What is the patent amortization fee and how to calculate it?

Patent amortization fee refers to the value of patent right, which belongs to intangible assets and generally has no net residual value. The calculation method is amortized according to its entry value and service life (service life and legal protection life, whichever is shorter), and generally adopts the straight-line method. Value divided by years equals annual depreciation, and then divided by 12 equals monthly depreciation.

Patent right, referred to as "patent" for short, is the exclusive right of the inventor or his obligee to exploit a specific invention within a certain period of time, and it is a kind of intellectual property right. China promulgated the Patent Law on 1984, and the detailed rules for its implementation on 1985, which made specific provisions on related matters.

I. Determination of patent amortization period

(1) In general, the cost of intangible assets should be amortized within its expected service life;

(2) If the expected service life exceeds the beneficial period stipulated in the relevant contract or the effective period stipulated by law, the amortization period of intangible assets shall be determined according to relevant principles.

Second, the accounting treatment of patent amortization

(a) the principle of confirming the patent amortization period:

Once the amortization period of 1. patent is determined, it shall not be changed casually. According to the current system, the principle of confirming the patent amortization period is: if the law, contract and enterprise application stipulate the legal validity period and benefit period respectively, it shall be determined according to the principle of shorter validity period and benefit period.

2. The law does not stipulate the effective period, but the enterprise contract or contract application has an agreed benefit period, which shall be determined according to the agreed benefit period; If laws, contracts and enterprise applications all stipulate storage period or benefit period, the period shall not be less than 10 year.

(2) Patent amortization method. Patents are generally amortized in equal installments, and the amortization method is as follows

1. The annual amortization amount of a patent = the actual expenditure/effective year of the patent, and the monthly amortization amount = the annual amortization amount/12.

2. Accounting treatment of patent amortization. Actual monthly amortization amount: by: management expenses-patent amortization.

3. Loan: accumulated amortization

Third, the rights included by the patentee.

(1) Prohibition right, that is, the patentee has the right to prohibit others from manufacturing, using or selling;

(2) Licensing right, that is, the patentee conditionally allows others to use its patented technology;

(3) the right of assignment, that is, the right of the patentee to assign the patent application right and patent right according to law;

(4) Other rights. According to Article 22 of the Patent Law of People's Republic of China (PRC), inventions and utility models that are granted patent rights should be novel, creative and practical.