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State Council releases rules on external IPR transfers

Updated: Mar 29,2018 5:20 PM

The State Council general office issued a notice on the approval of trial working rules on external transfers of intellectual property rights (IPR).

The rules are made to improve the national security system, protect the public interest, and regulate external transfers of IPR.

The document listed an investigation mechanism that covers external transfers of IPR such as patent rights, exclusive rights to layout designs of integrated circuits, computer software copyrights, and new plant variety rights. These may occur in the process of technology export, and foreign investors’ acquisition of Chinese enterprises.

The external transfer of IPR mentioned in the document means Chinese units or individuals can transfer their domestic IPR to foreign enterprises, individuals or other groups. This includes the transfer of IPR owners, actual IPR controllers, and the exclusive license of IPR.

The influence of external IPR transfers on China’s national security and the core technology innovation in China’s key fields will be investigated, according to the document.

The working rules do not apply to cases involving national defense security.