The Draft Regulations on Service Inventions were released by the State Intellectual Property Office (SIPO) for public comment on 12 November 2012. Articles 21 and 22 of this Draft increase the statutory minimums to:

  • Reward – for an invention patent or plant variety rights, a total minimum reward of two months' average employee salary; for other IP rights, including utility model patents, the minimum reward will be one month's average employee salary.
  • Remuneration from exploitation – an inventor should receive at least 5% of the employer's operating profit (or 0.5% of sales) made from the exploitation of an invention patent/plant variety rights; for other IP rights, 3% (or 0.3% of sales).
  • Remuneration from assignment or licensing - where the employer assigns or licenses an invention or utility model to another party, the inventor should be remunerated at least 20% of the fees obtained.

The Draft Regulations also introduces a number of reporting requirements on the part of the employer in order for the employee inventors to assess what level of remuneration is due. Details of the reporting obligations are available from our office