[Source: State Intellectual Property Office of the P.R.C website]

As China is pacing down in economic growth, what follows is the rise in the cost of manufacturing, and thus drove China to direct its economic focus to high technology industries. On January 4, 2015, the State Council of the PRC established the goal of “becoming IP Power,” followed by the proposal of a 15-year national IP strategy action plan. According to the 13th Five-Year Plan announced in 2015, China needs to expand IP by quantity, and wins by quality. In 2013, China had been granted with 629,612 patents, which were 200,000 patents more than that acquired by the US, but China still thinks it was not enough. China aims to achieve an overall IP expansion at the regional, industrial, and international levels.

Many aspects of IP management need to be refined. According to Commissioner Shen of SIPO, 2015 is the year for China to transform and upgrade traditional industries in order to keep up with competition and retain economic growth. IP protection also needs to be enhanced by strengthening IP enforcement and judicial measures along with the establishment of IP courts in order for China to develop a more open and fair trading environment. China also aims to increase efficiency of application process by working toward shortening the time required for patent examination from 22.3 months, as it was in 2013, to 20.2 months by year 2020. Furthermore, China will increase its involvement in international affairs, forming alliances and generate international cooperation opportunities as a way of support to its enterprises in “going out.”

The main objectives of the Action Plan for In-Depth Implementation of National Intellectual Property Rights Strategy (2014~2020) are addressed as follows:

  1. Increase capability in IP creation: Increase  IP quality by increasing essential patents, well-known brands, copyrighted goods, and newly developed plant species, which will give enterprises greater advantage in IP market.
  2. Enhance the transaction and monetization of IPR
  3. Elevate IP protection: Comprehensive judicial measures will be designed to better regulate the IP market.
  4. Strengthen IP management: The IP examination process and IPR management in China will align that of the international standard.
  5. Increase IP awareness and improve overall IP environment.

Click here to view table.

Under the Action Plan for National Intellectual Property Rights Strategy, a number of major actions will be implemented. First, China will promote IP creation and utilization that support industrial transformation. Innovation needs guidance and encouragement from the government. Industrial upgrade can be achieved by modernization of agriculture and service industries. Second, China needs to substantially improve the IPR protection in order to create a healthy and competitive market environment. Such improvement in IPR protection can be achieved through the enhancement of law enforcement and refinement of judicial measures, promoting the use of licensed software in state-owned enterprises, by setting up certification for standard IPR management in enterprises, and by incorporate IPR management into national defense for their technologies and procurement. Third, China will enhance IPR transfer between academic institutes and establish a mechanism for profit sharing. Lastly, China will expand international relations and increase cooperation opportunities, along with refinement of IP regulations in regards to international trade. Such measures will better ensure Chinese enterprises’ success in “going out.”

The three major groundworks promoted in the Action Plan are: 1) IP information service that provides all kinds of IP information for public to access for free or at low cost; 2) IPR surveys and statistics program for monitoring IP environment and make amendments accordingly; and lastly, 3) assemble IP professional personnel through well devised trainings and precise allocation of personnel to enhance overall IP manpower bank.

Moreover, the government will establish state IP network for the national IPR strategy department to provide guidance and aid to local offices, along with supervision measures that keep local IP Offices in tuned with the Action Plan, and amplify financial support to promote propertization of technological outcome. All the above are the security measures used to ensure success and realization of the Action Plan.