Read in Chinese
Speakers:
Mr. Shen Changyu, commissioner of the China National Intellectual Property Administration (CNIPA)
Mr. Hu Wenhui, deputy commissioner of the CNIPA
Mr. Ge Shu, deputy commissioner of the Patent Office and director general of the Strategic Planning Department at the CNIPA
Mr. Wang Peizhang, director general of the IP Utilization Promotion Department at the CNIPA
Chairperson:
Ms. Xing Huina, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO
Date:
July 29, 2024
Xing Huina:
Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Shen Changyu, commissioner of the China National Intellectual Property Administration (CNIPA), to brief you on relevant developments and to take your questions. Also present today are Mr. Hu Wenhui, deputy commissioner of the CNIPA; Mr. Ge Shu, deputy commissioner of the Patent Office and director general of the Strategic Planning Department at the CNIPA; and Mr. Wang Peizhang, director general of the IP Utilization Promotion Department at the CNIPA.
Now, I'll give the floor to Mr. Shen for his introduction.
Shen Changyu:
Thank you. I would like to take this opportunity to express my gratitude to friends from the media for their ongoing concern, attention and support for our work on intellectual property (IP) over the years.
IP is a strategic resource for national development and a core element of a country's international competitiveness. Since the beginning of the new era, the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core has placed greater emphasis on IP work, strengthening the top-level design of IP policies and deepening reforms across the IP field. This approach has led to a series of breakthrough advancements and landmark achievements in IP work, charting a path for IP development with Chinese characteristics and providing strong support for high-quality development. I will now briefly introduce the overall progress in IP reforms and development.
First, in terms of creation, high-value IP has continued to emerge. As of this June, the number of valid domestic invention patents in China reached 4.425 million, with the share of invention patents held by enterprises rising to 72.8%, indicating a surge in corporate innovation. The number of high-value invention patents per 10,000 people reached 12.9, surpassing the national target set in the 14th Five-Year Plan ahead of schedule. The number of valid registered domestic trademarks reached a new record high of 45.909 million.
Second, in terms of application, IP has effectively empowered innovative economic development. The implementation of special actions to promote patent commercialization has been deepened. In the first half of this year, the number of patent transfers and licenses by universities and research institutions across the country increased by 22.2% compared to the previous year, and a batch of high-value patents has accelerated implementation in advanced, intelligent and green industrial scenarios. The added value of patent-intensive industries reached 15.3 trillion yuan, accounting for 12.7% of GDP. From January to May this year, the total import and export value of IP royalties reached 180 billion yuan, representing a year-on-year increase of 14.1%. Exports grew by 17.7%, which was 4.7 percentage points higher than the growth rate of imports.
Third, in terms of protection, IP protection has contributed to creating a top-notch business environment. The newly revised Patent Law and its implementing regulations have been fully implemented, and revision to the Trademark Law has been included in the legislative agenda of the Standing Committee of the National People's Congress. The Measures for the Protection of Geographical Indication Products and the Regulations for the Registration and Administration of Collective and Certification Marks were issued to strengthen legal safeguards for IP. Progress has been made in establishing rules for data IP protection, with pilot programs launched in 17 provinces and cities to facilitate the circulation and utilization of data elements. The IP protection system has been strengthened, with 25 national-level IP protection demonstration zones being developed to high standards, and approval being granted for the establishment of 115 national-level IP protection centers and rapid rights protection centers. Public satisfaction with IP protection has increased to 82.04 points, setting a new record high.
Fourth, in terms of services, measures have been taken to improve convenience for individuals and enterprises. The IP Public Service Inclusion Project has been implemented, and the Guidelines for Government Services on Intellectual Property Rights was issued to standardize 72 IP administrative services. A total of 60 types of basic IP data have been made available, ensuring maximum data openness. The quality and efficiency of IP examinations have been continuously improved, with the average examination period for invention patents reduced to 15.7 months, with an accuracy rate of 94.2%. The average examination period for trademark registrations has stabilized at four months, with an approval rate of 97.7%, both reaching internationally advanced levels under similar examination systems.
