TABLE OF CONTENTS
                  
                  
 Chapter 
                      I: General Provisions 
                    Chapter 
                      II: Requirements for Grant of Patent 
                    Chapter 
                      III : Application for Patent 
                    Chapter 
                      IV: Examination and Approval of Application for Patent 
                    Chapter 
                      V : Duration, Cessation and Invalidation of Patent Right 
                    Chapter 
                      VI: Compulsory License for Exploitation of Patent 
                    Chapter 
                      VII: Protection of Patent Right 
                    Chapter 
                      VIII: Supplementary Provisions
                       Chapter 
                        I  General Provisions 
                    Article 1   This Law is enacted to protect patent rights for 
                      inventions-creations, to encourage invention-creation,  to foster the 
                      spreading and application of inventions-creations, and to promote the 
                      development and innovation of science and technology, for meeting the 
                      needs of the construction of socialist modernization. 
                    Article 2   In this Law, "inventions-creations" 
                       mean   inventions, utility models and designs. 
                    Article 3   The patent administration department under 
                      the State Council  is responsible for the patent work throughout the 
                      country. It receives and examines patent applications and grants patent 
                      rights for inventions-creations in accordance with 
                      law. 
                            The administrative authority for 
                      patent affairs under  the people's governments of provinces, 
                      autonomous regions and municipalities directly under the Central 
                      Government are responsible for the administrative work concerning patents 
                      in their respective administrative areas . 
                    Article 4   Where an invention-creation for which a 
                      patent is applied for relates to the security or other vital interests of 
                      the State and is required to be kept secret, the application shall be 
                      treated in accordance with the relevant prescriptions of the State. 
                    Article 5   No patent right shall be granted for any 
                      invention-creation that is contrary to the laws of the State or social 
                      morality or that is detrimental to public interest. 
                    Article 6   An invention-creation, made by a person in 
                      execution of the tasks of the entity to which he belongs, or made by him 
                      mainly by using the material and technical means of the entity is a 
                      service invention-creation. For a service intention-creation, the right to 
                      apply for a patent belongs to the entity. After the application is 
                      approved, the entity shall be the 
                      patentee. 
                            For a non-service 
                      invention-creation, the right to apply for a patent belongs to the 
                      inventor or creator. After the application is approved, the inventor or 
                      creator shall be the patentee. 
                            In 
                      respect of an invention-creation made by a person using the material and 
                      technical means of an entity to which he belongs, where the entity and the 
                      inventor or creator have entered into a contract  in which the right 
                      to apply for and own a patent is provided for, such a provision shall 
                      apply. 
                    Article 7.  No entity or individual shall prevent the inventor or 
                      creator from filing an application for a patent for a non-service 
                      invention-creation. 
                    Article 8.  For an invention-creation jointly made by two or more 
                      entities or individuals, or made by an entity or individual in execution 
                      of a commission given to it or him by another entity or individual, the 
                      right to apply for a patent belongs, unless otherwise agreed upon, to the 
                      entity or individual that made, or to the entities or individuals that 
                      jointly made, the invention-creation. After the application is approved, 
                      the entity or individual that applied for it shall be the patentee. 
                    Article 9.  Where two or more applicants file applications 
                      for patent for the identical invention-creation, the patent right shall be 
                      granted to the applicant whose application was filed first. 
                    Article 10.  The right to apply for a patent and the patent right 
                      may be assigned. 
                            Any assignment, by a 
                      Chinese entity or individual, of the right to apply for a patent, or of 
                      the patent right, to a foreigner must be approved by the competent 
                      department concerned of the State 
                      Council. 
                            Where the right to apply for a 
                      patent or the patent right is assigned, the parties shall conclude a 
                      written contract and register it with the patent administration department 
                      under the State Council.  The patent administration department under 
                      the State Council  shall announce the registration. The assignment 
                      shall take effect as of the date of registration. 
