Policy digest

A guideline draft was issued by the State Council on Thursday to more tightly regulate the transfer of domestic intellectual property rights to foreign buyers.

The guideline aims to improve national security systems to safeguard the State's safety and public interest as it regulates overseas transfers of IPR, according to a statement issued on the State Council website. The document listed an investigation mechanism that covers external transfers of IPR such as patent rights, exclusive rights to layout designs of integrated circuits, computer software copyrights, and new plant variety rights. These may occur in the process of technology exports, and foreign investors' acquisition of Chinese enterprises.

According to the guideline, Chinese units or individuals can transfer their IPR to international enterprises, individuals or groups. Such transfers will be reviewed if they appear to affect national security or China's core technology innovation in key fields, the guideline draft said.