Selling Patents
  1. "Selling patents" of the platform means patent transfer by way of patent assignment, patent license and patent license security.

  2. Patent assignment means patentee assigns all the economic rights of a patent to the assignee. Patent assignment dose not transfer the spiritual right of the inventors of the patent.

  3. After assignment, the assignor should go through the formalities of change of patentee's title with State Intellectual Property Office(SIPO). Without the change, the assignee can not enforce the patent in its name.

  4. Patent license means patent transfer that the patent signs an assignment with license to authorize it the right to use the patent by way of either patent sole and exclusive license, patent exclusive or ordinary license.

  5. Sole and exclusive license means a patentee authorize a license to implement patent alone, even the patentee will not use the patent.

  6. Exclusive license means the patentee only gives one license, no other ones except the patentee can use the patent.

  7. Ordinary license means the patentee grants as many of license as he wishes.

  8. The platform creates a new type of license, naming patent license security. Patent license security is a certificate of authorization of the buyer to legally use relevant patent or patents to manufacture certain amount of a patented product. A security contains one or more than one patents and corresponds certain numbers of a patented product. For instance, one security convers a group of patents relating to certain model of car, corresponds to 100cars. A car maker can buy certain numbers of the security in accordance with its order quantity for its manufaction.

    It is convenient, quick economical to use patent license security to aquire license. It saves the troubles of licensing necociation, drafting license contracts, signing the contract. As a result, the trade cost is substantially lowered.

    The licensee has less financial risk to use patent license security. The license may buy the security after it gets an order. In a traditional method of license, the license should usually pay down payment or a lump sum payment before it starts to use the patent.

    The patent license security, though possibly being used in nearly all the license circumstances, suits well the license for the fact that the patented product is already in the market.

    The patent license security is suitable for a license of a package of patents.

    The patent license security is suitable for cross license. The traditional cross license may not always be fair. For example, party A has more relevant patents or party A's relevant patents are more foundamental, while patent B has less patents and patent B's patents are less important. Cross license on a free basic may not be fairly belance. By cross buying the other party's patent license security, the price margin may belance the transaction.

    The patent license security may possibly serve as a "indulgence". In a patent infringement dispute, the patentee may forgive the accused party if it buys the patent license security.

  9. According to the rule of the platform, the assigned patent and patent license security can be resold on the platform. The license rights, under the permission of the patentee, can also be resold on the platform.

  10. The patent assignment, patent license and patent license security should be understood as transfer of a patent legal right, not extending to technology transfer. If the selling party intends to assign or license a patent together with technology transfer, it should particularly manifest, and, according to technology transfer provide technology documents and technology traning.

  11. The sole and exclusive license should be unserstood that the licensee has sub-license right.

    The exclusive licensee has sub-license right only when the patentee permits.

    The ordinary license does not have sub-license right.