                    Article 11  After the grant of the patent right for an invention 
                      or utility model, except where otherwise provided for in this Law, no 
                      entity or individual may, without the authorization of the patentee, 
                      exploit the patent, that is, make, use, offer to sell, sell or import the 
                      patented product, or use the patented process, and use, offer to sell, 
                      sell or import the product directly obtained by the patented process, for 
                      production or business purposes. 
                            After 
                      the grant of the patent right for a design, no entity or individual may, 
                      without the authorization of the patentee, exploit the patent, that is, 
                      make, sell or import the product incorporating its or his patented design, 
                      for production or business purposes. 
                    Article 12.  Any entity or individua1 exploiting the patent of 
                      another shall conclude with the patentee a written license contract for 
                      exploitation and pay the patentee a fee for the exploitation of the 
                      patent. The licensee has no right to authorize any entity or individual, 
                      other than that referred to in the contract for exploitation, to exploit 
                      the patent. 
                    Article 13.  After the publication of the application for a patent 
                      for invention, the applicant may require the entity or individual 
                      exploiting the invention to pay an appropriate fee. 
                    Article 14.  Where any patent for invention, belonging to any 
                      State-owned enterprise or institution, is of great significance to the 
                      interest  of the State or to the public interest, the competent 
                      departments concerned under the State council and the people's governments 
                      of provinces, autonomous regions or municipalities directly under the 
                      Central Government may, after approval by the State Council, decide that 
                      the patented invention be spread and applied within the approved  
                      limits, and allow designated entities to exploit that invention. The 
                      exploiting entity shall, according to the regulations of the State, pay a 
                      fee for exploitation to the patentee . 
                            
                      Any patent for invention belonging to a Chinese individual or an entity 
                      under collective ownership, which is of great significance to the interest 
                      of the State or to the public interest and is in need of spreading and 
                      application, may be treated alike by making reference to the provisions of 
                      the preceding paragraph. 
                    Article l5.  The patentee has the right to affix a patent 
                      marking and to indicate the number of the patent on the patented product 
                      or on the packing of that product. 
                    Article 16.  The entity that is granted a patent right shall award 
                      to the inventor or creator of a service invention--creation a reward and, 
                      upon exploitation of the patented invention-creation, shall pay the 
                      inventor or creator a reasonable remuneration based on the extent of 
                      spreading and application and the economic benefits yielded. 
                    Article l7.  The inventor or creator has the right to be named as 
                      such in the patent document. 
                    Article 18.  Where any foreigner, foreign enterprise or other 
                      foreign organization having no habitual residence or business office in 
                      China files an application for a patent in China, the application sha1l be 
                      treated under this Law in accordance with any agreement concluded between 
                      the country to which the applicant belongs and China, or in accordance 
                      with any international treaty to which both countries are party, or on the 
                      basis of the principle of reciprocity. 
                    Article l9.  Where any foreigner, foreign enterprise or other 
                      foreign organization having no habitual residence or business office in 
                      China applies for a patent, or has other patent matters to attend to, in 
                      China, it or he shall appoint a patent agency designated by  the 
                      patent administration department under the State Council  to act as 
                      his or its agent. 
                            Where any Chinese 
                      entity or individual applies for a patent or has other patent matters to 
                      attend to in the country, it or he may appoint a patent agency to act as 
                      its or his agent. 
                            The patent agency 
                      shall comply with the provisions of laws and administrative regulations, 
                      and handle patent applications and other patent matters according to the 
                      instructions of its clients. In respect of the contents of its clients' 
                      inventions-creations, except for those that have been published or 
                      announced, the agency shall bear the responsibility of keeping them 
                      confidential. The administrative regulations governing the patent agency 
                      shall be formulated by the State Council. 
                    Article 20.  Where any Chinese entity or individual intends to 
                      file an application in a foreign country for a patent for 
                      invention-creation made in China, it or he shall file first an application 
                      for patent with the patent administration department under the State 
                      Council, appoint a patent agency designated by the said department  
                      to act as its or his agent, and comply with the provisions of Article 4 of 
                      this Law. 
                            Any Chinese entity or 
                      individual may file an international application for patent in accordance 
                      with any international treaty concerned to which China is party. The 
                      applicant filing an international application for patent shall comply with 
                      the provisions of the preceding 
                      paragraph. 
