How much is the patent license fee?
There is no unified standard for patent license fees. It is generally determined by both parties in the implementation license contract. Determined through negotiation.
How to calculate the patent license fee?
Patent royalty refers to the payment of patent license fees by others other than the patentee. A certain amount of royalties paid to the patentee when using a patent. The amount is negotiated between the two parties in the implementation license contract, and the payment method is also negotiated between the user and the patentee. Both parties should adopt a win-win attitude.
What is patent license fee
Since patent right is an exclusive right, patent A rights holder who licenses others to use his patent may require others to pay patent licensing fees. Article 12 of my country’s Patent Law stipulates: “Any unit or individual that exploits another person’s patent shall enter into a written implementation contract with the patentee and pay patent royalties to the patentee. The licensee has no right to allow any use other than those stipulated in the contract. Units or individuals implement their patents." Therefore, it is reasonable for the patentee to require others to pay patent licensing fees in order to realize its economic interests. If someone else uses someone else's patent without paying the patent license fee, it constitutes patent infringement.
The reason why the patentee can require others to pay patent licensing fees is because he has worked hard and invested in the process of obtaining the patent. If others use the patent for free, the interests of the patentee will be harmed. The patentee makes an investment to obtain the patent and therefore assumes the risk of possible failure. If others use it for free, there will be a "free-riding" phenomenon. "If this 'free-riding' phenomenon is allowed, imitators will be able to sell the same product at a lower price than the innovator, thereby squeezing the innovator out of the market." This is extremely unfair to the patentee, as there is no corresponding return on his investment. Under market economy conditions, people invest for corresponding returns. Without patent licensing fees, people would not actively invent and create and obtain patents. This is extremely detrimental to scientific and technological progress and scientific research, and will ultimately damagethe overall interests of society. Therefore, requiring the payment of patent licensing fees is beneficial to both the patentee and the overall interests of society. Therefore, the use of other people's patents requires payment of patent license royalties, and the patentee has the right to require others to pay the royalties required by them.
Determination of patent royalties:
Patent right is a kind of property right, so anyone who wants To implement a patent right, patent royalties must be paid to the patentee. Of course, in practice, there are also cases where the patentee does not charge royalties through cross-licensing with others.
How to reasonably calculate patent royalties is a very important but also difficult issue in a licensing contract. The determination of patent royalties depends on many factors, which mainly include:
(1) The expenses incurred by the patentee in researching and developing the patent;
(2) The economic benefits that the licensee can obtain from using the patent;
(3) The type and implementation of the patent license Type and period of behavior;
(4) The method and time of payment of royalties by the licensee. In addition, whether there are alternative technologies on the market, the likelihood of technological improvements, and the bargaining power of both parties are also factors that affect royalties.
According to the provisions of Article 325 of the Contract Law, the method of payment of royalties shall be agreed upon by the parties, and may be made in a lump sum, a lump sum payment, or a lump sum or installment payment. , it can also take the form of commission payment or commission payment plus a prepaid entry fee. If it is agreed that commission payment will be made, it can be based on the product price, the new output value after the implementation of the patent, profits or a certain percentage of product sales, or it can also be calculated according to other agreed methods. The proportion of commission payment can be fixed proportion, increasing proportion year by year or decreasing proportion year by year. If commission payment is agreed upon, the parties shall stipulate in the contract the method for reviewing relevant accounting accounts.
Both methods, total settlement and commission fee, have their own advantages and disadvantages. In the final approach, the patentee gets the payment early and the risk is smaller, but the tax may be higher, and if the product sells well in the future, the patentee will not get any additional benefits. Of course, this approach creates risks for the licensee if the product does not achieve expected sales in the future. If the royalty is paid in installments, the risk borne by the licensee is relatively small, but if the sales of the product in the future are very good, the patentee can obtain a higher royalty fee. In many cases, royalties are paid using a combination of entry fees and royalties.
In summary, we know that the details of the patent license fee can be negotiated by both parties. Also know what patent royalties are. The above is the relevant information about the patent license fee brought to you by the editor of Legal Savior. I hope it can be helpful to you. If you still have any questions, you are welcome to seek online legal consultation.