What is royalty?

Royalty refers to the fees paid for using patents, trademarks, copyrights or other exclusive rights owned by other economic units, and also refers to any money paid by people for using rights or intangible property such as information and services. Not commission: first, after-sales service remuneration under pure trade in goods; Second, the remuneration received by the seller for providing services to the buyer during the product warranty period; Three, refers to the relevant services obtained by institutions or individuals specializing in engineering, management, consulting and other professional services; 4. Other similar remuneration stipulated by People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China.

Patent scope

Generally speaking, royalties refer to the fees paid to obtain the following rights:

Patents, designs, drawings, processes and know-how related to the estimated goods manufacturing;

Trademarks and registered designs related to the expected export sales of goods;

Copyright, copyright, etc. Related to estimating the use of goods.

The above payment objects can be summarized into three categories: rights, information and services. Some of these rights have been confirmed, standardized and protected by law (such as patent right, copyright, registered trademark, etc.). ), while others are not recognized by law (such as information, services and know-how).

The above-mentioned "patent right" refers to the right granted by the patent registration institution to the inventor or holder to exclusively create, use and transfer the technological invention within a certain period of time; Trademark right refers to the right to use specific words, names and patterns to identify a commodity; Copyright refers to the right of the creators of books, artistic works and audio-visual products and their authorized publishers to make, publish and distribute the above-mentioned works and copies (excluding the income from remuneration); The so-called "non-patented technology" refers to all the technical knowledge, experience and skills or their combinations needed to produce a certain product or a certain process technology, including various design materials, drawings, data, process flows, formulas, etc.