                            The patent administration 
                      department under the State Council shall handle any international 
                      application for patent in accordance with the international treaty 
                      concerned to which China is party, this Law and the relevant regulations 
                      of the State Council. 
                    Article 21. The patent administration department under the State 
                      Council and its Patent Reexamination Board shall handle any patent 
                      application and patent-related request according to law and in conformity 
                      with the requirements for being objective, fair, correct and 
                      timely. 
                            Until the publication or 
                      announcement of the application for a patent, staff members of the patent 
                      administration department under the State Council and other persons 
                      involved have the duty to keep its contents secret. 
                    Chapter II  
                      Requirements for Grant of Patent Right 
                    Article 22.  Any invention or utility model for which patent right 
                      may be granted must possess novelty, inventiveness and practical 
                      app1icability. 
                            Novelty means that, 
                      before the date of filing, no identical invention or utility model has 
                      been publicly disclosed in publications in the country or abroad or has 
                      been publicly used or made known to the public by any other means in the 
                      country, nor has any other person filed previously with the Patent 
                      Administration Department Under the State Council  an application 
                      which described the identical invention or utility mode1 and was published 
                      after the said date of filing. 
                            
                      Inventiveness means that, as compared with the technology existing before 
                      the date of filing, the invention has prominent substantive features and 
                      represents a notable progress and that the utility model has substantive 
                      features and represents progress. 
                            
                      Practical applicability means that the invention or utility model can be 
                      made or used and can produce effective 
                      results. 
                          
                      Article 23.  Any design for which 
                      patent right may be granted must not be identical with and simi1ar to any 
                      design which, before the date of filing, has been publicly disclosed in 
                      publications in the country or abroad or has been publicly used in the 
                      country, and must not be in conflict with any prior right of any other 
                      person. 
                    Article 24.  An invention-creation for which a patent is applied 
                      for does not lose its novelty where, within six months before the date of 
                      filing, one of the following events 
                      occurred: 
                            (l) where it was first 
                      exhibited at an international exhibition sponsored or recognized by the 
                      Chinese Government; 
                            (2) where it was 
                      first made public at a prescribed academic or technological 
                      meeting; 
                            (3) where it was disc1osed by 
                      any person without the consent of the applicant. 
                    Article 25  For any of the following, no patent right shall be 
                      granted: 
                            (1) scientific 
                      discoveries; 
                            (2) rules and methods for 
                      mental activities; 
                            (3) methods for the 
                      diagnosis or for the treatment of 
                      diseases; 
                            (4) animal and plant 
                      varieties; 
                            (5) substances obtained by 
                      means of nuclear transformation. 
                            For 
                      processes used in producing products referred to in items (4) of the 
                      preceding paragraph, patent right may be granted in accordance with the 
                      provisions of this Law. 
                    Chapter III  Application 
                      for Patent 
                    Article 26. Where an application for a patent for invention or utility 
                      model is filed, a request, a description and its abstract, and claims 
                      shall be submitted. 
                             The request 
                      shall state the title of the invention or utility model, the name of the 
                      inventor or creator, the name and the address of the applicant and other 
                      related matters. 
                             The description 
                      shall set forth the invention or utility model in a manner sufficiently 
                      clear and complete so as to enable a person skilled in the re1evant field 
                      of techno1ogy to carry it out; where necessary, drawings are required. The 
                      abstract shall state briefly the main technical points of the invention or 
                      utility model. 
                            The claims sha1l be 
                      supported by the description and shal1 state the extent of the patent 
                      protection asked for. 
                    Article 27.  Where an app1ication for a patent for design is 
                      filed, a request, drawings or photographs of the design shall be 
                      submitted, and the product incorporating the design and the class to which 
                      that product be1ongs shall be indicated. 
                    Article 28.  The date on which the Patent Administration 
                      Department Under the State Council receives the application shall be the 
                      date of filing. If the app1ication is sent by mail, the date of mailing 
                      indicated by the postmark shall be the date of filing. 
