Economy

Foreign firms in quandary over new secrets clause

By Wang xin (China Daily)
Updated: 2010-05-05 11:16

SIPO: Requirement in line with international norms

A confidentiality clause in the nation's latest intellectual property law designed to protect China's national security has raised concerns among foreign companies, but it is in line with international practices, according to a senior official of the State Intellectual Property Office (SIPO).

"A confidentiality screening is a common regulation in patent administrations in various nations," SIPO commissioner Tian Lipu said at a recent meeting to solicit opinions and suggestions from foreign embassies, overseas organizations and foreign-invested companies.

"It is not beyond international rules."

Since the amended patent law took effect in October, 2009, new and revised provisions have aroused concern among many foreign organization and investors.

Confidentiality clauses in the new patent law raised a barrage of questions from foreign participants.

The amended law requires entities and individuals to apply to a patent administration under the State Council and receive a confidentiality approval before filing an application on an overseas invention or utility model patent for works created in China.

Under the previous legal framework only Chinese applicants were subject to the confidentiality screen. The new amendment put all applicants for overseas patents under the same procedures without regard to nationality, said Dong Zheng, chief of the SIPO legal affairs division.

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