(Adopted at the 4th Meeting of the Standing                      Committee of the Sixth National People's Congress on March                      12,1984
                     Amended in accordance with the Decision of the Standing Committee                      of the Seventh National People's Congress on Amending the                      Patent Law of the People's Republic of China at its 27th Meeting                      on September 4,1992
                     Amended again in accordance with the Decision of the Standing                      Committee of the Ninth National People's Congress on Amending                      the Patent Law of the People's Republic of China adopted at                      its 17th Meeting on August 25,2000)
 
 TABLE OF CONTENTS
                     Chapter I General Provisions
                     Chapter II Requirements for Grant of Patent Right
                     Chapter III Application for Patent
                     Chapter IV Examination and Approval of Application for Patent
                     Chapter V Duration, Cessation and Invalidation of Patent Right
                     Chapter VI Compulsory License for Exploitation of Patent
                     Chapter VII Protection of Patent Right
                     Chapter VIII Supplementary Provisions
 Chapter I General Provisions
                     Article 1 This Law is enacted to protect patent rights for                      inventions-creations, to encourage invention-creation, to                      foster the spreading and application of inventions-creations,                      and to promote the development and innovation of science and                      technology, for meeting the needs of the construction of socialist                      modernization.
                     Article 2 In this Law, "inventions-creations" mean                      inventions, utility models and designs.
                     Article 3 The patent administration department under the State                      Council is responsible for the patent work throughout the                      country. It receives and examines patent applications and                      grants patent rights for inventions-creations in accordance                      with law.
                     The administrative authority for patent affairs under the                      people's governments of provinces, autonomous regions and                      municipalities directly under the Central Government are responsible                      for the administrative work concerning patents in their respective                      administrative areas .
                     Article 4 Where an invention-creation for which a patent is                      applied for relates to the security or other vital interests                      of the State and is required to be kept secret, the application                      shall be treated in accordance with the relevant prescriptions                      of the State.
                     Article 5 No patent right shall be granted for any invention-creation                      that is contrary to the laws of the State or social morality                      or that is detrimental to public interest.
                     Article 6 An invention-creation, made by a person in execution                      of the tasks of the entity to which he belongs, or made by                      him mainly by using the material and technical means of the                      entity is a service invention-creation. For a service intention-creation,                      the right to apply for a patent belongs to the entity. After                      the application is approved, the entity shall be the patentee.
                     For a non-service invention-creation, the right to apply for                      a patent belongs to the inventor or creator. After the application                      is approved, the inventor or creator shall be the patentee.
                     In respect of an invention-creation made by a person using                      the material and technical means of an entity to which he                      belongs, where the entity and the inventor or creator have                      entered into a contract in which the right to apply for and                      own a patent is provided for, such a provision shall apply.
                     Article 7. No entity or individual shall prevent the inventor                      or creator from filing an application for a patent for a non-service                      invention-creation.
                     Article 8. For an invention-creation jointly made by two or                      more entities or individuals, or made by an entity or individual                      in execution of a commission given to it or him by another                      entity or individual, the right to apply for a patent belongs,                      unless otherwise agreed upon, to the entity or individual                      that made, or to the entities or individuals that jointly                      made, the invention-creation. After the application is approved,                      the entity or individual that applied for it shall be the                      patentee.
                     Article 9. Where two or more applicants file applications                      for patent for the identical invention-creation, the patent                      right shall be granted to the applicant whose application                      was filed first.
                     Article 10. The right to apply for a patent and the patent                      right may be assigned.
                     Any assignment, by a Chinese entity or individual, of the                      right to apply for a patent, or of the patent right, to a                      foreigner must be approved by the competent department concerned                      of the State Council.
                     Where the right to apply for a patent or the patent right                      is assigned, the parties shall conclude a written contract                      and register it with the patent administration department                      under the State Council. The patent administration department                      under the State Council shall announce the registration. The                      assignment shall take effect as of the date of registration.
                     Article 11 After the grant of the patent right for an invention                      or utility model, except where otherwise provided for in this                      Law, no entity or individual may, without the authorization                      of the patentee, exploit the patent, that is, make, use, offer                      to sell, sell or import the patented product, or use the patented                      process, and use, offer to sell, sell or import the product                      directly obtained by the patented process, for production                      or business purposes.