                    Article 29.  Where , within twelve months from the date on which 
                      any applicant first filed in a foreign country an application for a Patent 
                      for invention or utility model, or within six months from the date on 
                      which any applicant first filed in a foreign country an application for a 
                      patent for design, he or it files in China an application for a patent for 
                      the same subject matter, he or it may, in accordance with any agreement 
                      concluded between the said foreign country and China, or in accordance 
                      with any international treaty to which both countries are party, or on the 
                      basis of the principle of mutual recognition of the right of priority, 
                      enjoy a right of priority. 
                            Where, within 
                      twelve months from the date on which any applicant first filed in China an 
                      application for a patent for invention or utility model, he or it files 
                      with the Patent Administration Department Under the State Council  an 
                      application for a patent for the same subject matter , he or it may enjoy 
                      a right of priority. 
                    Article 30.  Any applicant who claims the right of priority shall 
                      make a written declaration when the application is filed, and submit, 
                      within three months, a copy of the patent application document which was 
                      first filed ; if the applicant fails to make the written declaration or to 
                      meet the time limit for submitting the patent application document, the 
                      claim to the right of priority shall be deemed not to have been made. 
                    Article 3l.   An application for a patent for invention or 
                      utility model shall be limited to one invention or uti1ity model. Two or 
                      more inventions or utility models belonging to a single general inventive 
                      concept may be filed as one application. 
                            
                      An application for a patent for design shall be limited to one design 
                      incorporated in one product. Two or more designs which are incorporated in 
                      products belonging to the same c1ass and are sold or used in sets may be 
                      filed as one application. 
                    Article 32.  An applicant may withdraw his or its application 
                      for a patent at any time before the patent right is granted. 
                    Article 33. An applicant may amend his or its application for a patent, 
                      but the amendment to the application for a patent for invention or utility 
                      model may not go beyond the scope of the disclosure contained in the 
                      initial description and claims, and the amendment to the application for a 
                      patent for design may not go beyond the scope of the disclosure as shown 
                      in the initial drawings or photographs. 
                    Chapter 
                      IV  Examination and Approval of Application for 
                      Patent 
                    Article 34.  Where, after receiving an application for a patent 
                      for invention, the Patent Administration Department Under the State 
                      Council, upon preliminary examination, finds the application to be in 
                      conformity with the requirements of this Law, it shall publish the 
                      application promptly after the expiration of eighteen months from the date 
                      of filing. Upon the request of the applicant, the Patent Administration 
                      Department Under the State Council  publishes the application 
                      earlier. 
                    Article 35.  Upon the request of the applicant for a patent 
                      for invention, made at any time within three years from the date of 
                      filing, the Patent Administration Department Under the State Council  
                      will proceed to examine the application as to its substance. If, without 
                      any justified reason, the applicant fails to meet the time limit for 
                      requesting examination as to substance, the application shall be deemed to 
                      have been withdrawn. 
                            The Patent 
                      Administration Department Under the State Council  may, on its own 
                      initiative, proceed to examine any application for a patent for invention 
                      as to its substance when it deems it necessary. 
                    Article 36. When the applicant for a patent for invention requests 
                      examination as to substance , he or lit shall furnish pre-filing date 
                      reference materials concerning the 
                      invention. 
                            For an application for a 
                      patent for invention that has been already filed in a foreign country, the 
                      patent administration department under the State Council  may ask the 
                      app1icant to furnish within a specified time limit documents concerning 
                      any search made for the purpose of examining that application, or 
                      concerning the results of any examination made, in that country. If, at 
                      the expiration of the specified time limit, without any justified reason, 
                      the said documents are not furnished, the application shall be deemed to 
                      have been withdrawn. 
                    Article 37. Where the Patent Administration Department Under the State 
                      Council , after it has made the examination as to substance of the 
                      application for a patent for invention, finds that the application is not 
                      in conformity with the provisions of this Law, it shall notify the 
                      applicant and request him or it to submit, within a specified time limit, 
                      his or its observations or to amend the application. If, without any 
                      justified reason, the time limit for making response is not met, the 
                      application shall be deemed to have been withdrawn. 
