Inventor Rights in China

The July 26, 2006 issue of the "China Intellectual Property Law Newsletter" from Lehman, Lee, & Xu provides the following summary of China's requirements for reasonable compensation of inventors:

An employee who invents while in the employment of a company enjoys the following rights:

• 'Award' after completion of the invention;
• 'Reasonable remuneration' based on the 'exploitation and application' and
  'economic benefits';
• Right to be named as inventor; and
• First right of refusal for transfer of patent ownership, on equal terms
  offered to others.

Since there is very little Chinese guidance on these requirements, the authors suggest that international employers use principles similar to those they apply under Japan's corresponding Article 35 of the Patent Law.

The newsletter also discusses the March 1, 2006 requirements for trade exhibitions to set up Complaint Review Panels (CRP) on the floor of the show for resolving intellectual property infringement disputes. However, the punishments for infringing at a trade show are probably not sufficiently intimidating to have much effect:

if an exhibitor at the show is reported more than twice, the show sponsor
must deny that exhibitor from taking part in the next exhibition. However, the
law primarily refers to existing patent and copyright laws for punishments for
IPR infringement.