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Decade after Strategy Implementation, Different Look of IPR Protection in China

Date:2018-06-27  Author: Lian & Lien

Source: China IP News


On June 5 ten years ago, the Outline of National Intellectual Property Strategy was released and implemented. From that moment, IPR was prioritized to the level of national strategy and thus a magnificent journey concerning the future and wellbeing of the nation and its people was unfolded.


During the past ten years in particular since the 18th National Congress of the Communist Party of China, the CPC Central Committee with Comrade Xi Jinping at its core has looked far and aimed high, sized up the trend of events, made a series of far-sighted strategic deployment of IP work and therefore guided the IPR undertakings to make historic achievements. Countless inventors, innovative enterprises realized their dreams of growing rich and advancing their own businesses through the use of IPRs. Innovation and creativity in the society has been spurred with products made in China with wisdom being introduced into the world at a fast pace. The IPR system has shown unprecedented vitality, creativity and influence in the area of economy, politics, culture, science and technology.


In the past ten years, the working system on the implementation of nation IP strategy has been established under the leadership of the State Council with unified deployment of the Inter-Ministerial Meeting for the implementation of national IP strategy. It is a system requiring division of duties and coordination of all departments and all regions. The office of Inter-ministerial Conference has formulated and released the Promotion Plan for the Implementation of National IP Strategy for nine consecutive years to make a unified deployment on strategy-related tasks.  Most provinces, municipalities and cities have set up their own version of command centers for the formulation or implementation of IP strategy.


In the past ten years, China has seen remarkable progress in the implementation of IP strategy. Both the quality and quantity of IP creation have improved, securing the status of a sizable IP country. The number of patent applications and grants increased rapidly with respective annual average growth rates of 19.56% and 21.29%. The number of domestic valid invention patents rose from 96,000 in 2007 to over a million in 2017. The number of patents owned by per 10,000 people increased from 0.6 in 2007 to 9.8 in 2017. The number of valid registered trademarks increased from 2.353 million in 2007 to 14.92 million in 2017, pacing the world for 16 years in a row. The number of copyright registrations across the nation grew from 138,000 in 2007 to 2.748 million in 2017. The number of copyright registration of computer software exceeded 700,000. As revealed in the 2017 Global Innovation Index released by WIPO, China rose to No. 22 in global innovation index and was the only middle-income economy in the top 25.


China's IP protection has improved significantly while the enthusiasm for innovation and entrepreneurship has been further stimulated. From 2008, the National People's Congress (NPC) and the standing committee of the NPC amended IP laws including Patent Law, Trademark Law and Copyright Law. In sync with these revisions, the State Council amended implementation rules of these laws. China has established an IP system conforming to the international rules and norms covering all areas. Judicial and administrative protection of IP has been completely reinforced. The landscape of IP protection featuring stringent, grand, fast and impartial protection has been gradually established.


In the past ten years, China has seen remarkable progress in the implementation of IP strategy.The number of IP cases of first instance heard by courts at all levels increased from 22,000 in 2007 to 200,000 in 2017. As of the end of 2016, a total of 31,500 enterprises had passed the check on installation of authorized software in their working computers. All the headquarters of 102 central state-owned enterprises realized the usage of authorized software while 97.36% of their subsidiaries and 70.15% of Chinese financial institutions followed suit. As a result, rampant tendency of piracy of software, films and television programs is contained, greatly improving the business climate. Foreign applications for invention patents in China keep growing, with a bunch of multinational enterprises established R&D centers in China. China has become a significant part in global innovation and IPR serves an important bridge for China to promote international innovation and trade cooperation.


IPR awareness among the public has been improved remarkably while the social morals of respecting and protecting IPR have taken shape. The rate of the public knowledge of IP strategy increased from 3.7% in 2008 to 85.3% in 2017.


Benefit of IP application is rising constantly. From 2009 to 2016, the number of patents assignments increased from 34,000 to 155,000, and the number of trademark assignments nationwide increased from 72,200 to 168,900. The number of patent financing increased from 7.46 billion in 2009 to 72 billion in 2017. From 2008 to 2017, the amount of trademark pledge raised from 5.119 billion to 36.9 billion. During the "12th Five-year Programme" period, the total amount of copyright financing rose to 13.648 billion.


A batch of essential intellectual properties were formed and commercialized in a series of pillar industries of the national economy and emerging industries of strategic importance, such as new-generation mobile communications, high-speed trains, UHV transmission and nuclear electricity, which supported the industries in stepping towards the high end. The grant and protection of geographical indication products has become an important force in promoting the development of modern agriculture and enabling farmers to get rich. Cultural and creative industries boom under the protection of copyright. Meanwhile, Chinese works step into oversea cultural markets in a faster and more steady fashion.


International influence of IP is enhanced prominently. China has signed up to 171 bilateral and multilateral cooperation agreements and memorandums of understanding with 63 countries, regions and international organizations, and established formal cooperative relationships with 50 members of the World Intellectual Property Organization (WIPO). Actively promoting the establishment of cooperation mechanism among IP institutions from countries and regions along the 'Belt and Road', China concluded an agreement to work together with WIPO in this area when WIPO Director General Francis Gurry was invited to an international cooperation forum of the relevant countries in 2007.