                    Article 38.   Where, after the applicant has made the 
                      observations or amendments, the Patent Administration Department Under the 
                      State Council  finds that the application for a patent for invention 
                      is still not in conformity with the provisions of this Law, the 
                      application shall be rejected. 
                    Article 39.  Where it is found after examination as to substance 
                      that there is no cause for rejection of the application for a patent for 
                      invention, the patent administration department under the State 
                      Council  shall make a decision to grant the patent right for 
                      invention, issue the certificate of patent for invention, and register and 
                      announce it. The patent right for invention shall take effect as of the 
                      date of the announcement. 
                    Article 40.  Where it is found after preliminary examination 
                      that there is no cause for rejection of the application for a patent for 
                      utility model or design, the patent administration department under the 
                      State Council shall make a decision to grant the patent right for utility 
                      model or the patent right for design, issue the relevant patent 
                      certificate, and register and announce it. The patent right for utility 
                      model or design shall take effect as of the date of the announcement. 
                    Article 41.  The patent administration department under the State 
                      Council  shall set up a Patent Reexamination Board. Where an 
                      applicant for patent is not satisfied with the decision of  the said 
                      department  rejecting the application,  the applicant may, 
                      within three months from the date of receipt of the notification, request 
                      the Patent Reexamination Board to make a reexamination. The Patent 
                      Reexamination Board shall, after reexamination, make a decision and notify 
                      the applicant for patent. 
                            Where the 
                      applicant for patent  is not satisfied with the decision of the 
                      Patent Reexamination Board, it or he may, within three months from the 
                      date of receipt of the notification, institute legal proceedings in the 
                      people's court. 
                    Chapter 
                      V   Duration, Cessation and Invalidation of Patent 
                      Right 
                    Article 42.  The duration of patent right for inventions 
                      shall be twenty years, the duration of patent right for utility models and 
                      patent right for designs shall be ten years, counted from the date of 
                      filing. 
                    Article 43.  The patentee shall pay an annual fee beginning 
                      with the year in which the patent right was granted. 
                    Article 44.   In any of the following cases, the patent right 
                      shall cease before the expiration of its 
                      duration: 
                            (1) where an annual fee is not 
                      paid as prescribed; 
                            (2) where the 
                      patentee abandons his or its patent right by a written 
                      declaration. 
                            Any cessation of the patent 
                      right shall be registered and announced by the Patent Administration 
                      Department Under the State Council . 
                    Article 45.  Where, starting from the date of the announcement of 
                      the grant of the patent right by the patent administration department 
                      under the State Council, any entity or individual considers that the grant 
                      of the said patent right is not in conformity with the relevant provisions 
                      of this Law, it or he may request the Patent Reexamination Board to 
                      declare the patent right invalid. 
                    Article 46. The Patent Reexamination Board shall examine the request 
                      for invalidation of the patent right  promptly, make a decision on it 
                      and notify the person who made the request and the patentee. The decision 
                      declaring the patent right invalid shall be registered and announced by 
                      the patent administration department under the State 
                      Council. 
                            Where the patentee or the 
                      person who made the request for invalidation is not satisfied with the 
                      decision of the Patent Reexamination Board declaring the patent right 
                      invalid or upholding the patent right, such party may, within three months 
                      from receipt of the notification of the decision, institute legal 
                      proceedings in the people's court. The people's court shall notify the 
                      person that is the opponent party of that party in the invalidation 
                      procedure to appear as a third party in the legal 
                      proceedings. 
                         
                      Article 47.  Any patent right 
                      which 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 judgement 
                      or ruling of patent infringement which has been pronounced and enforced by 
                      the people's court, on any decision concerning the handling of a dispute 
                      over patent infringement which has been complied with or compulsorily 
                      executed, or  on any contract of patent license or of assignment of 
                      patent right which has been performed  prior to the declaration of 
                      the patent right invalid; however, the damage caused to other persons in 
                      bad faith on the part of the patentee shall be 
                      compensated. 
