Several Legal Issues In The Intellectual Property Investment Research

Currently, there are several methods in the application of intellectual property rights ("IP right"), which are:the transfer of IP right and licensing, industrialization operation by IP contribution, pledged loan by IP rights, IP trust, and securitization of IP rights. Among such applications, IP contribution is regarded as the foundation and lynchpin for domestic minor enterprises especially those in the technology industry. Nevertheless, there are some conflicting clauses in current domestic legislations, especially in the PRC Law on Chinese-Foreign Equity Joint Venture Law and the PRC Corporation Law, causing more and more disputes, for example, the obligations of IP contribution, assessment, proportion of IP contribution, the risks of IP contributions and etc. Particularly, there are many problems when IP rights are supposed to be registered in the Administration of Industry and Commerce as well as its governing law. The critical procedure of IP contribution is performance of contribution. On the one hand, the administrative process for IP contribution laid equal stress on transfer of delivery while title meanwhile delivery is prevailed. On the other hand, the judicial requirements persist on the principle that the false contribution only exists in case that the actual values is obviously lower than the value as stipulated in the Articles of Association of the company. IP contribution has to satisfy the requirements stipulated in the Corporation Law. In the practice of transfer of EP rights, it has been confirmed and support by the judicial practice. To perfect the risk management of IP contribution, it is necessary to perfect the system of IP contribution, imposing strict exam, and improving the contracts. This essay is going to approach those issues with four parts which followed logic sequence.The first part is focused on the theories of IP contribution, analysis the concepts of IP contribution, its features, the subjects and the corresponding qualification for such contribution.The second part is focused on the relevant foreign legislations, namely Germany, United States of America, and Japan followed by the discussion of Chinese legislation and the recommended improvement.The third part is going to set the patent contribution as example, discussing the necessaries and feasibilities of IP contributions.The forth part is to approach the management of legal risk on Chinese IP contribution and bring some recommended measures forward.