Tengzhou Machinery Manufacturing Co., Ltd. v. Li: Patent Ownership and Director Loyalty
The Supreme People's Court IP Tribunal held that a company director or senior manager may not use his office to transfer a company patent to himself for no consideration. If the transfer was not approved through the procedures required by the articles and cannot be justified as serving the company's interests, it breaches the duty of loyalty, is invalid, and the patent remains with the company.
Holding
The Supreme People's Court IP Tribunal held that a company director or senior manager may not use his office to transfer a company patent to himself for no consideration. If the transfer was not approved through the procedures required by the articles and cannot be justified as serving the company's interests, it breaches the duty of loyalty, is invalid, and the patent remains with the company.