Software copyright in China explained

Software copyright in China in Chinese Law means that a creator or other Obligee enjoys exclusive rights of the software under related copyright law.

It is a civil right and has the common features of all other civil rights. It is an exception in intellectual property rights because it is owned without individual confirmation. This is usually referred to as the principle of “automatic protection”. The owner enjoys the right of publication, authorship, consent to use as well as the right of being paid.

Rights

Significance of registration

1. Served as a significant basis of tax reduction and exemption: According to the relative regulations of Ministry of Finance and State Administration of Taxation, “business tax rather than value-added tax will be collected on the computer software that has been registered by the national copyright bureau when it is sold and copyrighted and ownership is transferred.”

2. Served as a basis to provide protection of the law: According to the related decree of the Council, “copyright administrative department should standardize and strengthen system on software copyright registration, encourage software copyright registration, and provide special protection in law to the registered software”. For instance, when copyright piracy occurs, the certificate of software copyright registration could be used as proof without examination. Also, it serves as a basis in law for national copyright administrative departments against piracy.

3. Served as investment by technology: According to a related regulation, “computer software can be used as investment by high and new technology, and the assessed price beyond 20% defined by Corporations Law and come to 35%.” Some local governments even noticed “100% software technology can be used as investment,” but must register the software copyright first.

4. Served as a basis to apply for technological achievement: According to a related regulation of the Ministry of Science and Technology: “to register technological achievement, one must submit <>, as well. These include the first achievement of applying technology: related evaluation certificate (accreditation, acceptance report, entry qualification certificate, and new production certificate) as well as the report of development. Second, a certificate of intellectual property right (copyright certificate; registration certificate of software) as well as user’s certificate.” Third, a registration certificate of the software refers to the certificate of copyright and software registration. Similar regulations can be found in other Ministries.

5. Served as tangible income if the corporation goes into bankruptcy: Copyright is considered as an “intangible asset.” It disappears when a corporation goes bankrupt. The vitality and value of an intangible asset are still in existence, and the tangible fund could be obtained in the process of transfer or auction. According to the regulation of computer software copyright registration, the time for registration of software copyright refers to the 30 working days after the receipt date.

General provision

Application for registration

Material needed

Review and approval

Software registration announcement

Fees

Supplementary provisions