Partners Jerry Xia and Simon Du, along with senior associate Iris Li, recently authored the Guide on Inventor Remuneration (China) for Thomson Reuters' Practical Law. This guide can be accessed at: https://content.next.westlaw.com/w-033-6186 or a PDF copy can be requested by emailing to [liyuxuan@genlaw.com].

Inventor award and remuneration is mandatory under Chinese law. It is imperative for each company doing R&D in China to make sure that they put a well-designed company policy and/or employee agreement in place to prevent the extremely high statutory standards from applying to their company (i.e., 5%+ of the patented product’s profits or 50%+ of any royalties or transfer price).

This comprehensive overview systematically explains the legal framework and latest compliance requirements governing inventor remuneration for service inventions in China. The Guide equips businesses and legal professionals to accurately understand employer obligations, identify risk mitigation strategies, enhance innovation incentive mechanisms, and achieve continuous improvement in compliance management.

Inventor Remuneration (China) provides a detailed analysis of relevant laws, regulations, and practical implementation concerning inventor rewards in China. It outlines key legal foundations, details specific remuneration components, and clarifies core issues such as eligibility criteria, calculation standards, and dispute resolution. The Guide also offers practical recommendations for businesses to effectively prevent and resolve related legal risks.

Please also refer to a previous article GEN Law team published on Lexology regarding “Revised Chinese Statutory Standards for Inventor Awards and Remunerations Effective from January 2024” (https://www.lexology.com/library/detail.aspx?g=b81ea7ca-3e7f-4652-8d34-93a3a0f78624).

Note: Reprinted from Practical Law with permission. For more information, visit:
https://uk.practicallaw.thomsonreuters.com or please contact Jerry Xia of GEN Law: jerryxia@genlaw.com