                            If, pursuant to the 
                      provisions of the preceding paragraph, the patentee or the assignor of the 
                      patent right makes no repayment to the licensee or the assignee of the 
                      patent right of the fee for the exploitation of the patent or of the price 
                      for the assignment of the patent right, which is obviously contrary to the 
                      principle of equity, the patentee or the assignor of the patent right 
                      shall repay the whole or part of the fee for the exploitation of the 
                      patent or of the price for the assignment of the patent right to the 
                      licensee or the assignee of the patent right. 
                    Chapter 
                      VI  Compulsory License for Exploitation of Patent 
                    Article 48.  Where any entity which is qualified to exploit the 
                      invention or utility model has made requests for authorization from the 
                      patentee of an invention or utility model to exploit its or his patent on 
                      reasonable terms and conditions and such efforts have not been successful 
                      within a reasonable period of time, the Patent Administration Department 
                      Under the State Council   may, upon the request of that entity, 
                      grant a compulsory license to exploit the patent for invention or utility 
                      model. 
                    Article 49.   Where a national emergency or any extraordinary 
                      state of affairs occurs, or where the public interest so requires, the 
                      Patent Administration Department Under the State Council  may grant a 
                      compulsory license to exploit the patent for invention or utility 
                      model. 
                    Article 50.   Where the invention or utility model for which 
                      the patent right has been granted involves important technical advance of 
                      considerable economic  significance in relation to another invention 
                      or utility model for which a patent right has been granted earlier and the 
                      exploitation of the later invention or utility model depends on the 
                      exploitation of the earlier invention or utility model, the patent 
                      administration department under the State Council  may, upon the 
                      request of the later patentee, grant a compulsory license to exploit the 
                      earlier invention or utility model. 
                            
                      Where, according to the preceding paragraph, a compulsory license is 
                      granted, the Patent Administration Department Under the State 
                      Council  may, upon the request of the earlier patentee, also grant a 
                      compulsory license to exploit the later invention or utility model. 
                    Article 51.   The entity or individual requesting, in 
                      accordance with the provisions of this Law, a compulsory license for 
                      exploitation shall furnish proof that it or he has not been able to 
                      conclude with the patentee a license contract for exploitation on 
                      reasonable terms and conditions. 
                    Article 52.  The decision made by the patent administration 
                      department under the State Council  granting a compulsory license for 
                      exploitation shall be notified promptly to the patentee concerned, and 
                      shall be registered and announced. 
                            In 
                      the decision granting the  compulsory license for exploitation, the 
                      scope and duration of the exploitation shall be specified on the basis of 
                      the reasons justifying the grant. If and when the circumstances  
                      which led to such compulsory license cease to exist and are unlikely to 
                      recur, the patent administration department under the State Council  
                      may, after review upon the request of the patentee, terminate the 
                      compulsory license.  
                    Article 53.   Any entity or individual that is granted a 
                      compulsory license for exploitation shall not have an exclusive right to 
                      exploit and shall not have the right to authorize exploitation by any 
                      others. 
                    Article 54.   The entity or individual that is granted a 
                      compulsory license for exploitation shall pay to the patentee a reasonable 
                      exploitation fee, the amount of which shall be fixed by both parties in 
                      consultations. Where the parties fail to reach an agreement, the Patent 
                      Administration Department Under the State Council  shall 
                      adjudicate. 
                    Article 55.  Where the patentee is not satisfied with the decision 
                      of  the patent administration department  under the State 
                      Council  granting a compulsory license for exploitation, or where the 
                      patentee or the entity or individual that is granted the compulsory 
                      license for exploitation is not satisfied with the ruling made by the 
                      patent administration department under the State Council  regarding 
                      the fee payable for exploitation, it or he may,  within three months 
                      from the receipt of the date of notification, institute legal proceedings 
                      in the people's court. 
                    Chapter VII  
                      Protection of Patent Right 
                    Article 56.   The extent of protection of the patent right 
                      for invention or utility model shall be determined by the terms of the 
                      claims. The description and the appended drawings may be used to interpret 
                      the claims. 
