Legal basis: Civil Code of People's Republic of China (PRC).
Article 860 The right to apply for a patent for an invention-creation completed through cooperative development belongs to the parties involved in the cooperative development. If one party transfers its patent application right, under the same conditions, the other parties have the priority to be assigned. However, unless otherwise agreed by the parties.
If one party to a cooperative development waives its right to apply for a patent, it may apply separately by the other party or jointly by other parties, unless otherwise agreed by the parties. If the applicant obtains a patent right, the party who gives up the right to apply for a patent may exploit the patent free of charge.
If one party to the cooperative development does not agree to apply for a patent, the other party or other parties shall not apply for a patent.
Article 861 The right to use, the right to transfer, and the way to distribute the proceeds of the technological secret achievements completed through entrusted development or cooperative development shall be agreed upon by the parties. Where there is no agreement or the agreement is unclear and cannot be determined according to the provisions of Article 510 of this Law, the parties concerned have the right to use and transfer the same technical scheme before being granted the patent right. However, the research developer entrusted with research and development shall not transfer the research and development results to a third party before delivering them to the client.