The Intellectual Property System Like Rules of a Game with Three Necessary Parts

The China “Sci-tech” Enterprise Summit was held by Sina Finance at Grand Millennium Beijing. More than 400 guests from regulators, listed companies, sci-tech innovation enterprises and PE and VC industries gathered together to discuss such topics as "enterprise innovation and policy support in the era of technological innovation" and "science and technology + capital or capital + science and technology" and exchange ideas on drivers of China’s economy in the future.

Lei Xiaoyun, director of the Promotion of Intellectual Property Utilization of the National Intellectual Property Administration of China (CNIPA), said at the summit that the intellectual property system could be considered as rules of a game with three necessary parts:

First, rules of the intellectual property system have been improved. Since its entry into the WTO, China has worked to meet requirements of Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) administered by the WTO in terms of rules and top-level laws and regulations; however, this does not mean that sound operation and market systems have also been put in place. Just like in a game where rules are important, fields, supporting services and players are also indispensable. Therefore, if investors and innovators were not good at playing within the intellectual property system, even the best rules and fields would not benefit China, which is why we should explore a model suitable for China.

Second, the intellectual property protection system, including self-discipline, social credit, mutual supervision, law enforcement and jurisdiction, has witnessed fast development. The institutional reform carried out last year integrated trademark into the CNIPA, making it one of the world's top five organizations in this regard. Since 1985, the number of examiners has increased from dozens to more than 10,000 today, and the number of patents granted annually by the CNIPA has grown from 38 to 432,000 in 2018.

Third, the market system, within which enterprises, universities, research institutes and investors are important players, has gained momentum. 99.2% of enterprises believe that the introduction of the intellectual property system has effectively improved their innovation capability and market competitiveness. This can be evidenced by statistics— when the system was established in 1985, only 38 patents were granted, of which 11% were from enterprises, whereas in 2018, the numbers increased to 438,000 and 64.3% respectively.

In conclusion, the intellectual property system is an urgent requirement driven by innovation, an indispensable part in international trade and a cornerstone of the market economy. To establish a sophisticated chain, greater efforts should be made in the creation, protection and application of intellectual property. Besides, the CNIPA is also working hard to improve quality, especially in examination.

September 1, 2019

Source: Sina Finance

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