China’s Amended Patent Law: Major Amendments on the Way

BEIJING - The Standing Committee of the 13th National People’s Congress of China passed amendments to China’s Patent Law (CPL) on October 17, 2020. The amendments to the law will take effect on June 1, 2021.

China reformed its patent regime to strengthen the protection of Intellectual Property Rights (IPR) and create a better environment for investment in China.

Major amendments to China’s patent law:

Patent Term Compensation: Patent term compensation is available if the grant of a patent is delayed and takes more than 4 years from the date of filing, or 3 years after a request for substantive examination.

Patent Term Extension: The patentees of innovative pharmaceuticals are allowed to apply for a patent term extension of up to 5 years. 

Open License System: Open license system is introduced for the first time in China. The patentee may voluntarily license any entity or individual to exploit his patent.

Patent Infringement: Punitive damages are adopted for intentional infringements of patents. In addition, a fine of not more than 5 times of the amount of illegal earnings shall be imposed.

Design Patents: The term of validity for design patents is increased from10 years to 15 years.