                     After the grant of the patent right for a design, no entity                      or individual may, without the authorization of the patentee,                      exploit the patent, that is, make, sell or import the product                      incorporating its or his patented design, for production or                      business purposes.
                     Article 12. Any entity or individua1 exploiting the patent                      of another shall conclude with the patentee a written license                      contract for exploitation and pay the patentee a fee for the                      exploitation of the patent. The licensee has no right to authorize                      any entity or individual, other than that referred to in the                      contract for exploitation, to exploit the patent.
                     Article 13. After the publication of the application for a                      patent for invention, the applicant may require the entity                      or individual exploiting the invention to pay an appropriate                      fee.
                     Article 14. Where any patent for invention, belonging to any                      State-owned enterprise or institution, is of great significance                      to the interest of the State or to the public interest, the                      competent departments concerned under the State council and                      the people's governments of provinces, autonomous regions                      or municipalities directly under the Central Government may,                      after approval by the State Council, decide that the patented                      invention be spread and applied within the approved limits,                      and allow designated entities to exploit that invention. The                      exploiting entity shall, according to the regulations of the                      State, pay a fee for exploitation to the patentee .
                     Any patent for invention belonging to a Chinese individual                      or an entity under collective ownership, which is of great                      significance to the interest of the State or to the public                      interest and is in need of spreading and application, may                      be treated alike by making reference to the provisions of                      the preceding paragraph.
                     Article l5. The patentee has the right to affix a patent marking                      and to indicate the number of the patent on the patented product                      or on the packing of that product.
                     Article 16. The entity that is granted a patent right shall                      award to the inventor or creator of a service invention--creation                      a reward and, upon exploitation of the patented invention-creation,                      shall pay the inventor or creator a reasonable remuneration                      based on the extent of spreading and application and the economic                      benefits yielded.
                     Article l7. The inventor or creator has the right to be named                      as such in the patent document.
                     Article 18. Where any foreigner, foreign enterprise or other                      foreign organization having no habitual residence or business                      office in China files an application for a patent in China,                      the application sha1l be treated under this Law in accordance                      with any agreement concluded between the country to which                      the applicant belongs and China, or in accordance with any                      international treaty to which both countries are party, or                      on the basis of the principle of reciprocity.
                     Article l9. Where any foreigner, foreign enterprise or other                      foreign organization having no habitual residence or business                      office in China applies for a patent, or has other patent                      matters to attend to, in China, it or he shall appoint a patent                      agency designated by the patent administration department                      under the State Council to act as his or its agent.
                     Where any Chinese entity or individual applies for a patent                      or has other patent matters to attend to in the country, it                      or he may appoint a patent agency to act as its or his agent.
                     The patent agency shall comply with the provisions of laws                      and administrative regulations, and handle patent applications                      and other patent matters according to the instructions of                      its clients. In respect of the contents of its clients' inventions-creations,                      except for those that have been published or announced, the                      agency shall bear the responsibility of keeping them confidential.                      The administrative regulations governing the patent agency                      shall be formulated by the State Council.
                     Article 20. Where any Chinese entity or individual intends                      to file an application in a foreign country for a patent for                      invention-creation made in China, it or he shall file first                      an application for patent with the patent administration department                      under the State Council, appoint a patent agency designated                      by the said department to act as its or his agent, and comply                      with the provisions of Article 4 of this Law.
                     Any Chinese entity or individual may file an international                      application for patent in accordance with any international                      treaty concerned to which China is party. The applicant filing                      an international application for patent shall comply with                      the provisions of the preceding paragraph.
                     The patent administration department under the State Council                      shall handle any international application for patent in accordance                      with the international treaty concerned to which China is                      party, this Law and the relevant regulations of the State                      Council.
                     Article 21. The patent administration department under the                      State Council and its Patent Reexamination Board shall handle                      any patent application and patent-related request according                      to law and in conformity with the requirements for being objective,                      fair, correct and timely.
                     Until the publication or announcement of the application for                      a patent, staff members of the patent administration department                      under the State Council and other persons involved have the                      duty to keep its contents secret.
Chapter II Requirements for Grant of Patent Right
                     Article 22. Any invention or utility model for which patent                      right may be granted must possess novelty, inventiveness and                      practical app1icability.
