Research On Legal System Of Patent Conversion Trust

Patent conversion trust refers to the legal relationship in which the patentee transfers the patent right and its derivative rights to the trustee based on trust in the trustee,and the trustee uses the trust function to realize the patent conversion and manage or dispose of the patent for the benefit of the beneficiary or for a specific purpose in its own name in accordance with the wishes of the trustee.The patent conversion trust system can give full play to the advantageous role of trust in property management,and has the function of awakening dormant patents and providing financing funds and equity protection for patent conversion.It is an effective strategy to solve the difficult problem of patent achievement transformation in China.However,there are still some problems in China’s existing patent transformation trust system,such as the lack of effective elements,the omission of operation norms,the imperfect external supervision system and the imperfect beneficiary relief mechanism.Through the organic combination of patent transformation and trust,the patent transformation trust system can provide a market-oriented operation channel for patent transformation,improve the scale and efficiency of patent financing,and prevent the opportunistic behavior of the trustee.By learning from the beneficial practical experience of the patent transformation trust system in the United States and Japan,this paper explores the construction of a patent transformation trust system in line with China’s national conditions,so as to meet the needs of patentees for patent transformation channels,financing and protection of rights and interests.This article main content is as follows:The first part explores the function of trusts in bridging the gap in the field of patent transformation by clarifying the existing problems of China’s patent system.The trust system provides a professional way for patent inventors to manage their patents,and inventors who lack experience in patent management are still able to realize patent transformation by the hands of professional trustees.The patent investment trust model broadens the patent financing channels and ensures sufficient funds in the process of patent transformation.At the same time,the trust,with its unique independence of trust property,isolates the risk of debt recovery by creditors of any subject in the trust relationship and enhances the security of the patent conversion trust property,thus reflecting the regulatory function of the trust in the patent conversion system.The second part explores the institutional dilemma of developing patent conversion trusts in China.First of all,China’s Trust Law lacks provisions on the transfer of control of patents,and the registration system of patent conversion trusts is also flawed,resulting in the inability of patent conversion trusts to meet the effective elements of "transfer of control + registration and publicity".Secondly,there are deficiencies in China’s trustee licensing system,and the provisions of the trustee’s human rights and responsibilities system are incomplete.Thirdly,the external supervision of patent conversion trusts is insufficient,and there is a lack of a way to supervise the trust inspector and the absence of a special supervision department responsible for patent conversion trusts.Finally,the determination of the nature of the beneficiary right of patent conversion trust in China is still controversial,and the beneficiary’s right of revocation has limitations in concrete practice.The third part mainly examines and compares the patent conversion trust systems in the United States and Japan for reference.The U.S.patent conversion trust has developed mainly in the form of patent asset securitization,and its trust legislation,operation specification,trustee supervision and beneficiary relief system have developed into a mature system.Japan’s patent conversion trust system provides a mirror image for China in terms of policy support,cooperative operation and external supervision.The fourth part expounds the suggestions on the construction of patent transformation trust system in China.First of all,the Trust Law of China should clearly stipulate "transfer of control + registration" as the effective element of patent conversion trust.The State Intellectual Property Office should be the registration authority,and the applicant and the content of the registration should be clearly defined.Secondly,a trustee licensing system should be established to relax the restrictions on the trustee of patent conversion trusts to license third parties to handle trust affairs.The Trust Law should strengthen the basis for the trustee’s exercise of authority,add provisions on the trustee’s duty of care,and clarify the consequences of the trustee’s breach of fiduciary duty.Thirdly,there is a need to establish an external monitoring mechanism for patent conversion trusts,with the trust monitor and the trust supervisor jointly responsible for the monitoring of patent conversion trusts.Finally,we should improve the relief mechanism for beneficiaries of patent conversion trusts.The beneficiary’s right to benefit should be recognized as a right in rem,and a constructive trust should be introduced as a supplementary remedy.