No. 39

The Measures for the Reduction or Postponement of the Payment of Patent Fees have been constituted in accordance with Article 98
of the Detailed Rules for the Implementation of the Patent Law of the People’s Republic of China. They are hereby promulgated and
shall go into effect as of November 13, 2006.
Tian Lipu, Director of the State Intellectual Property Office

October 12, 2006

Measures for the Reduction or Postponement of the Payment of Patent Fees

Article 1

These Measures are specially constituted under the provisions of the Detailed Rules for the Implementation of the Patent Law of the
People’s Republic of China and related documents.

Article 2

In case an applicant or a patent owner has any difficulty in paying the relevant patent fees, it/he may apply with the State Intellectual
Property Office (hereinafter referred to as the SIPO) for reducing or postponing the repayment of relevant fees under these Measures.

Article 3

Upon approval of the SIPO, the following patent fees may be reduced or postponed,

(1)

application fees (wherein the printing expenses for announcement and application surcharges may not be reduced or postponed);

(2)

application examining fees for invention patents;

(3)

annual fees (within 3 years since the year when the patent right is authorized);

(4)

application maintaining fees for invention patents; and

(5)

reviewing fees.

Article 4

If the applicant or patent owner is an individual, he may apply for reducing or postponing the payment of 85 % of the application
fees, application examining fees for invention patents and annual fees as well as 80% of the application maintaining fees for invention
patents and reviewing fees.

If the applicant or patent owner is an entity, it may apply for reducing or postponing the payment of 70 % of the application fees,
application examining fees for invention patents and annual fees as well as 60% of the application maintaining fees for invention
patents and reviewing fees.

Where two or more individuals or any individual and entity jointly apply for a patent, they may apply for reducing or postponing the
payment of 70% of the application fees, application examining fees for invention patents and annual fees as well as 60% of the application
maintaining fees for invention patents and reviewing fees.

Where two or more entities jointly apply for a patent, no patent fee may be reduced or postponed.

Article 5

The patent applicant may apply for reducing or postponing the payment of 5 kinds of fees as prescribed in Article 3 of these Measures
when applying for a patent. After the SIPO accepts his application for patent, the application fees may not be reduced or postponed
any more. The applicant or patent owner may only apply for reducing or postponing the payment of fees not yet due, and shall apply
for reducing or postponing the payment of fees 2 and a half months before the expiration of the term for fee payment.

Article 6

When applying for reducing or postponing the payment of patent fees, the applicant or patent owner shall submit an application for
the reduction or postponement of the payment of patent fees, to which relevant certification documents shall be attached when it
so requires.

The Application for the Reduction or Postponement of the Payment of Patent Fees shall be affixed with the signatures or seals of all
applicants or patent owners.

Article 7

When applying for the reduction or postponement of the payment of patent fees, the individual shall faithfully fill in his annual
income in the application for the reduction or postponement of the payment of patent fees, and shall, when it so requires, submit
the certification on his economic difficulties produced by the competent department of patent of the people’s government at or above
the municipal level in light of the requirements of the SIPO.

Where two or more individuals jointly apply for reducing or postponing the payment of patent fees, they shall respectively and faithfully
fill their annual incomes in the application for the reduction or postponement of the payment of patent fees, and shall, when it
so requires, submit the certification on their economic difficulties produced by the competent department of patent of the people’s
government at or above the municipal level in light of the requirements of the SIPO.

When applying for reducing or postponing the payment of patent fees, an entity shall faithfully fill its economic difficulties in
its application for the reduction or postponement of the payment of patent fees, to which the certification as produced by the competent
department of patent of the people’s government at or above the municipal level shall be attached.

Where an individual and an entity jointly apply for reducing or postponing the payment of patent fees, the individual shall faithfully
fill his annual income in the application for the reduction or postponement of the payment of patent fees, and the entity shall fill
in its economic difficulties, to which the certification produced by the competent department of patent of the people’s government
at or above the municipal level shall be attached.

It shall be indicated in the certification produced by the competent department of patent of the people’s government at or above the
municipal level that the nature of the entity applying for reducing or postponing the payment patent fees is an enterprise, public
institution or organ as well as the conditions on its economic difficulties.

Article 8

After receiving an application for the reduction or postponement of the payment of patent fees, the SIPO shall undertake an examination
and make a decision on whether or not to approve it, and inform the applicant or patent owner of its decision to.

Article 9

Under any of the following circumstances, the application for reducing or postponing the payment of patent fees may not be approved:

(1)

where the application for the reduction or postponement of the payment of patent fees as constituted by the SIPO fails to be used;

(2)

where any of the applicants or patent owners fails to attach his/its signatures/ seals on the application for the reduction or postponement
of the payment of patent fees;

(3)

where any entity or individual that has filed an application for reducing or postponing the payment of patent fees fails to provide
relevant certification that satisfies the requirements of the provisions of Article 7 of these Measures;

(4)

where the annual income of an applicant or patent owner exceeds 25, 000 Yuan.

(5)

where the individual incomes of all the applicants or patent owners failed to be fully indicated in the application for the reduction
or postponement of the payment of patent fees;

(6)

where there are two or more applicants or patent owners; or

(7)

where the name of any applicant or patent owner indicated in the application for the reduction or postponement of the payment of patent
fees is inconsistent with that in the application for patent.

Article 10

The applicant shall, within the time limit as prescribed in the Patent Law as well as the Detailed Rules for Implementation thereof,
pay the relevant fees in full amount. Where any application for the reduction or postponement of the payment of patent fees is approved
by the SIPO, the amount of payment shall be the remnant sum after reduction or postponement.

Article 11

Where any decision on reducing or postponing the payment of patent fees is made yet the SIPO finds any mistake in this decision,
it may correct it by itself and inform the relevant applicant or patent owner of the corrected result.

Where any applicant or patent owner submits any false information or document when applying for reducing or postponing the payment
of patent fees, the SIPO shall, upon verification, revoke its decision on the application for reduction or postponement of the payment
of patent fees, and inform the relevant applicant or patent owner of making up the reduced or postponed fees within a designated
term. Where any party concerned fails to make up the expense or fails to make the full payment, the SIPO shall impose relevant punishment
under law.

Article 12

The applicant or patent owner, after obtaining the relevant economic benefits generated from his invention, shall make up the payment
of patent fees that have been reduced or postponed.