                     Novelty means that, before the date of filing, no identical                      invention or utility model has been publicly disclosed in                      publications in the country or abroad or has been publicly                      used or made known to the public by any other means in the                      country, nor has any other person filed previously with the                      Patent Administration Department Under the State Council an                      application which described the identical invention or utility                      mode1 and was published after the said date of filing.
                     Inventiveness means that, as compared with the technology                      existing before the date of filing, the invention has prominent                      substantive features and represents a notable progress and                      that the utility model has substantive features and represents                      progress.
                     Practical applicability means that the invention or utility                      model can be made or used and can produce effective results.
                     
                     Article 23. Any design for which patent right may be granted                      must not be identical with and simi1ar to any design which,                      before the date of filing, has been publicly disclosed in                      publications in the country or abroad or has been publicly                      used in the country, and must not be in conflict with any                      prior right of any other person.
                     Article 24. An invention-creation for which a patent is applied                      for does not lose its novelty where, within six months before                      the date of filing, one of the following events occurred:                      
                     (l) where it was first exhibited at an international exhibition                      sponsored or recognized by the Chinese Government;
                     (2) where it was first made public at a prescribed academic                      or technological meeting;
                     (3) where it was disc1osed by any person without the consent                      of the applicant.
                     Article 25 For any of the following, no patent right shall                      be granted:
                     (1) scientific discoveries;
                     (2) rules and methods for mental activities;
                     (3) methods for the diagnosis or for the treatment of diseases;
                     (4) animal and plant varieties;
                     (5) substances obtained by means of nuclear transformation.
                     For processes used in producing products referred to in items                      (4) of the preceding paragraph, patent right may be granted                      in accordance with the provisions of this Law.
 Chapter III Application for Patent
                     Article 26. Where an application for a patent for invention                      or utility model is filed, a request, a description and its                      abstract, and claims shall be submitted.
                     The request shall state the title of the invention or utility                      model, the name of the inventor or creator, the name and the                      address of the applicant and other related matters.
                     The description shall set forth the invention or utility model                      in a manner sufficiently clear and complete so as to enable                      a person skilled in the re1evant field of techno1ogy to carry                      it out; where necessary, drawings are required. The abstract                      shall state briefly the main technical points of the invention                      or utility model.
                     The claims sha1l be supported by the description and shal1                      state the extent of the patent protection asked for.
                     Article 27. Where an app1ication for a patent for design is                      filed, a request, drawings or photographs of the design shall                      be submitted, and the product incorporating the design and                      the class to which that product be1ongs shall be indicated.
                     Article 28. The date on which the Patent Administration Department                      Under the State Council receives the application shall be                      the date of filing. If the app1ication is sent by mail, the                      date of mailing indicated by the postmark shall be the date                      of filing.
                     Article 29. Where , within twelve months from the date on                      which any applicant first filed in a foreign country an application                      for a Patent for invention or utility model, or within six                      months from the date on which any applicant first filed in                      a foreign country an application for a patent for design,                      he or it files in China an application for a patent for the                      same subject matter, he or it may, in accordance with any                      agreement concluded between the said foreign country and China,                      or in accordance with any international treaty to which both                      countries are party, or on the basis of the principle of mutual                      recognition of the right of priority, enjoy a right of priority.
                     Where, within twelve months from the date on which any applicant                      first filed in China an application for a patent for invention                      or utility model, he or it files with the Patent Administration                      Department Under the State Council an application for a patent                      for the same subject matter , he or it may enjoy a right of                      priority.
                     Article 30. Any applicant who claims the right of priority                      shall make a written declaration when the application is filed,                      and submit, within three months, a copy of the patent application                      document which was first filed ; if the applicant fails to                      make the written declaration or to meet the time limit for                      submitting the patent application document, the claim to the                      right of priority shall be deemed not to have been made.
                     Article 3l. An application for a patent for invention or utility                      model shall be limited to one invention or uti1ity model.                      Two or more inventions or utility models belonging to a single                      general inventive concept may be filed as one application.
                     An application for a patent for design shall be limited to                      one design incorporated in one product. Two or more designs                      which are incorporated in products belonging to the same c1ass                      and are sold or used in sets may be filed as one application.