                            The extent of protection of 
                      the patent right for design shall be determined by the product 
                      incorporating the patented design as shown in the drawings or 
                      photographs. 
                    Article 57.   Where a dispute arises as a result of the 
                      exploitation of a patent  without the authorization of the patentee, 
                      that is, the infringement of  the patent right of the patentee, it 
                      shall be settled through consultation by the parties. Where the parties 
                      are not willing to consult with each other or where the consultation 
                      fails, the patentee or any interested party may institute legal 
                      proceedings in the people's court, or request the administrative authority 
                      for patent affairs to handle the matter. When the administrative authority 
                      for patent affairs handling the matter considers that the infringement is 
                      established, it may order the infringer to stop the infringing act 
                      immediately. If the infringer is not satisfied with the order, he may, 
                      within 15 days from the date of receipt of the notification of the order, 
                      institutes legal proceedings in the people's court in accordance with the 
                      Administrative Procedure Law of the People's Republic of China. If, within 
                      the said time limit, such proceedings are not instituted and the order is 
                      not complied with, the administrative authority for patent affairs may 
                      approach the people's court for compulsory execution. The said authority 
                      handling the matter may, upon the request of the parties, mediate in the 
                      amount of compensation for the damage caused by the infringement of the 
                      patent right.  If the mediation fails, the parties may institute 
                      legal proceedings in the people's court in accordance with the Civil 
                      Procedure Law of the People's Republic of 
                      China. 
                            Where any infringement dispute 
                      relates to a patent for invention for a process for the manufacture of a 
                      new product, any entity or individual manufacturing the identical product 
                      shall furnish proof to show that the process used in the manufacture of 
                      its or his product is different from the patented process. Where the 
                      infringement relates to a patent for utility model, the people's court or 
                      the administrative authority for patent affairs may ask the patentee to 
                      furnish a search report made by the patent administration department under 
                      the State Council. 
                    Article 58.  Where any person passes off the patent of another 
                      person as his own, he shall, in addition to bearing his civil liability 
                      according to law, be ordered by the administrative authority for patent 
                      affairs to amend his act, and the order shall be announced. His illegal 
                      earnings shall be confiscated and , in addition, he may be imposed a fine 
                      of not more than three times his illegal earnings and, if there is no 
                      illegal earnings, a fine of not more than RMB 50,000 yuan. Where the 
                      infringement constitutes a crime, he shall be prosecuted for his criminal 
                      liability. 
                    Article 59.  Where any person passes any non-patented product off 
                      as patented product or passes any non-patented process off as patented 
                      process, he shall be ordered by the administrative authority for patent 
                      affairs to amend his act , and the order shall be announced, and he may be 
                      imposed a fine of  no more than RMB 50,000 yuan. 
                    Article 60.  The amount of compensation for the damage caused by 
                      the infringement of the patent right  shall be assessed on the basis 
                      of the losses suffered by the patentee or the profits which the infringer 
                      has earned through the infringement. If it is difficult to determine the 
                      losses which the patentee has suffered or the profits which the infringer 
                      has earned, the amount may be assessed by reference to the appropriate 
                      multiple of the amount of the exploitation fee of that patent under 
                      contractual license.  
                    Article 61.  Where any patentee or interested party has evidence 
                      to prove that another person is infringing or will soon infringe its or 
                      his patent right and that if such infringing act is not checked or 
                      prevented from occurring in time, it is likely to cause irreparable harm 
                      to it or him, it or he may, before any legal proceedings are instituted, 
                      request the people's court to adopt measures for ordering the suspension 
                      of  relevant acts and the preservation of property. 
                      The people's 
                      court, when dealing with the request mentioned in the preceding paragraph, 
                      shall apply the provisions of Article 93 through Article 96 and of Article 
                      99 of the Civil Procedure Law of the People's Republic of China 
                    Article 62. Prescription for instituting legal proceedings concerning 
                      the infringement of patent right is two years counted from the date on 
                      which the patentee or any interested party obtains or should have obtained 
                      knowledge of the infringing act. 
