Operational Guidelines for IP Rights Licensing released in Shenzhen
The Operational Guidelines for Intellectual Property Rights Licensing in Shenzhen, the first official guide on IP rights licensing, were issued by the Shenzhen Municipal Intellectual Property Office on September 24 2008.
- promote the efficient utilization of IP rights;
- enhance the profitability of IP assets; and
- minimize the economic and legal risks associated with licensing.
- the scope of the licensed rights, the type of licence, the period concerned and the territory covered;
- the restrictions placed on the licensee (eg, the prohibition to alter the licensor’s trademarks and engage in reverse engineering);
- the duty of confidentiality;
- the assurance that the licensed rights will not infringe the rights of third parties, together with a provision on liability in the event of such infringement claims;
- a confirmation that the licence will effect no transfer in ownership of the IP rights;
- a provision on dispute resolution specifying the forum in which any disputes arising between the parties will be resolved, as well as the applicable law (for foreign-related disputes, the guidelines suggest arbitration at the Hong Kong International Arbitration Centre or the Singapore International Arbitration Centre);
- the obligation to conduct an IP audit on the licensee;
- the licensee’s obligations to provide sales reports and/or sales estimates; and
- the termination of the licence.
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