Legal basis: People's Republic of China (PRC) Patent Law.
Article 10 The right to apply for a patent and the patent right may be transferred.
Where a unit or individual in China transfers the right to apply for a patent or the patent right to a foreigner, foreign enterprise or other foreign organization, it shall go through the formalities in accordance with the provisions of relevant laws and administrative regulations.
Where the right to apply for a patent or the patent right is transferred, the parties concerned shall conclude a written contract and register it with the patent administration department of the State Council, which shall make an announcement. The transfer of the right to apply for a patent or the patent right shall take effect from the date of registration.
Article 11 After the patent right for invention and utility model is granted, except as otherwise provided in this Law, no unit or individual may exploit the patent without the permission of the patentee, that is, it may not manufacture, use, promise to sell, sell or import the patented product for production and business purposes, nor may it use the patented method and use, promise to sell, sell or import the product directly obtained according to the patented method.
After the design patent is granted, no unit or individual may exploit its patent without the permission of the patentee, that is, it may not manufacture, promise to sell, sell or import its patented product for production and business purposes.
Article 12 Any unit or individual that exploits another person's patent shall conclude an exploitation license contract with the patentee and pay the patentee the royalties. The licensee has no right to allow any unit or individual other than those stipulated in the contract to exploit the patent.