Utility Model System in China. Christopher Shaowei NTD Intellectual Property Attorneys

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1 Utility Model System in China Christopher Shaowei NTD Intellectual Property Attorneys

2 Statutory Subject Matters Protected by Patent Laws Invention Patents: 20 years Manufactures Machines Processes Computer-related Invention and Business Method Compositions Utility Models ( comparing with Gebrauchsmuster ) : 10 years Manufactures (Products) Machines Design Patents: 10 years Shapes Patterns Colors with the combination of shape and/or pattern Copyright NTD Intellectual Property Attorneys

3 Overviews of Patent Applications in China ( ) Source :

4 Amount of Effective Utility Models in China until 2014 Sources : /P pdfs

5 A Utility Model Infringement Case

6 A Utility Model Infringement Case July 2006, Chint accused Schneider Electric of infrigment of its one of utility model patents. April 2007, Chint s utility model patent was confirmed valid by Reexamination Board of Chinese Patent Office September 2007, Schneider Electric lost the patent infringement lawsuit and was ordered to pay $48 million in damages. April 16, 2009, Schneider settled the case by the payment of $22 Million

7 Top Ten Foreign Countries Japan 9960 US 6663 Germany 2481 Korea France Switzerland UK Virgin Island Itdly Sweden

8 Top Ten Foreign Enterprises Ford 619 Panasonnic 578 Siemens Molex Mitsubishi Brother Apple ABB Seiko EPSON Samsung

9 Top Ten Local Enterprises State Grid PetroChina Gree BYD Midea Sino Chem Wisco Baosteel Beiqi Foton Jianghuai Auto

10 Statutory Procedural Advantages which are not Possessed by the Invention Patent System

11 Patentable Subject Matters Utility Models Invention Patents Manufactures YES YES Machines YES YES Processes NO YES Compositions NO YES

12 Prosecution Procedural Advantages Utility Models Invention Patents Substantive Examination Filing -Granting Costs of Prosecution No Short: year Filing Fee: RMB500 Annuity: 1 st --3 rd : RMB600/year 4 th -6 th : RMB900/year 7 th -9 th : RMB1200/year 10 th : RMB2000/year Yes Long: 2-4 years Filing Fee: RMB950 Annuity: 1 st -3 rd : RMB900/year 4 th -6 th : RMB1200/year 7 th -9 th : RMB2000/year 10 th -12 th :RMB4000year

13 Criterion for Inventive Step Utility Models Inventions Prior Art s Technical Fields to be considered Amount of Prior Art to be combined Claims under the Same Invention Same Claims under the Same Invention Same At most two pieces Broad More Stable Same Similar, close or relevant No limitation Narrow Stable

14 Post-Procedures After Prosecution Utility Models Invention Patents Quasi-Substantive Examination Invalidation Procedure Yes 1-Instance Final 2 months: must finish within 2 months. Ex Parte No Difference No

15 Protection Period Utility Models Invention Patents 10 Years 20 Years

16 Distribution of Lifespans of Utility Models in China

17 Invention Patents vs. Utility Models Invalidated Rate for Utility Models Invalidated Rate for Inventions 40% 12% 48% Total Valida Partially Valid Invalid 42% 13% 45% Total Valida Partially Valid Invalid

18 Advantages in Civil Infringement Procedures Criterion of Establishment of Infringement Doctrine of Equivalence Calculation Methods of Damages Utility Models No Difference No Difference No Difference Invention Patents

19 Inventions vs. Utility Models Inventions vs. Utility Model A Most Recent Case Nande vs.geebon

20 Thanks Christopher Shaowei NTD Intellectual Property Attorneys Tel:

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