ChinaBizInsight

Decoding China Patent Legal Status: Your Essential Guide to Authorization, Invalidation, Pledges & Licensing Verification

Why Patent Legal Status Matters in China

When engaging Chinese partners or evaluating competitors, verifying a patent’s legal status is critical. A patent’s validity—whether it’s authorized, invalidated, pledged as collateral, or licensed—directly impacts IP security, investment decisions, and partnership risks. In China, where IP disputes surged by 15.7% in 2023 (CNIPA), due diligence is non-negotiable.


Key Patent Statuses & Verification Methods

1. Authorized Patents: Confirming Active Protection

  • What It Means: The patent is legally enforceable. Rights include manufacturing, sales, and licensing.
  • How to Verify:
  • CNIPA’s Patent Search System (http://pss-system.cnipa.gov.cn): Enter the patent number to view:
    • Authorization date
    • Annual fee payment status (non-payment triggers termination).
  • Critical Checks:
    • Scope of protection (claims vs. actual product).
    • Geographic coverage (China-only vs. international filings).

2. Invalidated Patents: Identifying Voided Rights

  • Grounds for Invalidation: Lack of novelty, non-industrial applicability, or fraudulent claims (Patent Law, Art. 45).
  • Verification Tools:
  • CNIPA Invalidation Decisions Database: Lists patents voided by administrative rulings.
  • Court Records: Check China Judgments Online for litigation outcomes.
  • Red Flags:
  • Patents invalidated over 6 months ago (no appeal window).
  • Multiple invalidation petitions against one patent.

3. Pledged Patents: Uncovering Hidden Liabilities

  • Risks: Pledged patents can be liquidated if the owner defaults.
  • Search Process:
  • National IP Pledge Registry: Accessible via China’s Credit Reference Center.
  • Key Details to Confirm:
    • Pledge duration.
    • Secured debt value.
    • Creditor’s rights (e.g., exclusive licensing).
  • Case Example: In 2022, a Shenzhen tech firm’s patent pledge led to creditor seizure after loan default.

4. Licensed Patents: Tracking Usage Rights

  • License Types:
  • Exclusive (licensee-only rights).
  • Non-exclusive (multiple parties).
  • Compulsory (government-mandated, e.g., public health crises).
  • Verification Channels:
  • CNIPA Patent License Recordal Platform: Validate registered licenses.
  • Cross-Check: License terms vs. actual product exploitation.

Step-by-Step Verification Workflow

  1. Gather Patent Details: Numbers, applicant name, filing date.
  2. Use CNIPA’s Systems:
  • Patent Search for status.
  • Pledge/License Registries for encumbrances.
  1. Third-Party Reports: For complex portfolios, use authoritative Enterprise Credit Reports to uncover associated risks (e.g., parent company litigation).
  2. Legal Counsel Review: Validate findings with local IP experts.

💡 Tip: Always verify translations. English patent titles in CNIPA databases may not match Chinese originals.


Why Overlooked Status Checks Cause Business Risks

  • Scenario 1: Acquiring a “valid” patent later invalidated for prior art → Loss of R&D investment.
  • Scenario 2: Unreported pledge → Asset seizure post-M&A deal.
  • Solution: Integrate patent checks into broader due diligence, like reviewing a company’s Financial & Tax Reports for R&D consistency.

Partner with Confidence

Navigating China’s patent landscape demands precision. While public tools offer baseline data, complex cases require expert verification. At ChinaBizInsight, we combine official CNIPA data with deep-dive analysis—from patent validity to corporate credibility—ensuring your partnerships begin on solid ground.

🔍 Need to Verify a Chinese Patent?
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