                     Article 32. An applicant may withdraw his or its application                      for a patent at any time before the patent right is granted.
                     Article 33. An applicant may amend his or its application                      for a patent, but the amendment to the application for a patent                      for invention or utility model may not go beyond the scope                      of the disclosure contained in the initial description and                      claims, and the amendment to the application for a patent                      for design may not go beyond the scope of the disclosure as                      shown in the initial drawings or photographs.
 Chapter IV Examination and Approval of Application for                      Patent
                     Article 34. Where, after receiving an application for a patent                      for invention, the Patent Administration Department Under                      the State Council, upon preliminary examination, finds the                      application to be in conformity with the requirements of this                      Law, it shall publish the application promptly after the expiration                      of eighteen months from the date of filing. Upon the request                      of the applicant, the Patent Administration Department Under                      the State Council publishes the application earlier.
                     Article 35. Upon the request of the applicant for a patent                      for invention, made at any time within three years from the                      date of filing, the Patent Administration Department Under                      the State Council will proceed to examine the application                      as to its substance. If, without any justified reason, the                      applicant fails to meet the time limit for requesting examination                      as to substance, the application shall be deemed to have been                      withdrawn.
                     The Patent Administration Department Under the State Council                      may, on its own initiative, proceed to examine any application                      for a patent for invention as to its substance when it deems                      it necessary.
                     Article 36. When the applicant for a patent for invention                      requests examination as to substance , he or lit shall furnish                      pre-filing date reference materials concerning the invention.
                     For an application for a patent for invention that has been                      already filed in a foreign country, the patent administration                      department under the State Council may ask the app1icant to                      furnish within a specified time limit documents concerning                      any search made for the purpose of examining that application,                      or concerning the results of any examination made, in that                      country. If, at the expiration of the specified time limit,                      without any justified reason, the said documents are not furnished,                      the application shall be deemed to have been withdrawn.
                     Article 37. Where the Patent Administration Department Under                      the State Council , after it has made the examination as to                      substance of the application for a patent for invention, finds                      that the application is not in conformity with the provisions                      of this Law, it shall notify the applicant and request him                      or it to submit, within a specified time limit, his or its                      observations or to amend the application. If, without any                      justified reason, the time limit for making response is not                      met, the application shall be deemed to have been withdrawn.
                     Article 38. Where, after the applicant has made the observations                      or amendments, the Patent Administration Department Under                      the State Council finds that the application for a patent                      for invention is still not in conformity with the provisions                      of this Law, the application shall be rejected.
                     Article 39. Where it is found after examination as to substance                      that there is no cause for rejection of the application for                      a patent for invention, the patent administration department                      under the State Council shall make a decision to grant the                      patent right for invention, issue the certificate of patent                      for invention, and register and announce it. The patent right                      for invention shall take effect as of the date of the announcement.
                     Article 40. Where it is found after preliminary examination                      that there is no cause for rejection of the application for                      a patent for utility model or design, the patent administration                      department under the State Council shall make a decision to                      grant the patent right for utility model or the patent right                      for design, issue the relevant patent certificate, and register                      and announce it. The patent right for utility model or design                      shall take effect as of the date of the announcement.
                     Article 41. The patent administration department under the                      State Council shall set up a Patent Reexamination Board. Where                      an applicant for patent is not satisfied with the decision                      of the said department rejecting the application, the applicant                      may, within three months from the date of receipt of the notification,                      request the Patent Reexamination Board to make a reexamination.                      The Patent Reexamination Board shall, after reexamination,                      make a decision and notify the applicant for patent.
                     Where the applicant for patent is not satisfied with the decision                      of the Patent Reexamination Board, it or he may, within three                      months from the date of receipt of the notification, institute                      legal proceedings in the people's court.
 Chapter V Duration, Cessation and Invalidation of Patent                      Right
                     Article 42. The duration of patent right for inventions shall                      be twenty years, the duration of patent right for utility                      models and patent right for designs shall be ten years, counted                      from the date of filing.
                     Article 43. The patentee shall pay an annual fee beginning                      with the year in which the patent right was granted.
