China's IP strategy adapts to AI era

China plans to refine intellectual property rules for emerging technologies such as artificial intelligence and quantum computing, shifting the IP system from one that reacts to inventions after the fact to one that locks in ownership rights while software is still being built.

The State Council's recently released five-year plan for IP development (2026-30) signals a fundamental shift in how the world's second-largest economy will approach global competition in the innovation space.

Under traditional legal frameworks, patent protection was something companies sought typically after a product was fully developed. This latest plan moves those legal safeguards to the very start of the research process, creating early ownership rules for invisible digital assets such as proprietary algorithms, raw data sets and computational power models.

Rui Wenbiao, deputy head and spokesperson of the China National Intellectual Property Administration, said the plan comes at a critical juncture as emerging industries undergo rapid iteration and growing cross-sector integration. These developments are creating new production factors, such as data, algorithms and computing power, while also posing unprecedented challenges in security and governance, he said.

Rui described AI as a key driver of the new wave of technological revolution and industrial transformation, emphasizing that closer synergies between AI and IP are essential to industrial development and innovation.

At a news conference in July, Rui said patents in technologies including AI, the internet, cloud computing and big data accounted for 16.5 percent of China's total valid invention patents.

"With AI as a core growth engine, the synergy between AI and IP is both a natural driver of industrial development and a vital part of innovation services," he added.

To support that goal, the administration said it is refining AI-related systems and patent examination standards for emerging and future-oriented industries, including embodied AI and brain-computer interfaces. It is also stepping up efforts to facilitate trademark registration for AI-related businesses and deepening participation in shaping international intellectual property rules, technical standards and governance frameworks for AI, Rui said.

Proactive protection

The policy shift addresses a growing reality that technology is moving too fast for traditional legal systems to keep up.

Kang Lixia, a partner at Beijing Standzer IP Firm, said the plan addresses this reality by having "responding to the demands of technological innovation" as one of its guiding principles.

"This reflects a fundamental change in China's IP protection approach — from passive rights confirmation to proactive, preemptive action," she said.

"In the past, IP protection was sought after a technological achievement had already been made. But in the next five years, such protection will begin at the very source of R&D, so that we can seize early-mover advantages," she said.

In her view, the change is closely tied to the evolution of technology itself.

"Previously, technological iteration was slower, and most innovations were human-generated. But today, technology — especially generative AI — is also producing content, which poses new challenges for IP protection," she said.

Ma Xiangxiang, a partner at law firm AnJie Broad, echoed this view, emphasizing that the plan reflects China's commitment to providing solid legal support for emerging industries through institutional safeguards.

She said that IP rights are fundamental to this framework and that innovation has become a national strategic priority, rather than merely a corporate or individual concern.

"When the underlying drivers of production and value creation shift rapidly, the legal and regulatory infrastructure must adapt just as swiftly — not only to mitigate risks, but also to provide clarity, predictability and incentives for investment and research and development," she said.

Both experts agreed on the need to formulate a specialized IP legal framework for AI-related fields.

"It is undeniable that the challenges posed by AI development — particularly in areas like algorithm governance and data utilization — call for specialized legal frameworks that go beyond mere adjustments to the current system," Ma said.

Global standards

The plan also emphasizes "deep participation in international rule and standard setting" for emerging technologies.

"For decades, China has been a rule-taker in global IP governance, following standards largely shaped by Western nations. But AI presents a different picture," Kang said.

"In the past, whether in patents or trademarks, China was a latecomer. But in AI, most nations are still finding their way in governance, which gives us an opportunity to help shape the rules rather than just follow them," she said.

Ma said that IP around the world has been heavily influenced by European and United States systems, pointing out that "against the backdrop of a new wave of industrial revolution driven by AI and data, these established frameworks may be facing fundamental restructuring".

The key question, she said, is whether China can assume a leadership role in shaping the new rules and secure broad international consensus.

"This remains a challenge requiring continuous refinement and strategic engagement," she said.

She added that as technology evolves and concerns are raised over national security, the IP framework must transcend its traditional role as a purely private-rights mechanism.

"It is increasingly intertwined with trade sanctions, supply chain resilience and broader geopolitical dynamics. A key challenge for China — and for the international community at large — is how to recalibrate the emerging IP architecture in a way that strikes an appropriate balance between security imperatives and developmental priorities," she said.

Bidirectional empowerment

Beyond protection and rule-making, the plan places strong emphasis on the application and commercialization of IP.

"Whether a technology can be effectively implemented is key to unlocking its value and driving economic growth," Kang said.

Ma said that a well-functioning IP system should provide robust institutional safeguards for rights holders, encouraging them to devote more time, effort and capital to research and development.

"In the age of AI, the incentive framework anchored in the IP system has taken on even greater practical significance," she said.

"Whether it is the computational resources required for large-scale model training or the hardware investments needed for embodied AI R&D and production, all rely heavily on substantial financial backing," she said.

Ma said that effective IP protection serves a dual purpose: encouraging original inventions and creative works while enhancing overall national innovative capacity, as well as ensuring the efficient confirmation of innovative outcomes and safeguarding rights holders' legitimate interests in cases of infringement.

Kang stressed the need to speed up the examination process for IP applicants engaged in emerging technologies. She called for a faster channel for IP applications in these fields and suggested that patent examiners actively embrace new technologies themselves.

"Examiners must have solid comparative skills and be able to leverage advanced technologies, such as AI and big data, to improve examination quality and efficiency," she said.

caoyin@chinadaily.com.cn