Category Archives: law

Understanding Inventions and Utility Models in the Workplace

Innovation plays a crucial role in today’s fast-paced work environment, and employees often create new inventions or utility models as part of their job. But who owns these intellectual property rights—the employee or the employer? Let’s explore the key aspects of workplace inventions and utility models based on employment conditions.

What Qualifies as a Workplace Invention or Utility Model?

Not all inventions automatically belong to the employee who created them. The following conditions determine whether an invention or utility model is considered a workplace creation:

  1. The invention is developed by an employee as part of their job responsibilities outlined in their employment contract.
  2. The invention results from work-related tasks assigned by the employer.
  3. The invention is created using the employer’s resources, such as technology, equipment, raw materials, proprietary information, or expertise.

Employee’s Duty to Inform the Employer

If an employee develops an invention or utility model that meets the above conditions, they must notify their employer in writing as soon as possible. This step ensures transparency and allows the employer to decide on the next course of action.

Who Holds the Patent Rights?

The patent rights depend on the employer’s decision following notification from the employee:

  • If the employer decides not to file for a patent or fails to do so within three months, the patent rights transfer to the employee.
  • If the employer wishes to obtain a patent, they must sign an agreement with the employee (unless the employment contract already assigns this responsibility to the employee in exchange for appropriate remuneration).

When an employer patents an invention or utility model developed in the workplace, they must compensate the employee fairly. Within six months of obtaining the patent (or within one year if the invention has already been in use before patent approval), the employer must:

  • Sign a contract with the inventor-employee.
  • Define payment terms, amount, and procedures for compensation.
  • Consider factors such as the invention’s economic value, potential profits, and contributions from both the employer and the employee.

If an employer fails to finalize a compensation contract, the employee has the right to take the matter to court to determine a fair payment rate and enforce contract execution.

In all other cases not covered by the above conditions, the patent rights remain with the inventor-employee, allowing them to enjoy full ownership and control over their invention or utility model.

Workplace inventions and utility models are valuable assets that benefit both employees and employers. While companies provide the resources and platforms for innovation, employees contribute their skills and creativity. Understanding the legal framework ensures fair recognition and compensation for all parties involved.

If you are an employee or employer dealing with workplace inventions, it’s always a good idea to seek legal advice to navigate the process smoothly. Our professional IP agent will assist you.

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Understanding the Examination Process for Trademark Applications

Navigating the trademark application process can feel daunting, but understanding each step can make it smoother. Here’s a breakdown of the procedure, as outlined by the State Administrative Authority in accordance with the Law on Trademarks and Geographical Indications.

The process begins with the examination of the completeness of your application. The authority checks if all required documents are in order and establishes the initial filing date. Therefore, the State Administrative Authority examines the completeness of the trademark application and establishes the initial filing date in accordance with the Law on Trademarks and Geographical Indications. Afterward, the authority evaluates whether the trademark meets the legal requirements and provides a conclusion.

The State Administrative Authority conducts this examination within nine months of the initial filing date. If deemed necessary, this period may be extended by up to six months.

If the trademark is found to meet the legal requirements, the State Administrative Authority issues a conclusion to that effect and, based on it, decides to register the trademark in the state registry.

If the trademark is found not to meet the legal requirements, the authority issues a conclusion to that effect and makes a preliminary decision to refuse the registration, notifying the applicant accordingly in written.

If the applicant disagrees with the preliminary decision to refuse registration, they must submit a reasoned response to the State Administrative Authority within three months of receiving the decision. If the applicant has valid reasons, they may request an extension of up to three months, subject to payment of service fees.

The State Administrative Authority makes a final decision on whether to register the trademark within three months of receiving the applicant’s response.

If the applicant fails to provide a response within the prescribed period, the administrative authority makes a final decision to refuse the registration and notifies the applicant in written.

During the examination, the applicant may introduce changes to the application, except for altering the trademark itself. If adding new goods or services to the classification, a new application must be submitted.

The applicant may also separate an application covering multiple classes of goods or services into individual applications during the examination process.

Interested parties may file an opposition to the trademark application within three months of its initial publication, in accordance with the Law on Trademarks and Geographical Indications. This period may be extended by up to two months upon request, subject to payment of service fees.

