Jilin unveils stock rights and dividend rules for commercialization of research findings
2014-12-10
Jilin’s provincial government recently unveiled several new stock rights and dividend rules to boost the commercialization of research findings.
The new rules were jointly formulated by the provincial departments of science and technology, finance, education and human resources and social security, as well as the local industrial and commercial bureau, state-owned assets supervision and administration, and taxation bureau.
These rules aim to deepen the implementation of an innovation-led strategy, accelerate the commercialization and industrialization of scientific and technological achievements in the province, and encourage institutions of higher learning and scientific research institutions to build a reward distribution mechanism that helps independent innovation and the transformation of scientific and technological achievements and arouse the creativity of scientific and technological personnel.
According to the rules, institutions of higher learning and scientific research institutions are encouraged to build and improve the rewarding mechanism for invention stock right and dividends and clarify related conditions, procedures, ways and value.
They also encourage companies and inventors to agree on ownership of intellectual property, and to support scientific and technical personnel in establishing scientific and technological enterprises.
The government encourages institutions of higher learning and scientific research institutions to put intellectual property invention, application and implementation into consideration when evaluating and promoting scientific and technical personnel.
The rules make it clear that a company has to give no less than three percent of its operating profit which is a result of a patent to the inventor if a previous bilateral agreement or rule has not been made. No less than 20 percent of the transfer or license fee or investment contribution should be given to?an inventor if their patent is transferred or used by others.
Inventors will enjoy the same right to stock rights and dividends if they end their employment with the company, and their inheritors will enjoy the stock rights and dividends if the inventor has passed away.
The rules can be applied to institutions of higher learning and scientific research institutions in Jilin province. Scientific personnel will have equal access to stock rights, regardless of their employment status and job position. As for the dividends, the candidates are allowed to hold citizenship abroad.
