IPR strategy needs further strengthening
(CRI)
Updated: 2005-12-31 13:53

China has recorded surging numbers of patent applications and trademark registrations in 2005. As all-around efforts being made to enforce the protection of Intellectual Property Rights in China, the IPR strategy, as it is called, is working towards the implementation of more innovation.

"By the end of 2005, the total number of registered trademarks has climbed to about 590,000. Patents for utilities and design have hit 110,000. These records rank at the top in the world," Wu Yixiu reports.

Zhong Qing, Deputy Director of WTO Affairs in Beijing, says China has made significant efforts to implement its commitment to IPR protection in accordance with the World Trade Organization agreement made four years ago.

"It's been widely recognized that China's taken some effective measures to fight against piracy over the past year. Law enforcement officials have cracked down on many manufacturing rings for pirated goods. There has also been a national campaign to deter people from the infringement of trademarks and patents. In some areas, a channel for immediate reportage of IPR infringement has been established."

Zhong Qing's analysis claims that apart from stronger enforcement, China has improved legislation and diversified law enforcement measures to protect IPR.

"Many amendments to existing laws and regulations are intended to reinforce IPR protection. For example, the period of validity of a patent has been extended from 15 years to 20 years following international practice. As promised when entering the WTO, China has also included trade related IPR disputes among judicial trial."

Although China has recorded surging numbers of patent applications, the quality of the patents remains a problem, as the country still lacks core patents in some high technology areas.

In 2004, half of the patent applications in China were from foreign companies, most of them in high-tech sectors and industries closely related to Chinese markets.
By contrast, only less than one per cent of all Chinese companies have applied for a patent, and those that do apply mostly for utilities or design patents; only a few are for invention.

Zhong Qing says that in the midst of facing more intense competition from companies outside of the country, those who use the IPR weapon better will gain a better advantage, while those who ignore IPR will fail in the market.

"Some foreign companies use progressive IPR strategy after entering Chinese market. They may register a couple of patents covering key links in the production process at the beginning of their entry into the Chinese market. This causes loss for the domestic companies who then infringing upon IPR law."

Zhong Qing adds that Chinese companies should gain futher awareness about IPR protection and focus on improving their technology levels.

China has had to face checks on IPR protection by the World Trade Organization for eight years since its entry into the organization. But China's IPR strategy is not only due to pressure from the outside, it is a necessary part of China's larger goal of technology and innovation.