                     Article 44. In any of the following cases, the patent right                      shall cease before the expiration of its duration:
                     (1) where an annual fee is not paid as prescribed;
                     (2) where the patentee abandons his or its patent right by                      a written declaration.
                     Any cessation of the patent right shall be registered and                      announced by the Patent Administration Department Under the                      State Council .
                     Article 45. Where, starting from the date of the announcement                      of the grant of the patent right by the patent administration                      department under the State Council, any entity or individual                      considers that the grant of the said patent right is not in                      conformity with the relevant provisions of this Law, it or                      he may request the Patent Reexamination Board to declare the                      patent right invalid.
                     Article 46. The Patent Reexamination Board shall examine the                      request for invalidation of the patent right promptly, make                      a decision on it and notify the person who made the request                      and the patentee. The decision declaring the patent right                      invalid shall be registered and announced by the patent administration                      department under the State Council.
                     Where the patentee or the person who made the request for                      invalidation is not satisfied with the decision of the Patent                      Reexamination Board declaring the patent right invalid or                      upholding the patent right, such party may, within three months                      from receipt of the notification of the decision, institute                      legal proceedings in the people's court. The people's court                      shall notify the person that is the opponent party of that                      party in the invalidation procedure to appear as a third party                      in the legal proceedings.
                     
                     Article 47. Any patent right which has been declared invalid                      shall be deemed to be non-existent from the beginning.
                     The decision declaring the patent right invalid shall have                      no retroactive effect on any judgement or ruling of patent                      infringement which has been pronounced and enforced by the                      people's court, on any decision concerning the handling of                      a dispute over patent infringement which has been complied                      with or compulsorily executed, or on any contract of patent                      license or of assignment of patent right which has been performed                      prior to the declaration of the patent right invalid; however,                      the damage caused to other persons in bad faith on the part                      of the patentee shall be compensated.
                     If, pursuant to the provisions of the preceding paragraph,                      the patentee or the assignor of the patent right makes no                      repayment to the licensee or the assignee of the patent right                      of the fee for the exploitation of the patent or of the price                      for the assignment of the patent right, which is obviously                      contrary to the principle of equity, the patentee or the assignor                      of the patent right shall repay the whole or part of the fee                      for the exploitation of the patent or of the price for the                      assignment of the patent right to the licensee or the assignee                      of the patent right.
 Chapter VI Compulsory License for Exploitation of Patent
                     Article 48. Where any entity which is qualified to exploit                      the invention or utility model has made requests for authorization                      from the patentee of an invention or utility model to exploit                      its or his patent on reasonable terms and conditions and such                      efforts have not been successful within a reasonable period                      of time, the Patent Administration Department Under the State                      Council may, upon the request of that entity, grant a compulsory                      license to exploit the patent for invention or utility model.
                     Article 49. Where a national emergency or any extraordinary                      state of affairs occurs, or where the public interest so requires,                      the Patent Administration Department Under the State Council                      may grant a compulsory license to exploit the patent for invention                      or utility model.
                     Article 50. Where the invention or utility model for which                      the patent right has been granted involves important technical                      advance of considerable economic significance in relation                      to another invention or utility model for which a patent right                      has been granted earlier and the exploitation of the later                      invention or utility model depends on the exploitation of                      the earlier invention or utility model, the patent administration                      department under the State Council may, upon the request of                      the later patentee, grant a compulsory license to exploit                      the earlier invention or utility model.
                     Where, according to the preceding paragraph, a compulsory                      license is granted, the Patent Administration Department Under                      the State Council may, upon the request of the earlier patentee,                      also grant a compulsory license to exploit the later invention                      or utility model.
                     Article 51. The entity or individual requesting, in accordance                      with the provisions of this Law, a compulsory license for                      exploitation shall furnish proof that it or he has not been                      able to conclude with the patentee a license contract for                      exploitation on reasonable terms and conditions.
                     Article 52. The decision made by the patent administration                      department under the State Council granting a compulsory license                      for exploitation shall be notified promptly to the patentee                      concerned, and shall be registered and announced.
                     In the decision granting the compulsory license for exploitation,                      the scope and duration of the exploitation shall be specified                      on the basis of the reasons justifying the grant. If and when                      the circumstances which led to such compulsory license cease                      to exist and are unlikely to recur, the patent administration                      department under the State Council may, after review upon                      the request of the patentee, terminate the compulsory license.                      
