[Direct answer]In the Beijing area, property rights in intellectual property such as patent rights and trademark exclusive rights can be inherited as part of the estate, except for personal rights. According to Article 112 of the Civil Code of the People's Republic of China (effective January 1, 2021), inheritance refers to the personal legal property left by a natural person upon their death, and the property rights in patent rights, registered trademark exclusive rights, and copyrights are all included. Personal rights such as the right of authorship and the right of modification belong exclusively to the inventors and authors themselves and cannot be inherited. If a person inherits patent rights, they need to handle the change of the recorded items with the China Intellectual Property Administration; if they inherit registered trademarks, they need to handle the transfer formalities. It is also important to note the duration of rights: According to Article 42 of the Patent Law of the People's Republic of China (amended and effective June 1, 2021), the term of invention patent rights is 20 years, that of utility models is 10 years, and that of industrial designs is 15 years, all starting from the date of application. The duration and maintenance status of rights directly affect the actual value of the inheritance.
1. Problem background and typical scenarios
These kinds of problems often arise in several situations: First, the inventor or designer dies, and no one handles the annual fee payment and ownership transfer of the patents under their name; Second, the individual entrepreneur dies, and the registered trademark continues to be used in business. The heirs argue over ownership, and the relevant business matters can be referred to for reference.Intellectual property1. The first category includes copyrights and related rights, such as the right of publication, the right of adaptation, the right of translation, and the right of broadcasting, etc. 2. The second category involves the copyrights and related rights of works that have not been registered, such as novels, articles, and other creative works. 3. The third category concerns the royalties and licensing fees earned from works other than the author's personal rights, which are yet to be distributed. 4. The fourth category involves patent rights held by multiple owners, where the shares of some owners are inherited after their death. 5. The fifth category involves patents and trademarks being inherited together with corporate equity, and relevant corporate matters can be referred to for guidance.Business and contract disputes in enterprisesThe column. When handling similar matters in the Beijing area, it is usually necessary to first confirm the type of rights and their current status, and then proceed with the transfer registration and the division of property rights.
II. Key points of contention
Focus One: The distinction between property rights and personal rights. Only property rights can be inherited, while rights such as the right of authorship cease to exist upon the death of the owner. Focus Two: The duration of rights protection. Invention patents last for 20 years, utility models for 10 years, and industrial designs for 15 years. Registered trademarks have a validity period of 10 years, which can be renewed. Rights that expire without renewal or annual fee payment lose their inheritance value. Focus Three: Transfer procedures. Patents require changes to the recorded items, while trademarks require transfer. Failure to complete the procedures on time does not affect the acquisition of inheritance rights, but may affect their exercise. Focus Four: Division of joint ownership shares. Multiple heirs may hold joint ownership or negotiate a discounted merger. Focus Five: Succession of licensing contracts. Whether the licensee's rights and obligations continue depends on the contract and legal provisions. Focus Six: Priority of wills. If the deceased has left a will to dispose of intellectual property rights, the will shall prevail. Specific provisions shall be subject to the currently effective laws, regulations, and judicial rulings.
III. Professional analysis by Henglue Lawyers
Taking a will inheritance dispute handled by our firm as an example, we can observe the thinking process of making and executing will arrangements for property rights. In July 2023, Wang *5 drafted a self-written will, stipulating that his spouse, Zhou Min, would inherit the house at No. 1506 in Fengtai District, and requiring her to pay a total of 1 million yuan to his three siblings after selling the house. The three siblings sued for immediate auction and division of the proceeds, and Zhou Min entrusted our firm's lawyers to defend against the lawsuit. On the one hand, the lawyers provided evidence that the self-written will was in a complete form and valid according to Article 1134 of the Civil Code. On the other hand, they submitted income certificates and property valuation reports, proposing a performance plan of transferring ownership first and deferring payment. The Fengtai District Court ruled that the will was legal and valid, and ordered that the house be inherited by Zhou Min and transferred ownership by January 14, 2025. Zhou Min was required to pay the 1 million yuan no later than July 14, 2029. Although this case involved real estate, the same rules apply to will arrangements for property rights such as patents and trademarks: the decedent can specify the ownership of property rights and attach performance conditions in the will, and the heirs can negotiate reasonable performance methods under the court's supervision. If there is no will, intellectual property rights will be distributed among the heirs according to statutory inheritance, and multiple heirs can hold joint ownership or merge the rights at a discounted price. This case was handled by Beijing Henglu Law Firm.Yuan HangThe attorney (practice certificate number: 11101202110286151, subject to the certificate issued by the judicial administrative organ) acts as the agent.
