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Interpreting the New Concept and New Regulations of the Service Invention System HE Min

Interpreting the New Concept and New Regulations of the Service Invention System HE Min Intellectual Property School, East China University of Political Science and Law. Interpreting the new concept of the service invention system

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Interpreting the New Concept and New Regulations of the Service Invention System HE Min

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  1. Interpretingthe NewConceptandNewRegulationsoftheServiceInventionSystem HE Min Intellectual PropertySchool,East China University of Political Science and Law

  2. Interpretingthenewconceptoftheserviceinventionsystem • Interpretingthenewregulationsoftheserviceinventionsystem

  3. I.Interpretingthenewconceptoftheserviceinventionsystem Institutionaljusticeoftheserviceinventionsystem: encouragementofinnovation+fairdistribution

  4. Philippe MALAURIE、Laurent AYNES，《DROIT CIVIL ----- LES BIENS》 “Le droit des biens est celui de la richesse. Sans propriété, ni liberté, ni prospérité. Mais dès que la propriété est démesurée, elle dégrade presque fatalement la personne. L’avenir de l’Occident se trouve dans les propriétés intellectuelles et l’immatériel, en perpétuelle évolution. Le droit des biens essaye de trouver la voie de l’écologie et du développement durable, non sans mal ni beaucoup de verbalisme.”

  5. Intellectual PropertyRightsandtheFuture Philippe MALAURIEandLaurent AYNES,renownedFrenchacademicsofcivillaw,revealedonthebackcoverofLesBiens(Property)ofthebookseriesofDroitCivil(CivilLaw): “Propertyrightsarethoseofwealth.Withoutpropertyrights,thereisnofreedomorprosperity.However,ifpropertyrightsaregiventoomuchemphasis,itwillalmostinevitablylowerthevalueofhumanbeings; Fromtheperspectiveofsustainabledevelopment,thefutureoftheWestliesinintellectual propertyrightsandintangiblepropertyrights; Academicsofpropertyrightstrytofindapropertyrightsystemthataccordswiththerulesofsustainable development andthoseofecology.Itisnotthateasy,butnotadaydreamonpapereither.”

  6. II.Interpretingthenewregulationsoftheserviceinventionsystem Fairnessandjusticeoftheserviceinventionsystem: scientific classification + reasonableattribution

  7. Policybackground: 1.Several Opinions of the State Council on Building a Powerful Intellectual Property Nation under New Conditions(No.71[2015]oftheStateCouncil)(18December2015) Theoretical guidance: The reform in thepriority fields of intellectual property rights shall continue to be furthered,the creationand use of intellectual propertyshallbeintensified,mass entrepreneurship and innovation shallbeencouragedandensured,toprovidestrongsupportforthestrategyofinnovation-driven development.

  8. 2. The Further Implementation of the National Intellectual Property Strategy Action Plan (2014- 2020) (10December2014) Theoretical guidance: In implementing the national intellectual property strategy, we shouldabide by the policy of encouraging creation, effective application, legal protection and scientific administrationtoconcentrate our efforts onenhancingtheapplicationandprotectionofintellectual propertyrights.

  9. 3. Promotion Plan for the in-Depth Implementation of the National Intellectual Property Strategy and the Acceleration of the Building of a Powerful Intellectual Property Nation in 2016(24June2016) FirsttaskofthePromotionPlan(99tasks): 1. Strengthen the research of the formulation of the Regulation on Service Inventions

  10. 4.National Outline for Medium- and Long-Term Talent Development (2010-2020)(No.6[2010]ofGeneral Office of the CPC Central Committee)(11June2012) “(II)A new mechanism for talentdevelopment 5. Incentiveandsecuritymechanismfortalent Objective:optimizemechanismsofdistribution,incentive,andsecurity Maintasks:developamechanismofincentiveofownership,andamethodofallocationonthebasisofcontributionoffactorsofproductionincludingknowledge,technologies,management,andskills.Optimizethetalentincentivemechanisminstate-ownedcompanies,promotemedium-andlong-termincentivesincludingstockrightsandoption, andgiveprioritytotalentofentrepreneurship andinnovation.”

  11. Statusquooflegislation: SIPOissuedDraft Regulations on Service Inventions (Draft for Comments) in2009andsolicitedopinionsfromallwalksoflife. Itisstillunderpublicconsultation.

  12. Draft Regulations on Service Inventions (Draft for Comments) Keycontents: I.Provisionon the scope of service inventions; II. Provision on attribution of rights; III. Provisionofconsensustakingprecedence; IV.Provisionsonrewarddistribution; V.Provisiononreportingsystem.

  13. I.Provision on the scope of service inventions: Article 7 Inventions completed under the following circumstances shall be service inventions: (1) Inventions completed by inventors as part of their regular job duties; (2) Inventions completed by inventors by performing tasks, other than their regular job duties, as assigned by their employers; (3) the termination of the Inventions that are completed within one year after changeofjobstatus of the inventors, and that are related to the regular job duties undertaken in, or other tasks assigned by, the original employers; (4) Inventions that are completed by inventors mainly by using the funds, equipment, spare parts, raw materials, or technical materials that are not publicly available, and other material and technical conditions of their employers.

  14. II. Provision on attribution of rights; Article 8 Employers shall have the right to apply for the intellectual property right for the service inventions, or to protect service inventions as technical secrets or make them public, and inventors shall have the right of authorship and the right to obtain rewards and remunerations.