                     Article 53. Any entity or individual that is granted a compulsory                      license for exploitation shall not have an exclusive right                      to exploit and shall not have the right to authorize exploitation                      by any others.
                     Article 54. The entity or individual that is granted a compulsory                      license for exploitation shall pay to the patentee a reasonable                      exploitation fee, the amount of which shall be fixed by both                      parties in consultations. Where the parties fail to reach                      an agreement, the Patent Administration Department Under the                      State Council shall adjudicate.
                     Article 55. Where the patentee is not satisfied with the decision                      of the patent administration department under the State Council                      granting a compulsory license for exploitation, or where the                      patentee or the entity or individual that is granted the compulsory                      license for exploitation is not satisfied with the ruling                      made by the patent administration department under the State                      Council regarding the fee payable for exploitation, it or                      he may, within three months from the receipt of the date of                      notification, institute legal proceedings in the people's                      court.
 Chapter VII Protection of Patent Right
                     Article 56. The extent of protection of the patent right for                      invention or utility model shall be determined by the terms                      of the claims. The description and the appended drawings may                      be used to interpret the claims.
                     The extent of protection of the patent right for design shall                      be determined by the product incorporating the patented design                      as shown in the drawings or photographs.
                     Article 57. Where a dispute arises as a result of the exploitation                      of a patent without the authorization of the patentee, that                      is, the infringement of the patent right of the patentee,                      it shall be settled through consultation by the parties. Where                      the parties are not willing to consult with each other or                      where the consultation fails, the patentee or any interested                      party may institute legal proceedings in the people's court,                      or request the administrative authority for patent affairs                      to handle the matter. When the administrative authority for                      patent affairs handling the matter considers that the infringement                      is established, it may order the infringer to stop the infringing                      act immediately. If the infringer is not satisfied with the                      order, he may, within 15 days from the date of receipt of                      the notification of the order, institutes legal proceedings                      in the people's court in accordance with the Administrative                      Procedure Law of the People's Republic of China. If, within                      the said time limit, such proceedings are not instituted and                      the order is not complied with, the administrative authority                      for patent affairs may approach the people's court for compulsory                      execution. The said authority handling the matter may, upon                      the request of the parties, mediate in the amount of compensation                      for the damage caused by the infringement of the patent right.                      If the mediation fails, the parties may institute legal proceedings                      in the people's court in accordance with the Civil Procedure                      Law of the People's Republic of China.
                     Where any infringement dispute relates to a patent for invention                      for a process for the manufacture of a new product, any entity                      or individual manufacturing the identical product shall furnish                      proof to show that the process used in the manufacture of                      its or his product is different from the patented process.                      Where the infringement relates to a patent for utility model,                      the people's court or the administrative authority for patent                      affairs may ask the patentee to furnish a search report made                      by the patent administration department under the State Council.                      
                     Article 58. Where any person passes off the patent of another                      person as his own, he shall, in addition to bearing his civil                      liability according to law, be ordered by the administrative                      authority for patent affairs to amend his act, and the order                      shall be announced. His illegal earnings shall be confiscated                      and , in addition, he may be imposed a fine of not more than                      three times his illegal earnings and, if there is no illegal                      earnings, a fine of not more than RMB 50,000 yuan. Where the                      infringement constitutes a crime, he shall be prosecuted for                      his criminal liability.
                     Article 59. Where any person passes any non-patented product                      off as patented product or passes any non-patented process                      off as patented process, he shall be ordered by the administrative                      authority for patent affairs to amend his act , and the order                      shall be announced, and he may be imposed a fine of no more                      than RMB 50,000 yuan.
                     Article 60. The amount of compensation for the damage caused                      by the infringement of the patent right shall be assessed                      on the basis of the losses suffered by the patentee or the                      profits which the infringer has earned through the infringement.                      If it is difficult to determine the losses which the patentee                      has suffered or the profits which the infringer has earned,                      the amount may be assessed by reference to the appropriate                      multiple of the amount of the exploitation fee of that patent                      under contractual license. 
