● “If any patent, with the consent of patent owner, is incorporated into the standard published by the standard makers of state or local authorities or guild and the patent concerned is not disclosed therefrom, which may be seen by the People’s Court as the consent of such patent owner is acquired for the use of such patent for the implementation of the said standard except those used in substantial form. Except the loyalty fee is waived by such patent owner, the novelty and functions of such patent, the technical scopes, characteristics and extent for the use of such standard, as well as any other reasonable factors, shall be considered by the People’s Court for the determination of such loyalty fees.”
[ Interpretation ] In summary, if the standard maker incorporates the patent into the standard without disclosing the same, such patent may be utilized by the standard executor with the payment of reasonable loyalty fees determined by the Court.
● “If the patent and its use conditions have been disclosed in the standard and the user fails to utilize such patent in accordance with such conditions, the requirements of patent owner made to such user for the observation of the conditions shall be supported by the People’s Court, provided, however, if it is found that such conditions are unreasonable, the People’s Court may, at the request of patent owner, make amendments to such conditions correspondingly. If such conditions fail to be disclosed or the conditions disclosed are ambiguous, the Parties concerned may consult with each other for the settlement of the same, if fails, final and binding judgment on such conditions may be made by the People’s Court at the request of either party.”
[ Interpretation ] Standard user shall utilize the patent in accordance with the terms and conditions disclosed in the standard, provided, however, if such terms and conditions fail to be disclosed or are unreasonable or ambiguous, the judicial remedies may be provided at the request of party concerned.
