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Transform China into a powerful intellectual property nation
 Last update:2021-11-09  browse:201 viewed

The State Council issued the Scheme for Protection and Application of National Intellectual Property Rights (IPR) during the 14th Five-Year Plan Period (hereinafter referred to as the Scheme), which has stipulated the guiding ideology, basic principles, main objectives, major tasks, and safeguard measures of the work of intellectual property during the 14th Five-Year Plan and made a comprehensive deployment of intellectual property works in the future five years. This is a concrete "construction map" for the development of intellectual property in the first five years of China's new journey to become a powerful intellectual property nation. It defines eight expected quantitative indicators for future development and forms an overall pattern of intellectual property development featuring creation, protection, and application.

 

Quick look at the content 

The Scheme adheres to the Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as a guide, fully implements the principles of the 19th National Congress and the 2nd, 3rd, 4th, and 5th Plenary Sessions of the 19th Central Committee, advance the Five-sphere Integrated Plan, and advance the four-pronged comprehensive strategy in a coordinated manner. We should adhere to the general tone of steady progress, base ourselves on the new stage of development, implement the new development concept completely, accurately and comprehensively, build a new development pattern, adhere to the theme of promoting high-quality development, take comprehensive strengthening of intellectual property protection as the main line, take building a powerful intellectual property nation as the goal, and take reform and innovation as the fundamental driving force. We will comprehensively improve the level of intellectual property creation, application, protection, management and service, deepen international cooperation in intellectual property, promote the construction of a modern economic system, stimulate the innovation vitality of the whole society, and strongly support high-quality economic and social development.

The Scheme points out that we should adhere to the basic principles of giving priority to quality, strengthening protection, open cooperation and systematic coordination and put forward four main objectives, namely, stepping up intellectual property protection to a new level, making new achievements in the application of intellectual property rights, reaching a new level of intellectual property services, and making new breakthroughs in international cooperation in intellectual property rights. It establishes 8 major expected indicators, such as a "the ownership of high-value invention patents per ten thousand population " and "the number of overseas invention patent authorization". (See Figure 1)

The Scheme also sets up tasks from five respects. First, to boost IPR protection and stimulate the whole society's creativity, authorities should improve related laws and regulations, optimize judicial systems and administrative mechanisms, provide diverse mechanisms to settle the IPR disputes. Second, efforts will be made to optimize institutional mechanisms for IPR transferring and transforming and to enhance the efficiency of IPR transferring and transforming, thus supporting innovative development in the real economy. Third, IPR service systems for the convenience and benefit of people will be established, so that innovative achievements can better serve people's well-being. Fourth, measures will be laid out for international cooperation to serve the development of an open economy, including strengthening overseas assistance in safeguarding IPR. Fifth, talent pools and culture construction in this sector will be advanced so as to lay a solid foundation for protection of China's IPR.

The Scheme ensures the implementation of the objects and tasks from four aspects: strengthening organizational leadership, encouraging exploration and innovation, increasing investment, and paying close attention to the implementation of work. 

 

 

Interpretation of the key points 

Similarities and differences with the 13th Five-Year Plan

In 2017, in order to implement a series of deployments of the CPC Central Committee on intellectual property rights and improve the level of intellectual property protection and application, the State Council issued the Scheme for Protection and Application of IPR during the 13th Five-Year Plan Period, which realized the great development, great leap forward, and great promotion of China's intellectual property work. The 13th Five-Year Plan has set up 10 expected quantitative indicators (see Figure 2), focusing on improving the quantity of all aspects of intellectual property rights in China, putting forward requirements for quantitative change based on the actual situation of China at that time; The 14th Five-Year Plan inherits the spirit of the 13th Five-Year Plan, strengthening the protection of intellectual property rights,  promoting innovative industries to occupy a higher share of the national economy, and speeding up economic transformation. At the same time, compared with the 13th Five-Year Plan, the main index system of intellectual property rights in the 14th Five-Year Plan has two extended indicators, three improved indicators and three new indicators, which put forward higher requirements for the quality and value of intellectual property rights. For example, the index of " the ownership of high-value invention patents per ten thousand population " highlights "high value", which is conducive to guiding the transformation of patents from pursuing quantity to improving quality; The index of "the number of overseas invention patent authorization" replaces the index of "the number of PCT patent application" in the 13th Five-Year Plan period, changing from measuring the number of applications to measuring the number of authorizations, which not only reflects the weak distribution of overseas patents of China, but also puts forward higher requirements for the quality of patent innovation.