                     Article 61. Where any patentee or interested party has evidence                      to prove that another person is infringing or will soon infringe                      its or his patent right and that if such infringing act is                      not checked or prevented from occurring in time, it is likely                      to cause irreparable harm to it or him, it or he may, before                      any legal proceedings are instituted, request the people's                      court to adopt measures for ordering the suspension of relevant                      acts and the preservation of property.
                     The people's court, when dealing with the request mentioned                      in the preceding paragraph, shall apply the provisions of                      Article 93 through Article 96 and of Article 99 of the Civil                      Procedure Law of the People's Republic of China
                     Article 62. Prescription for instituting legal proceedings                      concerning the infringement of patent right is two years counted                      from the date on which the patentee or any interested party                      obtains or should have obtained knowledge of the infringing                      act.
                     Where no appropriate fee for exploitation of the invention,                      subject of an application for patent for invention, is paid                      during the period from the publication of the application                      to the grant of patent right, prescription for instituting                      legal proceedings by the patentee to demand the said fee is                      two years counted from the date on which the patentee obtains                      or should have obtained knowledge of the exploitation of his                      invention by another person. However, where the patentee has                      already obtained or should have obtained knowledge before                      the date of the grant of the patent right, the prescription                      shall be counted from the date of the grant.
                     
                     Article 63. None of the following shall be deemed an infringement                      of the patent right:
                     (l) Where, after the sale of a patented product that was made                      or imported by the patentee or with the authorization of the                      patentee, or of a product that was directly obtained by using                      the patented process, any other person uses, offers to sell                      or sells that product;
                     (2) Where, before the date of filing of the application for                      patent, any person who has already made the identical product,                      used the identical process, or made necessary preparations                      for its making or using, continues to make or use it within                      the original scope only;
                     (3) Where any foreign means of transport which temporarily                      passes through the territory, territorial waters or territorial                      airspace of China uses the patent concerned, in accordance                      with any agreement concluded between the country to which                      the foreign means of transport belongs and China, or in accordance                      with any international treaty to which both countries are                      party, or on the basis of the principle of reciprocity, for                      its own needs, in its devices and installations;
                     (4) Where any person uses the patent concerned solely for                      the purposes of scientific research and experimentation.
                     Any person who, for production and business purposes, uses                      or sells a patented product or a product that was directly                      obtained by using a patented process, without knowing that                      it was made and sold without the authorization of the patentee,                      shall not be liable to compensate for the damage of the patentee                      if he can prove that he obtains the product from a legitimate                      source.
                     Article 64. Where any person, in violation of the provisions                      of Article 20 of this Law, files in a foreign country an application                      for a patent that divulges an important secret of the State,                      he shall be subject to disciplinary sanction by the entity                      to which he belongs or by the competent authority concerned                      at the higher level. Where a crime is established, the person                      concerned shall be prosecuted for his criminal liability according                      to the law.
                     Article 65. Where any person usurps the right of an inventor                      or creator to apply for a patent for a non-service invention-creation,                      or usurps any other right or interest of an inventor or creator,                      prescribed by this Law, he shall be subject to disciplinary                      sanction by the entity to which he belongs or by the competent                      authority at the higher level.
                     Article 66. The administrative authority for patent affairs                      may not take part in recommending any patented product for                      sale to the public or any such commercial activities.
                     Where the administrative authority for patent affairs violates                      the provisions of the preceding paragraph, it shall be ordered                      by the authority at the next higher level or the supervisory                      authority to correct its mistakes and eliminate the bad effects.                      The illegal earnings, if any, shall be confiscated. Where                      the circumstances are serious, the persons who are directly                      in charge and the other persons who are directly responsible                      shall be given disciplinary sanction in accordance with law.                      
                     
                     Article 67. Where any State functionary working for patent                      administration or any other State functionary concerned neglects                      his duty, abuses his power, or engages in malpractice for                      personal gain, which constitutes a crime, shall be prosecuted                      for his criminal liability in accordance with law. If the                      case is not serious enough to constitute a crime, he shall                      be given disciplinary sanction in accordance with law.
Chapter VIII Supplementary Provisions                     Article 68. Any application for a patent filed with, and any                      other proceedings before, the Patent Administration Department                      Under the State Council shall be subject to the payment of                      a fee as prescribed.                     Article 69. This Law shall enter into force on April l, 1985.