WIPO-IFIA INTERNATIONAL SYMPOSIUM ON THE COMMERCIALIZATION OF PATENTED INVENTIONS

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ORIGINAL: English DATE: August 1996 INTERNATIONAL FEDERATION OF INVENTORS ASSOCIATIONS (IFIA) WORLD INTELLECTUAL PROPERTY ORGANIZATION GENEVA WIPO-IFIA INTERNATIONAL SYMPOSIUM ON THE COMMERCIALIZATION OF PATENTED INVENTIONS jointly organized by the World Intellectual Property Organization (WIPO) and the International Federation of Inventors Associations (IFIA) with the cooperation of the Malaysian Invention and Design Society (MINDS) supported by the Ministry of Domestic Trade and Consumers Affairs, Malaysia Kuala Lumpur, August 18 to 22, 1996 ORGANIZING EXHIBITIONS OF INVENTIONS AND PROMOTING THE COMMERCIALIZATION OF PATENTED INVENTIONS Lecture presented by Mr. Wu Heng, President, China Association of Inventions (CAI)

page 2 Since it was founded in 1985, the China Association of Inventions (CAI) has organized nine national exhibitions to display more than 11,000 inventions, 70% of which received patent protection in China. In addition, the CAI hosted two Beijing international exhibitions with more than 2,200 inventions from China and foreign countries and regions. The exhibitions promoted the inventive-creative activities of the broad masses and accelerated the commercialization of the inventions. Although the significance of inventions is recognized throughout the history of mankind, it is still necessary to organize and publicize them in exhibitions of inventions to promote economic and social development, scientific and technological progress, and the improvement of the working conditions and living environment of the people. The China Association of Inventions has undertaken many activities before, during and after the exhibitions. The major activities include: releasing public information on the time, venue and size of the exhibitions; inviting people from various circles to participate in the exhibitions and to discuss business; publicizing outstanding inventions and inventors during the exhibitions; organizing experts from enterprises to evaluate the exhibited inventions, and so on. These activities were mainly realized by television, broadcast and newspaper coverage. At the National Science & Technology Conference of China, convened by the Government of the People s Republic of China, Mr. Jiang Zemin, President of China, delivered a speech. He said: Bringing forth new ideas is the soul of the progress of the nation. It is the inexhaustible motive force for the growth and flourish of the country. Since the convening of this Conference, more attention has been paid to inventions-creations by the press and media. It was also the first time for CAI jointly with China Central TV Station (CCTV) to organize the inventions-creations television camp in August, 1995. CAI and CCTV will hold a National Inventions-Creations Television Contest from June to December of 1996. Furthermore, CAI created the periodical Inventions and Innovations, giving wide publicity to millions of people and their inventive achievements in a systematic way. The publication exerted considerable public influence and it was chosen as one of the excellent scientific and technological publications of China. The information provided had a positive role in advancing inventivecreative activities in China. 1. Selection and Examination of the Inventions Before the inventions are put on display at the exhibitions, they will be examined at two levels. First, the items must be examined by local associations of inventions. Afterwards, the chosen ones will be sent to the China Association of Inventions (CAI) for further examination and approval. At present, there are local associations in 28 provinces and cities. In the past

