Net income from transfer of patent ownership

Legal analysis: patent right belongs to property right, and patent transfer refers to a contract in which the patentee, as the transferor, transfers the ownership or holding right of his invention-creation patent to the transferee, and the transferee pays the agreed price. In the licensing contract, the patentee disposes of the right to use the patent right rather than the ownership. When transferring the patent right, the patentee disposes of the ownership, so the income from the transfer of the patent right belongs to the property income.

Legal basis: Article 10 of the Patent Law of People's Republic of China (PRC), the patent application right and patent right can 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.