On 12 November 2012, the State Intellectual Property Office (SIPO) released for public comment a draft set of regulations related to employee service inventions.
The draft regulations include some controversial provisions that may significantly increase companies’ compensation costs related to employee service inventions, and may even impact companies’ ability to control how employee-created inventions are used, if the draft regulations are passed in their current form.
Most significantly, the statutory reward and remuneration payable for an employee service invention (in the absence of an agreement or company policies) would be significantly increased above what is currently required under the Patent Law and its implementing regulations.
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