page 3 several years, these associations have sponsored more than 100 exhibitions of inventions. Through these exhibitions, highly-rated inventions were recommended for national exhibitions of inventions, which, in fact, served as the selective trials of the inventions. China Association of Inventions examines the chosen inventions in two aspects. First, the items must conform with the governmental decrees concerning state policy, especially the policy relating to pharmaceuticals, food and environment protection. Second, patent examiners are invited to assess the novelty and usefulness of the inventions to ensure that these inventions do not infringe existing patents. 2. Offering Preferential Treatment to the Inventions on Display Made by Primary and Middle School Students, Disabled Inventors, Non-service Inventors and Women Inventors To encourage the inventive-creative activities of primary and middle school students, the costs of their exhibition stands will be exempted. Moreover, a living allowance will be provided to them during the exhibitions and their award-winning rate is 10% higher than that of the adult inventors. In the past nine national exhibitions of inventions, over 660 inventions items made by the students were on display, of which about half won prizes. The exhibition costs of inventions made by disabled persons are exempted as well, and such items enjoy appropriate preferential treatment for award-appraisement. About half of the inventions on display were non-service inventions. Considering the financial problems of the non-service inventors, whose inventions have not yet been commercialized, 10% of the exhibition costs of them were reduced. There are 1,900 women members of the China Association of Inventions. CAI supports their inventive activities and encourages them to participate in the exhibitions. In the past ten years or so, 671 inventions, all of them having women as the first inventors, were on display, which accounted for 7% of the total items on display. Many excellent women inventors won prizes. For example, Ms. Xu Jinhang, Ms. Wang Juzhen and Ms. Liu Huazhen won either gold medals of CAI or the awards for women s inventions provided by the World Intellectual Property Organization (WIPO). 3. Deciding on Awards through Discussion at the Exhibition The appraisement of the inventions on display at the exhibition were carried out independently by the Appraisement Committee, which consists of academicians of the China Academy of Sciences and the China Academy of Engineering, and experts from various circles. Substantial preparation must be done before the appraisement. The preliminary selected inventions were discussed and evaluated secretly by the Appraisement Committee according to the principles of meticulousness and preciseness, justice, and collective discussion. The awardwinning inventions were finally decided by secret ballot. According to the statistics of the national exhibitions of inventions, gold-medal-winning, silver-medal-winning and bronze-medal-winning inventions items took 6.8%, 15.3% and 34.3% respectively of the total inventions on display at the exhibition. Moreover, 13 special

page 4 awards were set up by the public organizations concerned at the China Exhibition of Invention to encourage the inventive-creative activities in their profession, which are as follows: Award Unit 1. Cultivation Award State Education Committee 2. Jinguo Invention Award All-China Women s Federation 3. Youth Cup All-China Youth Federation 4. Chemistry Award Ministry of Chemical Industry 5. Brightness Cup Ministry of Transportation 6. Award of China Technical Workers China Association of Technical Workers 7. China Instrument Award China Association of Instruments 8. Medical Award State Pharmaceutical Administration 9. Medical Instrument Award State Pharmaceutical Administration 10. Children s Invention Award Song Qingling Foundation 11. Youth Award Macao Foundation 12. Youth Award Wang Danping Scientific Foundation 13. Youth Award Guanghua Scientific Foundation These special awards established by government departments and public organizations produced enthusiastic responses in the society and stimulated inventive-creative activities in the various professions. We would like to take this opportunity to thank WIPO and IFIA (International Federation of Inventors Associations). They established the special award for China Exhibition of Inventions to encourage the important inventions and the outstanding inventors, women inventors, youth and children s inventors, which are well received by the public in China, and especially by the Chinese inventors. 4. Technology Trade at the Exhibitions There are two kinds of inventions on display at the exhibitions: one are the new inventions which have not yet been transferred into products; the other one are the inventions which have been transferred into products. The former are mainly involved in technology transfer, and the latter are involved either in product sale or in technology transfer. The delegations participating in the exhibitions from different provinces and cities must play the dual roles in promoting technology exchange and technology trade, either by transferring their own technology, or by purchasing technologies from other parties according to the needs of economic development of their areas. To promote the technology trade, before the opening of each exhibition, CAI usually organized a meeting of staff members of local associations of inventions to circulate information about inventions on display and to ask the staff members to organize the representatives from enterprises to visit the exhibition and purchase useful technologies. We have especially encouraged representatives of enterprises from the provinces

