On October 14, 2022, in order to thoroughly implement the State Council's deployment on "establishing and improving the patent open licensing system and operation mechanism", promote the smooth implementation and efficient operation of the patent open licensing system, guide patentees to scientifically, fairly and reasonably estimate the royalties for patent open license, and promote market-oriented pricing and licensing, the China Intellectual Property Administration (CNIPA) issued the Guidelines for Estimation of Royalties for Patent Open License (Trial Version).
The Guidelines include three parts: general provisions, estimation methods and operational steps, which may be referenced by relevant parties. For example, when patentees are making patent open license declarations and determining the standards and methods for payment of patent open license royalties, when licensees are seeking open licensed patents, or when intellectual property agencies are carrying out services relating to patent open licenses, they may refer to the Guidelines if needed.
Patent open license royalties can be estimated by making reference to the revenues which has been earned from the exploitation of the patent by the patentee itself, the royalties which has been charged for licensing the patent for exploitation, the statistics on the royalties for patent licenses in the same industry, or common worldwide royalty rates, or by using asset-valuation approaches. The Guidelines also describe in detail the operational steps for open licensing of patents.
See the following link for the full text of the Guidelines:
http://www.cnipa.gov.cn/art/2022/10/24/art_75_179776.html
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