 

Focus on quality

The most important feature of the eight indicators involved in the Scheme is that they reflect the quality and value orientation of China's IP development in the next stage. The two indexes, namely, "the ownership of high-value invention patents per ten thousand population" and " the number of overseas invention patent authorization" reflect the transformation from focusing on quantity to improving quality in terms of patent creativity. The four indicators, namely, "the proportion of added value of patent-intensive industries in GDP", "the proportion of added value of copyright industry in GDP", "the registered amount of intellectual property pledge financing", and "the annual import and export amount of intellectual property royalties", put forward requirements for the development of intellectual property from the economic and financial aspects. Increasing the share of GDP requires that patent-intensive and copyright industries become more dynamic and create higher business value. The increase of the annual total import and export of intellectual property royalties indicates that China intends to create a sounder international intellectual property trade environment, optimize the mode and structure of intellectual property import and export, so as to enhance the overseas influence of Chinese intellectual property. Finally, the proposed quantitative standards of "social satisfaction of intellectual property protection" and "the rate of appeal of intellectual property civil cases of first instance" put forward higher requirements for the professionalism of intellectual property practitioners, which is conducive to promoting healthy competition in the industry and thus creating a better working environment.

 

Strengthen the protection

The Guidelines for Building a Powerful Country with Intellectual Property Rights (2021-2035) points out that an IPR protection system supporting a world-class business environment should be built. On this basis, the 14th Five-Year Plan further proposes comprehensively protection of IPR from four aspects: legal policy system, judicial protection, administrative protection and collaborative protection. Six specific projects are also proposed, including trade secret protection, data intellectual property protection, intellectual property protection organization construction, and first-class patent, and trademark examination organization construction.

More than that, on November 1, 2021, the State Council held a routine briefing, the director of the State Intellectual Property Office Shen Changyu said the state intellectual property office will carry on the research and practice of intellectual property protection system in Internet, big data, artificial intelligence, and other new fields and new forms of business and take multiple measures to help emerging the development of new fields in accordance with the 14thFive-Year Plan. 

With the development of new technologies, the Matthew effect in algorithms and big data can easily lead to problems such as monopoly, unfair competition and discriminatory pricing. Specifically, some operators illegally use algorithms and other technical means to do "big data killing", "two to choose one", "reverse brushing" and "illegal capture of data" and other things to infringe on the legitimate rights and interests of the public. By the end of the first half of 2021, market regulation departments in all levels across the country had investigated and handled 3,128 cases of unfair competition in the network field, with fines amounting to 206 million yuan, but similar cases still emerged one after another.

In this case, the Scheme strengthens the protection of IPR from two aspects, which are government supervision and market regulation and specially highlights the protection of new fields and new forms of business from four directions. First, it proposed patent examination rules for the Internet, big data, artificial intelligence, and other new fields. Second, promoting the implementation of data intellectual property protection projects, exploring data intellectual property protection legislation research, and speeding up the establishment of data intellectual property protection rules. Third, strengthening the protection of IPR on the Internet and promoting integrated development of IPR protection online and offline. Fourth, promoting international cooperation on IPR protection and supporting the World Intellectual Property Organization (WIPO) as the main platform for formulating international rules in relevant fields.