page 5 and cities close to the exhibition site to visit the exhibition, discuss business, and purchase required technologies. Under the guidance of the policy of intellectual property protection to meet the needs of the development of the socialist market economy in the situation of reform and opening to the outside world, the volume of business concerning technologies and new-tech products at the exhibitions organized by CAI has increased sharply and has achieved remarkable success. The total value of technology transfer contracts concluded at the 1987 National Exhibition of Inventions was 0.7 million yuan RMB, and the total sales of the new-tech products were 0.2 million yuan RMB. The total sales for the same kind of products at the 1993 National Exhibition of Inventions reached 206 million yuan RMB, which is 100 times higher than that in 1987. The total value of the technology transfer contracts in 1994 was 160 million yuan RMB, which is 22.8 times higher than that in 1987. According to the present situation, there is a strong tendency of growth of the volume of business at future exhibitions of inventions. 5. International Exchange at the Exhibition CAI holds the international exhibition of inventions every four years. Such exhibitions have been held in 1988 and 1992 with more than 2,200 invention items on display. Associations and inventors from about a dozen countries and regions participated in each exhibition. The volume of business of technology transfer reached 1.02 million yuan RMB and 11.2 million US dollars. In the past ten years, CAI has organized 27 delegations to participate in exhibitions in seven countries. Totally 696 invention items were shown in these exhibitions. Participation in exhibitions in foreign countries can not only exchange technologies but also promote the friendship between inventors in different countries. CAI will hold the Third International Exhibition of Inventions in September of 1996 in Beijing. We warmly welcome associations of inventions and inventors from all countries and regions to come to Beijing for participating in the exhibition. Now China is deepening the reform of the economic system and opening to the outside world. The ninth five-year-plan of China began this year. On the one hand, the major Chinese enterprises are eager to adopt the most advanced technologies of the world to promote steady economic development. On the other hand, China is a huge and rapidly expanding market for new products. Inventors and entrepreneurs from various countries are cordially welcome to come to China for technological and economic trade and cooperation. Invention is the common heritage of mankind. We hope that inventors from different countries may unite, learn from each other, make scientific and technological progress, and share the joy of creative invention as their work promotes the progress of mankind and the improvement of the working conditions and the living standard of the people. Thanks to WIPO and IFIA for organizing this distinguished gathering. Thanks also for the warm hospitality provided by the Malaysian host. Thank you for your attention.

page 6 [Annexes follow]

ANNEX I Statistics of China Exhibitions of Inventions 1. Beijing International Exhibitions of Inventions Time Items on display Gold-medals Silver-medals Volume of business of technology transfer 1988 937 80 154 11 million yuan RMB 1992 1,300 83 260 1,010 million yuan RMB 11.2 million US dollars 2. Items made by Women Inventors at China Exhibitions of Inventions Year 1985 1986 1987 1989 1990 1991 1993 1994 Total Total 347 1,404 861 1,002 1,140 1,193 963 1,302 8,212 Exhibits by women inventors 21 6% 87 6.1% 52 6% 61 6.1% 80 7% 78 6.5% 59 6.1% 99 7.6% 537 6.5% 3. Technology Trade at China Exhibitions of Inventions Time Site Value of technology contracts Value of product sales contracts 1987.9 Changchun City 0.7 million yuan RMB 0.2 million yuan RMB 1989.11 Chengdu City 40 million yuan RMB 0.488 million yuan RMB 1990.10 Tianjing City 4.68 million yuan RMB 26.19 million yuan RMB 1991.10 Xian City 211 million yuan RMB / 1993.10 Shijiazhuang City 106 million yuan RMB 206 million yuan RMB 1994.9 Hsingdao City 160 million yuan RMB /

Annex I, page 2 4. Prizes awarded at China Exhibition of Inventions Time Items on display Prize-awarded items Gold-medals Silver-medals Bronzemedals 2nd Exhibition 1,404 376 83 172 121 3rd Exhibition 861 335 43 119 187 4th Exhibition 1,002 565 48 106 411 5th Exhibition 1,140 642 47 174 421 6th Exhibition 1,193 653 59 182 412 7th Exhibition 963 630 103 205 323 8th Exhibition 1,302 823 158 248 417 [Annex II follows]

ANNEX II Statistics of 1986-1994 Technology Contracts at China Exhibitions of Inventions Year 1986 1987 1988 1989 1990 1991 1992 1993 1994 Items of technology contracts 87,084 131,617 265,017 262,161 206,748 206,966 235,697 245,967 222,356 Value of technology contracts (million yuan RMB) 2,060 3,352.13 7,248.81 8,146.39 7,509.69 9,413.96 15,103.32 20,755.41 22,889.69 Average value of each contract (yuan RMB) 2.365 2.547 2.735 3.107 3.632 4.549 6.408 8.438 10.293 [End of Annexes and of document]