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Property Law Provides details on the pledge of property right in IP

May 8, 2007
The property law was passed in the fifth session of the 10th the National People’s Congress on March 16, which will come into force as from October 1, 2007. The 17th Section of the law provides details on the issue of pledge with regard to the property right in the intellectual property.

The article 223 of the law provides: a debtor or a third party has a right to deal with the following for the pledge.

1)bank drafts; cheques; promissory notes.
2)Securities; deposit receipt;
3)shipping order; bill of lading;
4)transferable fund; share;
5)transferable exclusive right of use of a registered trademark, patent and copyright;
6)the amount of money in a debit note;
7)other property rights provided by the laws and administrative regulations.

The article 227 provides that where there is a pledge based on the exclusive right of use of a registered trademark, patent and/or copyright, it is required for the party to make a contract in written. The pledge right shall be established from the recordation of the pledge with the relevant authorities. After the pledge, the pledger shall not transfer or license the property right herein to any third party, except there is an agreement reached by the pledger and pledgor. The consideration obtained from the transferring or licensing property right of the intellectual property right which are used for a pledge, shall be paid to the pledgor for clearing the debt or deposit.

　

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