitimate ground, fails to request substantive examination within the given time limit, such an application shall be deemed to have been withdrawn.
The Patent Administration Department under the State Council may take the initiative to carry out substantive examination when necessary.
  Article 36     When an applicant of an invention patent requests substantive examination, reference materials relating to the invention existing prior to the date of application shall be submitted.
If an application has been filed for an invention patent in a foreign country, the Patent Administration Department under the State Council may require the applicant to submit within a specified time limit materials concerning any search made for the purpose of examining that application in that foreign country, or materials concerning the results of any examination made in that country. In the event of failure of submission within the specified time limit without legitimate ground, the application shall be deemed as having been withdrawn.
  Article 37     After the Patent Administration Department under the State Council has made the substantive examination in respect to the invention patent application, if it finds that the application does not meet the provisions of this Law, it shall notify the applicant to state its opinions within a specified time limit or make amendment to the application. If no reply is given within the specified time limit without legitimate ground, such an application shall be deemed as having been withdrawn.
  Article 38     After the applicant states opinions on or makes amendments to the invention patent application, if the Patent Administration Department under the State Council still believes the application does not meet the provisions of this Law, it shall reject such an application.
  Article 39     If no reason for rejection is discovered after an invention patent application is substantively examined, the Patent Administration Department under the State Council shall make a decision on the granting of the invention patent right, issue an invention patent certificate, and meanwhile register and announce the same. The invention patent right shall become effective on the date of the announcement.
  Article 40     If no reason for rejection is discovered after a utility model or design patent application is substantively examined, the Patent Administration Department under the State Council shall make a decision on granting utility model or design patent rights, issue a corresponding patent certificate, and meanwhile register and announce the same. The utility model patent right or design patent right shall become effective on the date of its announcement.
  Article 41     The Patent Administration Department under the State Council shall establish a Patent Reexamination Board. If a patent applicant is dissatisfied with the decision of rejecting the application by the Patent Administration Department under the State Council, the applicant may, within three months after receipt of the notice, file a request with the Patent Reexamination Board for review. After review, the Patent Reexamination Board shall make a decision and notify the patent applicant.
If the patent applicant is dissatisfied with the review decision of the Patent Reexamination Board, the applicant may bring a suit in the people's court within three months from receipt of the notice.
Chapter 5: 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 or design patent right shall be 10 years, 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 circumstances, the patent right shall be terminated before the expiration of the duration:
(1) The annual fee is not paid as specified; or
(2) The patentee waives the patent right by a written declaration;
If any patent right is terminated before the duration expires, the Patent Administration Department under the State Council shall register and announce such a termination.
  Article 45     After the Patent Administration Department under the State Council announces the grant of the patent right, if any organization or individual believes that the grant of the said patent right does not conform to the relevant provisions of this Law, such an organization or individual may request that the Patent Reexamination Board declares the said patent right invalid.
  Article 46     The Patent Reexamination Board shall examine the request to declare the patent right invalid and make a decision in a timely manner and notify the person that has filed the request and the patentee. The decision to declare any patent right invalid shall be registered and announced by the Patent Administration Department under the State Council.
Anyone that is dissatisfied with the Patent Reexamination Board's decision to declare the patent right invalid or its decision to affirm the patent right may, bring a suit in the people's court, within three months from receipt of the notice. The people'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 declared invalid shall be deemed to be non-existent from the beginning.
The decision declaring the patent right invalid shall have no retroactive effect on any written judgment or written 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 that has been performed or compulsively executed, or on any contract of patent license or of transfer of patent rights that has been performed prior to the invalidation declaration of the patent right; however, compensations shall be made for the losses caused to other persons mala fide on the part of the patentee.
If the patent infringement compensation, royalties, and patent right transfer fees are not required to be refunded pursuant to the provisions of the preceding paragraph, but such treatment is in obvious violation of the principle of equity, the refund shall be made fully or partly.
Chapter 6: Compulsory License for the Exploitation of Patent
  Article 48     Under any of the following circumstances, the Patent Administration Department under the State Council may, upon the application of any organization or individual that possesses exploitation conditions, grant a compulsory license for the exploitation of an invention patent or utility model patent:
(1) When it has been three years since the date of granting the patent right and four years since the patent application date, the patentee fails to exploit or fails to fully exploit the patent without legitimate grounds; or
(2) The patentee's act of exercising the patent right is determined as monopoly in accordance with the law and the negative impact of such an act on competition needs to be eliminated or reduced.
  Article 49     Where a national emergency or any extraordinary state of affairs occurs, or the public interest so requires, the Patent Administration Department under the State Council may grant a compulsory license to exploit the invention patent or utility model patent.
  Article 50     For the purpose of public health, with regard to patented drugs, the Patent Administration Department under the State Council may grant a compulsory license to manufacture such drugs and export them to countries or regions that conform to the provisions of relevant international treaties to which the People's Republic of China has acceded.
  Article 51     If a patented invention or utility model had made significant technological advancement with remarkable economic significance, compared with an earlier patented invention or utility model and the exploitation of the former relies on the exploitation of the latter, the Patent Administration Department under the State Council may, upon the application of the latter patentee, grant a compulsory license to exploit the earlier invention or utility model.
