March 16, the National People’s Congress promulgated the controversial Property Rights Law that will be effective October 1, 2007.
Does this law mention intellectual property law at all? Yes, it does:
Article 223 Property Rights Law: The following rights that a debtor or a third party is entitled to dispose of may be pledged:
under V: The rights to exclusive use of trademarks, the property right among patent rights and copyrights which are transferable according to law;
Article 227 Property Rights Law: Where the right to exclusive use of trademarks, the property rights among patent rights and copyrights are pledged, the pledgor and the pledgee shall conclude a contract in writing. The right of pledge shall become effective upon registration with the administrative department in charge of commerce and industry.
If the property rights in the foregoing paragraph are pledged, the pledgor may not transfer or permit the right to be used by another, unless otherwise agreed by the pledgee and the pledgor. The proceeds from the transfer or license of use obtained by the pledgor shall be used to pay in advance the pledgee’s claims secured or be deposited with a third party.