 

Advance the conversion

Patent transformation helps to permeate technology into every aspect of product manufacturing and industrial operation, which can improve the efficiency of overall industrial operation and industrial competitiveness. Since the 13th Five-Year Plan, the statue of China's patent implementation is generally stable, and the awareness of patent layout is good. However, with the significant increase of patent output in China, the patent conversion rate has not been improved synchronously. In practice, the problem of patent conversion is still difficult, especially in universities and scientific research institutions, where the patent application rate is low, and the conversion willingness is weak. Among them, information asymmetry and limitation of system and mechanism are the important reasons that restrict the effective implementation of patent right.

The conversion and application of patents requires effective market to meet the cooperation intention of patent creators and technology demanders, requires protection and incentive of intellectual property related system, and requires flexible cooperation mechanism to cope with the uncertainty in transformation.

In practice, the first step is to improve the market credit system and create a healthy and vigorous environment for patent conversion. Good market credit can reduce technology transaction costs and conversion barriers, guide R&D personnel to explore more patent achievements with market value, and thus form the driving force of economic development. The establishment and implementation of punitive compensation system for intellectual property infringement proposed in the 14th Five-Year Plan increases the cost of patent infringement, not only protecting patents, but also indirectly promoting the creation of a good credit market for intellectual property.

Second, we should actively promote the reform of distribution of rights and interests. The director-general of the Office for Intellectual Property Rights Application and Promotion of the CNIPA Lei Xiaoyun said, the Scheme will further promote the reform of state-owned distribution of intellectual property rights, improve the system of intangible assets evaluation, fully give universities and research institutes intellectual property disposition of autonomy, promote the establishment of the rights and obligations equivalent intellectual property income distribution mechanism, and  improve the decision-making mechanism for the transfer and conversion of intellectual property rights in state-owned enterprises and public institutions.

According to the Scheme, the CNIPA will also work with the Ministry of Education to build national pilot and demonstration universities for intellectual property rights, encouraging universities to take the lead in the reform of intellectual property rights allocation to further improve the allocation policy and incentive mechanism.

 

Promote the opening-up

Making new breakthroughs in international cooperation on intellectual property is one of the main goals of the Scheme. How to promote international competition and cooperation in the field of intellectual property is one of the important tasks to be addressed by the Scheme.

The world today is undergoing profound changes unseen in a century. The COVID-19 pandemic is ravaging in many countries, the international situation is complex and volatile, and the global innovation landscape is being reshaped. Intellectual property is playing a more prominent role as strategic resources for national development and as a core element of international competitiveness. The new round of scientific and technological revolution and industrial transformation, while bringing profound changes to the economy and society, have also brought new challenges to the international rules on intellectual property and global governance system.

At the same time, China is undergoing the transformation from a big country with intellectual property rights to a powerful country with intellectual property rights. How to improve the security of the national industrial chain and supply chain through scientific and technological innovation, how to meet the people's growing needs for a better life, and how to coordinate the relationship with other countries are all urgent problems and challenges to be solved.

The Scheme lays out three measures for international IPR cooperation, namely, taking the initiative to participate in global IPR governance, improving the level of international IPR cooperation, and strengthening international cooperation on the protection of IPR. Specifically, that is, to strengthen the cooperation and consultation with the WIPO, to participate in the formulation of international intellectual property rules and standards, to strengthen the construction of international cooperation mechanism for intellectual property rights, to improve the cooperation layout, to support the construction of capability of intellectual property rights of developing countries, to establish a mechanism for risk warning and emergency solving of international intellectual property, and to establish a system involving foreign risk prevention and control of intellectual property rights. 

 

Conclusion

General Secretary Xi Jinping has pointed out that to fully build a modern socialist country, we must comprehensively strengthen the protection of intellectual property rights, promote the building of a modern economic system, stimulate the creativity of the whole society, and advance the construction of a new development pattern. The release of the Scheme for Protection and Application of IPR during the 14th Five-Year Plan Period is a concrete construction drawing for the development of Intellectual property rights in China in the next five years and is also a strong support for building a modern socialist country in an all-round way. It is closely linked with the outline of the 14th Five-Year Plan and the top-level design of various fields, and deploys a series of important goals and tasks, which not only points out the direction of the development of intellectual property rights in China, but also provides strong support for the high-quality development of national economy.