Under the circumstance that a compulsory license for exploitation is granted in accordance with the preceding paragraph, the Patent Administration Department under the State Council may, upon application by an earlier patentee, grant a compulsory license to exploit the latter 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 be for the purpose of public interest and for the circumstances as provided in Item (2) of Article 48 herein.
  Article 53     Except for the compulsory license granted in accordance with Item (2) of Article 48 or Article 50 of this Law, the implementation of a compulsory license shall be mainly for the supply in the domestic market.
  Article 54     An organization or individual that applies for a compulsory license in accordance with Item (1) of Article 48 or Article 51 of this Law shall provide evidence to prove that they have, under reasonable conditions, proposed a request to the patentee for being licensed to exploit the patent, but fails to obtain such license within reasonable time period.
  Article 55     A decision made by the Patent Administration Department under the State Council on the granting of a compulsory license for exploitation shall be notified to the patentee and shall be registered and announced.
A decision on the granting of the compulsory license for exploitation shall specify the scope and time for exploitation according to the reasons justifying the compulsory license. When such reasons are eliminated and are unlikely to recur, the Patent Administration Department under the State Council shall make a decision to terminate the compulsory license through examination, upon request by the patentee.
  Article 56     Any organization 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 license others for the exploitation.
  Article 57     The organization or individual that is granted a compulsory license for exploitation shall pay reasonable 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 shall be subject to the negotiations between the two parties. In the event of failure to reach an agreement by the two parties concerning the said amount, the Patent Administration Department under the State Council shall make a ruling.
  Article 58     If a patentee is dissatisfied with the decision on the granting of the compulsory license for exploitation made by the Patent Administration Department under the State Council, or if the patentee and the organization or individual that has been granted the compulsory license for exploitation are dissatisfied with the ruling made by the Patent Administration Department under the State Council regarding the royalties for the compulsory license for exploitation, they may file an action with the people's court within three months from receipt of the notice.
Chapter 7: Protection of Patent Rights
  Article 59     For the patent right of an invention or a utility model, the scope of protection shall be subject to the content of claims, and the written description and the pictures attached may be used for explaining the content of claims.
For the design patent right, the scope of protection shall be subject to the design of the product as shown in the drawings or pictures, brief descriptions may be used for describing the said design shown in the drawings or pictures.
  Article 60     If a dispute arises as a result of exploitation of a patent without the authorization of the patentee, that is, the patent right of the patentee is infringed; the dispute shall be settled through negotiation by the parties. If the parties are not willing to negotiate or if negotiation fails, the patentee or interested parties may file an action with the people's court, and may also request the department of the administration of patent-related work to handle the dispute. If the said department believes the infringement is established when handling the dispute, it may order the infringer to cease the infringement act immediately. Any party that is dissatisfied may, within 15 days from receipt of the notice on handling of dispute, file an action with the people's court in accordance with the Administrative Procedure Law of the People's Republic of China. If the infringer neither files an action upon expiration of the period nor ceases the infringement act, the said department may file an application with the people's court for compulsory enforcement. The department of the administration of patent-related work shall, upon request of the parties concerned, carry out mediation concerning the amount of compensation for the patent right infringement. If mediation fails, the parties may file an action with 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 infringement involves an invention patent for the manufacturing method of a new product, the organization or individual manufacturing the same product shall prove that the manufacturing method of their own products is different from the patented method.
If an infringement dispute involves a utility model patent or a design patent, the people's court or the department of the administration of patent-related work may require the patentee or interested parties to present a patent right assessment report, which shall be prepared by the Patent Administration Department under the State Council through searching, analyzing, and assessing the relevant utility model or design. Such a report shall serve as evidence for trying 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 they utilized falls under an existing technology or design, their act of exploitation shall not constitute a patent right infringement.
  Article 63     Anyone who counterfeits a patent of others shall, in addition to bearing civil liabilities in accordance with the law, be ordered by the department of the administration of patent-related work to make a correction, and an announcement shall be made accordingly. The relevant illegal gains shall be confiscated, and a fine of no more than four times the illegal gains may be imposed. If there are no illegal gains, a fine of no more than RMB 200,000 may be imposed. If the act constitutes a criminal offense, criminal liabilities shall be imposed in accordance with the law.
  Article 64     When investigating and handling the act of counterfeiting a patent, the department of the administration of patent-related work may, based on existing evidence, inquire the relevant parties, and investigate the situations relating to the alleged illegal acts. It may also conduct on-the-spot inspection against the places where the alleged illegal acts occur, examine and photocopy the relevant contracts, invoices, account books and other materials, and check products relating to the alleged illegal acts. Products that are proved to be produced by counterfeiting the patent may be sealed up or detained.
When the department of the administration of patent-related work performs its duties as prescribed in the preceding paragraph, the parties concerned shall provide assistance and cooperation instead of refusal or obstruction.