  15. III. Provision of consensus taking precedence; Article9An employer may agree with inventors ontheapplicationofintellectual propertyrights,theprotectionoftechnicalsecrets,and the ownership of the inventions related to the businessof the employer. Where such matters are not agreed with the inventors, the provisions of this Chapter shall prevail.

  16. IV. Provisions on reward distribution:(stillthesystemofbonusplusremuneration) Article21Where an employer has neither agreed with the inventors on rewards for service inventors nor specified rewards for service inventors in the rules and regulations it has formulated in accordance with the law, for service inventions that have obtained invention patent or right of new plant variety, the total amount of bonuses for all inventors shall be not less than twice the average monthly salary of the on-job employees of the employer;for service inventions that have obtained other intellectual property right, the total amount of bonuses for all inventors shall be not less than the average monthly salary of the on-job employees of the employer.

  17. Article22After implementing the patent,anemployershallpay remunerations through any of the following ways: (1)The employer shall, on an annual basis, draw not less than 5%(0.5%) of the business profit(salesrevenue) from the implementation of invention patent;for service inventions that have obtained other intellectual property right,theemployer shalldraw not less than 3%(0.3%) of the business profit(salesrevenue); The cumulative amount of the remunerations shall not exceed 50%of the cumulative business profit from the implementation of intellectual property right. Theemployershall,after transferring or licensing others to implement the intellectual property right, draw not less than 20% of the net income from the transfer or licensing and give it to inventors as remunerations.

  18. V. Provision on reporting system: Article10 Unless otherwise stipulated by the employer or agreed with the employer, an inventor who has completed an invention related to the employer's business shall report such invention to the employer within two months after the invention is completed. Where an invention is completed by two or more inventors, the invention shall be reported to the relevant employer jointly by all inventors.

  19. Institutionalissues: (1)Thescopeofserviceinventionsasprovidedistoobroadanditdoesnotcomplywithobjectivelaws; (2)The“ either-ormodel”istoosimplified,resultinginlimitedrightattribution; (3)Thesingleattributionmodelisunfair,unreasonable,andagainstscientificprinciples; (4)Thesystemof“bonusplusremuneration”anddoesnotmotivateinnovation.

  20. Suggestionstotheprovisionsandsystem: (1)Developanewclassificationsystemofserviceinventions; (2)Formanewattributionsystemofserviceinventions.

  21. (1) Develop a new classification system of service inventions: TaskInvention Service Invention DutyInvention Non-task InventionInvention PostInvention Independent Invention

  22. 1. Taskinventions: • Inventionscompletedbyemployeeswhenfulfilingtasksassignedbyemployersthatclearlyinvolvetechnicalsolutions,technicalmethods,technicalroutes,ortechnologicalprocessesareserviceinventions,or“task-relatedserviceinventions”. • Fortask-relatedserviceinventions,propertyrightsbelongtoemployers,andemployeeshavetherighttoremunerationsandfinancialincentives. 22

  23. 2. Dutyinventions: Whenemployeeshavenotacceptedabove-mentionedinventiontasksorresearchtasksinadvanceandinventionsarecompletedwhenemployeesarefulfillingjobdutiesasstipulatedinemploymentcontracts,theinventionsaredutyinventions,or“non-taskrelatedserviceinventionsfordutypurposes”. Astheinventionsarewithinthescopeofdutiesstipulatedinemploymentcontracts,itcanberegardedthatemployersandemployeeshaveapriortransferconsensusonthepartofthepropertyrightsthatbelongstoemployeeinventors.Thereforeforsuchinventions,propertyrightsbelongtoemployers,butemployersshallpayrelevanttechnical“consideration”toemployeeinventors. 23

  24. 3. Postinventions: • Ifinventionsarenotdirectlywithinthescopeofdutiesasstipulatedinemploymentcontractsbutemployeeinventorshaveused,toalargedegree,thematerialandtechnicalconditionsortechnicaldataandinformationthatisnotyetpublicduringtheinventionprocesses,althoughtheinventionsinvolveneithertasksnorduties,theinventorsbenefitfromthematerialandtechnicalconditionsprovidedtotheirposts,andthustheinventionsshouldstillbewithinthescopeofserviceinventions,or“non-taskrelatedserviceinventionsformaterialreasons”. • Giventhattheinventionsareresultsofbothintellectual andmaterialinvestment,thepropertyrightsshallbelongtobothemployersandemployeesincertainproportion,andtechnicalanddevelopmentrisksshallbebornebybothpartiesaswell. 24

  25. 4. Independentinvention: Alltheotherinventionsare“independentinventions”. Thepropertyrightsofindependentinventionsshallnaturallybelongtoemployeeinventors. 25

  26. (2)Form a new attribution system of service inventions: EmployeesEmployers Taskinventionsbonusandpropertyrights remunerations Dutyinventionstransferpaymentpropertyrights(statutorytransfer) Postinventionssharedownershipsharedownership inproportioninproportion Independent propertyrights inventions

  27. THANK YOU.

  28. HEMinProfessor,doctoral supervisor PhDinLaw,Université de Paris I Professorand doctoral supervisor,Intellectual Property School, East China University of Political Science andLaw Part-timeprofessorandcontractualdoctoralsupervisor,Aix-Marseille Université IPexpertconsultant,ShanghaiMunicipalGovernment VicePresident,China LawAssociation on Science and Technology Arbitrator,ShanghaiandWuahnarbitration committees ChiefExpert,keyprojectsofNational Social Science Fund Tel:021 – 57090082 Mobile:13701688292 E-mail:hemon20022003@aliyun.com

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