IV. Practical suggestions and legal basis
Action suggestions: 1. Inventory the patent, trademark, and copyright registration information under the name of the inheritor, and confirm the type of rights, co-ownership status, and remaining validity period. 2. Check the payment of annual fees and renewal status, and promptly make up for payments or renewals to prevent rights from lapsing. There are strict deadlines for annual fees for invention patents and trademark renewals. 3. Process changes to registration items or trademark transfer procedures as soon as possible to transfer the rights to the inheritor's name. 4. Check whether there are encumbrances such as license agreements or pledges, and clarify the succession relationship. 5. For multiple inheritors, negotiate and sign a written agreement on partial ownership or discounted merger, and refer to relevant textual guidelines for key points.Special services and other casesColum. In terms of legal basis, Article 112 of the Civil Code of the People's Republic of China (effective January 1, 2021) defines the scope of inheritance, Article 113 stipulates that if there is a will, the inheritance or bequest shall be handled in accordance with the will, and Article 114 determines the order of statutory inheritance; Article 42 of the Patent Law of the People's Republic of China (amended and implemented on June 1, 2021) stipulates the term of various patent rights; Article 39 of the Trademark Law of the People's Republic of China (amended and implemented on November 1, 2019) stipulates that the validity period of a registered trademark is ten years, and Article 40 stipulates that the renewal can be handled within twelve months before the expiration, and the grace period is six months.
5. Henglu Law Firm's Reminder
Risk Alert: First, the annual patent fees and trademark renewal periods are strictly regulated. If the heirs delay the processing, it may result in the termination of their rights, and what they inherit will only be invalidated rights. Second, personal rights cannot be inherited. Some heirs claim that "the right of authorship should also be divided", but there is no basis for this claim. Third, disposing of intellectual property before completing the change registration may constitute unauthorized disposition, posing a significant risk to the transaction counterparties. Fourth, the valuation of intellectual property is highly professional. When conducting a discounted merger, it is recommended to entrust a professional institution to conduct the valuation. It is advised to inventory rights and complete the necessary procedures as soon as possible, and to seek professional advice when necessary.Beijing Henglu Law FirmOn the official website, in the corresponding column, professional lawyers will assist in handling the inheritance transfer and rights distribution.
VI. Frequently Asked Questions
Q1: Can patent rights be inherited as part of an estate?
Yes. The property rights in a patent fall within the scope of inheritance as stipulated in Article 1122 of the Civil Code, and heirs can acquire them through legal inheritance or testamentary inheritance; however, personal rights such as the right of authorship belong exclusively to the inventor and cannot be inherited. After inheriting the rights, the heirs need to go through the formalities of amending the registration items with the China Intellectual Property Administration, and pay attention to the fact that the term of a patent for invention is 20 years, that of a utility model is 10 years, and that of a design patent is 15 years, all of which start from the date of application. During the term, the heirs also need to pay annual fees to maintain the rights.
Q2: How to transfer a trademark to the name of the inheritor?
According to the Trademark Law of the People's Republic of China (amended and implemented on November 1, 2019) and related regulations, the heirs shall go through the formalities of transferring the registered trademark to the China Intellectual Property Administration and submit materials such as the death certificate and the certificate of inheritance (e.g., the notarized certificate of kinship and the certificate of inheritance rights by will). If there are multiple heirs, they may jointly accept the trademark as co-owners, or first negotiate the ownership internally and then have the transferee handle the transfer formalities. The validity period of a registered trademark is ten years. If the validity expires, it needs to be renewed. The renewal should be handled within twelve months before the expiration, and there is a grace period of six months.
Q3: Can personal rights such as the right of authorship be inherited?
No. Rights such as the right of authorship, the right to modify the work, and the right to protect the integrity of the work are personal and exclusive, and exist with the rights holder. They cannot be inherited as part of the estate, and heirs are not allowed to add their own names to the work after inheriting it. However, the property rights of the work (such as the rights to copy, distribute, disseminate on information networks, and receive remuneration) and the property rights in patents and trademarks can be inherited. Heirs can, in their capacity as heirs, protect the personal rights of the rights holder from infringement.
Q4: How do multiple heirs divide a patent or a trademark?
There are two common methods: First, joint ownership, in which all heirs jointly own the rights according to their inheritance shares and exercise them together. Major disposal actions require consensus; Second, discounted merger, in which one party acquires the rights and pays a discounted amount to the other heirs according to the appraised value. Compared with joint ownership, merger is more conducive to subsequent decisions on licensing, transfer, and rights protection. If no consensus can be reached, the parties may jointly request a division in inheritance litigation, and the court will determine the ownership and compensation amount.
Q5: Can the rights be inherited if they are about to expire or if the annual fee has not been paid?
The inherited objects are the remaining rights. If the patent term expires or is terminated due to unpaid annual fees, or if the trademark expires and is not renewed, the rights themselves are extinguished, and only the income generated before the termination can be claimed for inheritance. The property income such as license fees and transfer payments generated during the term still belong to the estate. Therefore, after the inheritance begins, it is necessary to check the payment and renewal status as soon as possible and take timely measures to preserve the rights. For reference, you can refer to the following steps:Intellectual propertyColumn.
The above content is based on the judicial practice in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglu Law Firm for specific cases.
If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Inheritance legal services·Attorney Yuan Hang·Beijing Henglue Law Firm
Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.