  Article 65     The amount of compensation for patent right infringement shall be determined according to the actual losses of the patentee caused by the infringement. If the actual losses cannot be easily determined, the compensation amount may be determined according to the benefit acquired by the infringer through the infringement. If the losses of the patentee or the benefit of the infringer cannot be easily determined, the compensation amount may be determined reasonably by referring to the times of the royalties of that patent. The amount of compensation shall include the reasonable expenditures paid by the patentee for preventing the infringement act.
If the losses of the patentee, gains of the infringer, or royalties of the patent cannot be easily determined, the people's court may, on the basis of the factors such as the type of patent right, nature of the infringement, and severity of the case, determine the amount of compensation within the range from RMB 10,000 to RMB 1,000,000.
  Article 66     If the patentee or interested party has evidence to prove that others are conducting or are to conduct any patent infringement, and such act, unless being prevented in a timely manner, will cause irreparable harm to their lawful rights and interests, the patentee or interested party may file an application with the people's court for ordering to have such act ceased before the litigation.
When filing such an application, the applicant shall provide guarantee. In the event of failure to provide guarantee, the application may be denied.
The people's court shall make a ruling within 48 hours from receipt of the application. If an extension is needed due to special circumstances, a 48-hour extension may be allowed. If a ruling is made to order to have the relevant act ceased, it shall be enforced immediately. The party dissatisfied with the ruling may apply once for review, and the enforcement shall not be suspended during the period of review.
If the applicant fails to file an action within 15 days after the people's court takes the said measures to cease the relevant act, the people's court shall lift such measures.
If the application is erroneous, the applicant shall compensate the losses suffered by the respondent for ceasing the relevant act.
  Article 67     To prevent a patent infringement act, when evidence might be lost or might not be acquired thereafter, the patentee or interested party may file an application with the people's court for evidence preservation.
If the people's court takes preservation measures, the applicant may be ordered to provide guarantee. The application shall be rejected if the applicant fails to provide the guarantee.
The people's court shall make a ruling within 48 hours from its acceptance of the application. If it rules to take preservation measures, such a ruling shall be enforced immediately.
If the applicant does not file an action within 15 days after the people's court takes preservation measures, the people's court may lift such measures.
  Article 68     The period of limitation of action for patent right infringement shall be two years, commencing from the date when the patentee or interested party knows or should know the infringement act.
If an appropriate royalty is not paid for using an invention after the invention patent application is publicized and before the patent right is granted, the time limit for action filed by the patentee claiming the payment of royalties shall be two years, commencing from the date when the patentee knows or should know the use of that patent by others. However, the period of limitation of action shall commence from the date when the patent right is granted if the patentee has already known or should know the use before patent right is granted.
  Article 69     The following circumstances shall not be deemed as a patent right infringement:
(1) After a patented product or a product directly obtained by using the patented method is sold by the patentee or sold by any organization or individual with licensing from the patentee, any other person uses, offers to sell, sells or imports that product;
(2) Before the date of application, any person has already produced identical products, used identical method or has made necessary preparation for the production or usage and continues to produce or use them within the original scope;
(3) Any foreign means of transportation that temporarily passes through the territory, territorial waters, or territorial airspace of China uses the relevant patent in its devices and installations for its own needs, in accordance with the agreement concluded between that foreign country and china, or in accordance with any international treaty to which both countries have acceded, or on the basis of the principle of reciprocity;
(4) Any person uses the relevant patent specially for the purposes of scientific research and experiment; or
(5) Any person produces, uses, or imports patented drugs or patented medical devices, for the purposes of providing information required for administration examination and approval, or produces, uses, or imports patented drugs or patented medical devices especially for that purpose.
  Article 70     Where an organization or individual, for the purposes of production and business operation, utilizes, offers to sell or sells a patent infringing product without knowing that such a product is produced and sold without licensing from the patentee, they shall 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, an application is filed for patent in a foreign country, thereby divulging the national secret, the employer or the superior competent authority of the violating party shall impose administrative sanctions. If such acts constitute a criminal offense, the violating party shall be subject to criminal liability.
  Article 72     If a person usurps the right to apply for a non-service invention, or usurps any other rights and interests specified in this Law, of an inventor or designer, the violating party shall be subject to administrative sanctions by its employer or the superior competent authority.
  Article 73     The departments of the administration of patent-related work shall not be involved in recommending patented products to the public or engage in any other similar business activities.
If the departments of the administration of patent-related work violate the provisions of the preceding paragraph, the authority at the higher level or the supervisory authority shall order it to make a correction and eliminate the bad effects. If illegal gains are involved, such illegal gains shall be confiscated. If the case is serious, the person directly in charge and other person subject to direct liability shall be imposed administrative sanctions in accordance with the law.
  Article 74     Where the staff members of the authorities for patent administration or other relevant State agencies are derelict in their duties, abuse their power, practice favoritism or commit irregularities and such acts constitute criminal offenses, criminal liabilities shall be imposed. If such acts not yet constitute criminal offenses, administrative sanctions shall be imposed in accordance with the law.
Chapter 8: Supplementary Provisions
  Article 75     To apply for patent or handle other procedures, the relevant fees and charges shall be paid to the Patent Administration Department under the State Council in accordance with the relevant provisions.
  Article 76     This Law shall become effective on April 1, 1985.