Patent implementation licensing, also known as patent license trade, refers to the patent technology owner or its licensor allowing others to implement their patents in a certain period, in a certain area, and in a certain way, and charging others Usage fees.
In practice, the law does not specifically stipulate the standards for this fee, but only provides some factors for determining the fee:
(1) The patentee’s research and development of patented technology Difficulty and cost. Generally speaking, patents that are difficult to research and develop and require high development costs will have relatively high royalties.
(2) The amount of income that the licensee can obtain from using the patent. Those with big profits have high usage fees.
(3)Patent license implementation type and implementation period. Generally speaking, the royalties for exclusive implementation licenses are relatively high, and the royalties for ordinary implementation licenses are relatively low. Cross-implementation licenses sometimes do not pay royalties to each other.
(4) The method by which the licensee pays royalties. According to the provisions of the Contract Law, the payment method of patent license royalties can be a lump sum payment, a lump sum payment or a lump sum payment in installments, or a commission payment or a commission payment plus an entry fee. In practice, a combination of entry fee and commission fee is a common payment method.