Chinese Intellectual Property Right Regime and Independent Innovation of Enterprises Dr. Sun Jian Applied Economic Research Center, Ocean University of China
Outline The Development of Chinese IPR Regime The Achievements China has made in the IP field The limitations of the Chinese IP regime National Innovation Strategy and Efforts Enterprises should Make to Accelerate IP Development Conclusion
Ⅰ. The Development of Chinese IPR Regime 1. Twenty two legal documents have been promulgated referring to the protection of IPR,including laws, regulations,rules and judicial interpretations for the implementation. 2. Since China s entry into the World Intellectual Property Organization, China has joined in international treaties and agreements actively. 3. The cooperation of administrative department for law enforcement and judicial dept. has been enhanced to crack down the crimes.
The Development of Chinese IPR Regime-2 4. China has established: A complete intellectual property legal regime with Chinese characteristics and a law enforcement framework in conformity with international practice. An effective IPR protection mechanism characterized by double protection together with parallel operation. To achieve this, it cost China only 20 years.
Ⅱ. The Achievements China has made in the IP field 1. The number of IP applications such as patent, trademark, copyright applications, software registrations, integrated circuit layout etc. has increased greatly.
Chart 1. Chinese Patent Applications in 2001-2005 500000 400000 Chinese Patent Applications in 2001-2005 300000 200000 100000 Design Utility model Invention 0 2001 2002 2003 2004 2005 Data sources from State Intellectual Property Office of PRC. http://www.sipo.gov.cn
The Achievements China has made in the IP field-2 2. Domestic businesses become the main forces of service patent applications and play a more important role in the IP field.
Chart 2. The structure of domestic service patent applications in 2005 The structure of domestic service patent applications in 2005 13% 6% 1% Enterprises University and academies Research institutes. 80% Organizations Date sources from SIPO of PRC. http://www.sipo.gov.cn
The Achievements China has made in the IP field-3 3. Service applications enjoy a bigger proportion in domestic invention patent applications.
Chart 3. The respective proportions of domestic service and non-service invention patent applications in 2001-2005 The respective proportions of domestic service and non-service invention patent applications in 2001-2005 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2001 2002 2003 2004 2005 Non-service invention applications Service invention applications Data resources form SIPO of PRC. http://www.sipo.gov.cn
Ⅲ. The limitations of the Chinese IP regime 1. Domestic invention patent applications account for a small proportion of the total.
Chart 4. Domestic patent applications in 2001-2005 100% Domestic patent applications in 2001-2005 80% 60% 40% 20% Invention Design Utility model 0% 2001 2002 2003 2004 2005 Date sources from SIPO of PRC. http://www.sipo.gov.cn
Chart 5. Patent applications from foreign countries in China Patent applications from foreign countries in China 100000 80000 60000 40000 20000 Design Utility model Invention 0 2001 2002 2003 2004 2005 Date sources from SIPO of PRC. http://www.sipo.gov.cn
Chart 6. Domestic invention patent applications and foreign invention patent applications in China 2001-2005 Domestic invention patent applications and foreign invention patent applications in 2001-2005 100000 90000 80000 70000 60000 50000 Domestic Freign 40000 30000 20000 10000 0 2001 2002 2003 2004 2005 Date sources from SIPO of PRC. http://www.sipo.gov.cn
The limitations of the Chinese IP regime-2 2. The quality of domestic invention patents should be upgraded. Top three fields: domestic VS foreign patent applications focus on. Traditional medicine Radio transmission Soft drinks VS Mobile communications Food TV systems 3. Chinese enterprises are facing severe challenges when they are involved in the world trade system due to their lack of independent innovation capacity and IP awareness.
Ⅳ. National Innovation Strategy and Efforts Enterprises Should Make to Accelerate IP Development 1. Necessity of the making of the national innovation strategy Chinese enterprises rely on foreign technologies too much due to our lopsided stress on introduction to the neglect of absorption and innovation. The world factory brings China many social problems, in addition to low benefits. Consequently, we must attach much importance to the independent innovation if we must to gain high profits.
National Innovation Strategy and Efforts Enterprises Should Make to Accelerate IP Development-2 2. National Innovation Strategy In October, 2005, Chinese government put independent innovation to the level of national strategy. In January of 2006, The National Medium- and Long- Term Development Plans Program (2006-2020),issued in the National S&T Conference, emphasizing that independent innovation will remain as the strategic basis for the development of science and technology.
National Innovation Strategy and Efforts Enterprises Should Make to Accelerate IP Development-3 3. Efforts Enterprises Make to Accelerate IP Development Further strengthen the realization and awareness of the IPR, and enhance the ability to put the IPR into use. Set up proper organizations for IP management, and equip enterprises with professionals. Strengthen the IPR system construction, and improve the motivation mechanism.
National Innovation Strategy and Efforts Enterprises Should Make to Accelerate IP Development-4 Make full use of the IPR trade market, and set up the IPR market operation mechanism. Speed up the development and utilization of IP information. Bring IPR strategy into the whole process of technology innovation. Pay more attention to protect the trademark and technology secrets. Strengthen the communication and cooperation with the government and trade associations, and answer the lawsuits about IPR actively.
Ⅴ. Conclusion Chinese government has made and will make every effort to improve its IPR regime and practical system to encourage independent innovation. Domestic enterprises should make vigorous efforts to enhance their capacity of independent innovation. Fostering excellent independent brands, which will help turn made in china to innovated in China, making contributions to the economic structure upgrade and overall development to Asia.
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