The applicant may submit responses or counterarguments to the State Administrative Authority directly or through an intellectual property representative specified in the Article 16.2 of the Law on Intellectual Property.

The State Administrative Authority delivers notifications to the applicant either in paper form or electronically.

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Tax Incentives for Businesses Operating in Free Zones in Mongolia: What You Need to Know

Are you considering investing in a free zone? The benefits can go beyond logistical advantages—there are tax incentives you might be eligible for, depending on the nature of your business and your investment scale. Let’s explore the opportunities outlined in the Corporate Income Tax Law and how they can work for you.

What Are Free Zones?

Free zones are designated areas where businesses can operate under special regulations designed to encourage investment, innovation, and trade. To support economic development, many governments offer tax reliefs to incentivize investments in infrastructure and key facilities within these zones.

Tax Relief: How It Works

Under Article 22.5 of the Corporate Income Tax Law, businesses operating in free zones can enjoy significant tax breaks if they meet one of the following conditions:

1. Investing in Free Zone Infrastructure

If your business has invested $500,000 USD or more in critical infrastructure, such as:

  • Energy and heating systems
  • Pipelines and clean water supply
  • Sewage systems
  • Roads, railways, or airports
  • Communication networkss

Then, 50% of the income you earn from the free zone—equal to the amount of your investment—will be exempt from corporate income tax.

2. Investing in Specific Free Zone Facilities

If your investment focuses on constructing or developing:

  • Warehouses
  • Loading and unloading terminals
  • Hotels or tourism complexes
  • Factories producing export-oriented or import-substituting products

And your investment totals $300,000 USD or more, you’re also eligible for a tax break. Similar to infrastructure investments, 50% of your income from the free zone—up to the value of your investment—is exempt from corporate income tax.

Beyond the tax incentives, free zones offer:

  • Easier access to global markets
  • Streamlined customs procedures
  • Modern infrastructure tailored for business operations
  • Networking opportunities with like-minded entrepreneurs

These advantages make free zones a hotspot for businesses aiming to expand regionally or globally while optimizing costs.

Seed Industry Law: Building a Sustainable Future for Mongolia’s Cultivated Plants

The Seed Industry Law of Mongolia is a critical legislative framework that governs the development and sustainability of the seed industry for cultivated plants. This law fosters innovation, supports fair trade, ensures food security, and protects genetic resources by regulating everything from the creation of new plant varieties to seed trade and quality control.

The law is designed to cover all aspects of seed industry development, from research and innovation to seed propagation and sale. It applies to both domestically produced and imported seeds of cultivated plants, ensuring that the genetic resources and biodiversity are maintained and that the rights of plant variety creators are protected.

Key Definitions Under the Law

  • Seed: Defined as living seeds, implants, seedlings, embryos, and reproductive organs used for the reproduction of cultivated plant varieties.
  • Variety: A group of plants within a botanical community that are distinguished by the expression of stable characteristics resulting from specific genotypes and their combinations.

Areas of Regulation

The law encompasses various aspects of seed industry regulation, including:

  1. Seed Production: Encouraging the sustainable and efficient production of seeds.
  2. Seed Quality Control and Assurance: Mandating strict control over seed quality to ensure that only high-quality seeds reach the market.
  3. Seed Trade: Regulating the trade of seeds to foster fair competition and protect the rights of traders and consumers.
  4. Registration of Varieties: Implementing a structured process for registering new plant varieties, allowing for the protection of intellectual property rights of plant breeders.
  5. Protection of Cultivated Plant Varieties: Safeguarding the innovations and efforts of variety creators by granting them exclusive rights and ensuring the sustainable use of cultivated plant genetic resources.

Government Involvement

At the national level, the implementation and management of seed-related policies are overseen by the state central administrative body in charge of agricultural matters. Local farming departments and agricultural units play key roles in administering these policies within their respective regions, ensuring consistency in the enforcement of quality standards and fostering the growth of the seed industry.

By establishing a legal framework for seed production, quality control, and innovation, Mongolia is building a robust foundation for agricultural sustainability, food security, and economic growth in its farming sector.

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