                            Where 
                      no appropriate fee for exploitation of  the invention, subject of an 
                      application for patent for invention, is paid during the period from the 
                      publication of the application to the grant of patent  right, 
                      prescription for instituting legal proceedings by the patentee to demand 
                      the said fee is two years counted from the date on which the patentee 
                      obtains or should have obtained  knowledge of the exploitation of his 
                      invention by another person. However, where the patentee has already 
                      obtained or should have obtained knowledge before the date of the grant of 
                      the patent right, the prescription shall be counted from the date of the 
                      grant. 
                           
                      Article 63.   None of the 
                      following shall be deemed an infringement of the patent 
                      right: 
                            (l) Where, after the sale of a 
                      patented product that was made or  imported by the patentee or with 
                      the authorization of the patentee, or of a product that was directly 
                      obtained by using the patented process, any other person uses, offers to 
                      sell or sells that product; 
                            (2) Where, 
                      before the date of filing of the application for patent, any person who 
                      has already made the identical product, used the identical process, or 
                      made necessary preparations for its making or using, continues to make or 
                      use it within the original scope only; 
                            
                      (3) Where any foreign means of transport which temporarily passes through 
                      the territory, territorial waters or territorial airspace of China uses 
                      the patent concerned, in accordance with any agreement concluded between 
                      the country to which the foreign means of transport belongs and China, or 
                      in accordance with any international treaty to which both countries are 
                      party, or on the basis of the principle of reciprocity, for its own needs, 
                      in its devices and installations; 
                            (4) 
                      Where any person uses the patent concerned solely for the purposes of 
                      scientific research and experimentation. 
                            
                      Any person who, for production and business purposes, uses or sells a 
                      patented product or a product that was directly obtained by using a 
                      patented process, without knowing that it was made and sold without the 
                      authorization of the patentee, shall not be liable to compensate for the 
                      damage of the patentee if he can  prove that he obtains the product 
                      from a legitimate source. 
                    Article 64. Where any person, in violation of the provisions of Article 
                      20 of this Law, files in a foreign country an application for a patent 
                      that divulges an important secret of the State, he shall be subject to 
                      disciplinary sanction by the entity to which he belongs or by the 
                      competent authority concerned at the higher level. Where a crime is 
                      established, the person concerned shall be prosecuted for his criminal 
                      liability according to the law. 
                    Article 65.   Where any person usurps the right of an 
                      inventor or creator to apply for a patent for a non-service 
                      invention-creation, or usurps any other right or interest of an inventor 
                      or creator, prescribed by this Law, he shall be subject to disciplinary 
                      sanction by the entity to which he belongs or by the competent authority 
                      at the higher level. 
                    Article 66.  The administrative authority for patent affairs may 
                      not take part in recommending any patented product for sale to the public 
                      or any such  commercial activities. 
                            
                      Where the administrative authority for patent affairs violates the 
                      provisions of the preceding paragraph, it shall be ordered by the 
                      authority at the next higher level or the supervisory authority to correct 
                      its mistakes and eliminate the bad effects. The illegal earnings, if any, 
                      shall be confiscated. Where the circumstances are serious, the persons who 
                      are directly in charge and the other persons who are directly responsible 
                      shall be given disciplinary sanction in accordance with  
                      law.     
                        
                      Article 67.   Where 
                      any State functionary working for patent administration or  any other 
                      State functionary concerned neglects his duty, abuses his power, or 
                      engages in malpractice for personal gain, which constitutes a crime, shall 
                      be prosecuted for his criminal liability in accordance with law. If the 
                      case is not serious enough to constitute a crime, he shall be given  
                      disciplinary sanction in accordance with law. 
                     
                        Chapter VIII  
                           Supplementary Provisions 
                    Article 68.   Any application for a patent filed 
                      with, and any other proceedings before, the Patent Administration 
                      Department Under the State Council  shall be subject to the payment 
                      of a fee as prescribed. 
                    Article 69.    This Law shall enter into force on April 
                      l, 1985. 
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