In the evaluation of intangible assets, the difference between patents and proprietary technologies

The main difference between patents and proprietary technologies

(1) Different confidentiality: According to the provisions of patent laws in various countries, when applying for a patent, the inventor must include the content of the invention in the patent. It will be disclosed in the application and published in the official "Patent Bulletin" by the patent authority to make it public. However, proprietary technology is kept secret as much as possible and is not disclosed. Once confidentiality is lost, it cannot be protected by law.

(2) Different timeliness: Patented technology has a statutory term, of which the protection term for invention patent rights is 20 years, and the term for utility model patent rights and design patent rights is 10 years. This is not the case with proprietary technology, which has no expiration date. Know-how is secret, and as long as the technology is not made public, the person with the know-how can always enjoy the technology exclusively.

(3) Regional differences: Patented technology is protected in the area where authorization is approved and has regional characteristics. The patent rights granted by a country in accordance with its own patent law are only limited to the scope governed by the laws of that country. It is valid within the country and does not have any binding force on other countries. Know-how is not geographically specific. As long as the technology is not made public, the owner of the proprietary technology can exclusively use the technology in any country in the world without any geographical restrictions.

(4) Different legal protections: The protection of patented technology has special legal protection and the protection of the "Patent Law". Once a person obtains the patent right of a certain proprietary technology, the proprietary technology is protected by Protection by my country’s patent law. Proprietary technology is an intangible intellectual property that is protected mainly by means of confidentiality. The legal protection of proprietary technology is far less than that of patented technology.

Legal Basis

"Law of the People's Republic of China and the State Against Unfair Competition"

Article 42 The term of invention patent rights is twenty In 2017, the term of utility model patent rights is ten years, and the term of design patent rights is fifteen years, both calculated from the date of application.

If the invention patent right is granted after four years from the date of application for the invention patent and three years from the date of request for substantive examination, the patent administration department of the State Council shall, at the request of the patentee, make a decision on the invention patent in Unreasonable delays in the grant process will be compensated for the duration of the patent right, except for unreasonable delays caused by the applicant.

In order to compensate for the time taken up by the review and approval of new drugs, for invention patents related to new drugs that have been approved for marketing in China, the Patent Administration Department of the State Council will provide patent period compensation at the request of the patentee. The compensation period shall not exceed five years, and the total effective patent period after the new drug is approved for marketing shall not exceed fourteen years.

Article 11 After an invention or utility model patent right 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 shall not For production and business purposes, manufacture, use, offer for sale, sell, and import its patented products, or use its patented methods and use, offer for sale, sell, and import products directly obtained according to the patented method.

After the design patent right is granted, no unit or individual may exploit the patent without the permission of the patentee, that is, the design patent shall not be manufactured, offered for sale, sold, or imported for production and business purposes. product.