Fifth, in terms of international cooperation, IP protection has actively contributed to high-level opening up. China has engaged deeply in global IP governance under the framework of the World Intellectual Property Organization (WIPO), and successfully joined the Hague Agreement Concerning the International Registration of Industrial Designs and the Marrakesh Treaty on copyright-related rights. China also facilitated the conclusion of the WIPO Treaty on Intellectual Property, Genetic Resources and Associated Traditional Knowledge. Institutional exchanges have been further deepened among China, the United States, Europe, Japan and South Korea; BRICS countries; China, Japan and South Korea; China, Mongolia and Russia; China and Central Asia; China and ASEAN; China and EU. Chinese applicants have consistently ranked among the world's leaders in applications under the WIPO's three major systems: PCT international patents, Hague system designs, and Madrid international trademarks. As of this June, valid foreign invention patents and registered trademarks in China reached 919,000 and 2.135 million, respectively, reflecting steady growth. Additionally, mutual recognition and protection have been achieved for 244 Chinese and EU geographical indication (GI) products, with a second batch of 350 products announced, thereby strengthening China-EU economic and trade relations.
Currently, China is in a critical period of transition from major importer of IP to major creator of IP. The IP work is shifting from a focus on quantity to an emphasis on quality. The recently convened third plenary session of the 20th CPC Central Committee made significant arrangements to further deepen reforms across the board, clearly outlining the need to establish an efficient system for the comprehensive management of IP rights. We will earnestly implement these arrangements, continuously enhancing our IP governance capabilities and levels, and better leveraging IP to incentivize overall innovation, promote industrial transformation, optimize the business environment, and facilitate the smooth circulation of both domestic and international markets, making a greater contribution to accelerating the realization of Chinese modernization.
That concludes my introduction. My colleagues and I are now ready to take your questions. Thank you.
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Xing Huina:
We will now move on to the Q&A session. Please identify your news organization before posing your questions.
CCTV:
The third plenary session of the 20th CPC Central Committee explicitly called for building an efficient system for the comprehensive management of intellectual property rights (IPR). What plans does the CNIPA have to carry out the related work? Thank you.
Shen Changyu:
Thank you for your question. I'll answer this one. Adopted at the third plenary session of the 20th CPC Central Committee, the resolution on further deepening reform comprehensively to advance Chinese modernization lays out many reforms regarding IPR, emphasizing the need to improve the property rights system to ensure law-based, equitable protection of the property rights of economic entities under all forms of ownership on a long-term basis and to establish an efficient system for the comprehensive management of IPR. According to the resolution, all economic entities, regardless of their form of ownership, will be treated equally when their property rights and legal interests are infringed upon or they infringe upon the property rights and legal interests of others. Also, the punitive compensation system will be refined. All these fully demonstrate that the CPC Central Committee attaches high importance to work related to IPR and that IPR play an important role in overall modernization.
The CNIPA is thoroughly studying the spirit of the third plenary session of the 20th CPC Central Committee, while maintaining a problem- and objective-oriented approach. We have explored implementation measures and plan to carry out related work from three aspects, with the aim of deepening reforms regarding IPR and facilitating the establishment of an efficient system for comprehensive management of IPR.
First, we will deepen reform on comprehensive management of intellectual property rights by better encouraging innovation. We will uphold the idea that by protecting intellectual property rights, we are protecting innovation. We will further intensify intellectual property rights protection, enhance legal protection for intellectual property rights, improve the punitive compensation system, create a framework for comprehensive protection, foster an innovation-friendly environment, and boost new quality productive forces. We will remove barriers impeding the invention, use, protection, management, service and international cooperation of intellectual property rights, while boosting the comprehensive utilization of patents, trademarks, geographical indications, layout-design of integrated circuits and data intellectual property with the aim of multiplying benefits. We will focus on addressing critical technical challenges, enhance support regarding patent examination for key and core technologies, and facilitate the transformation and application of patents, with the aim of contributing to the development of a modern industrial system, creating a virtuous cycle of investment in and output of innovation, and achieving greater self-reliance and strength in science and technology.
Second, we will deepen reform on comprehensive management of intellectual property rights by more effectively boosting high-standard opening up. With the aim of better coordinating foreign-related intellectual property right issues, we will participate deeply in global governance with regards to intellectual property rights, help improve related international rules, and expand institutional opening up. We will ensure equal treatment and protection for domestic and foreign-invested enterprises and create a first-class business environment based on market rules, the rule of law and international norms to attract global resource factors and increase the use of foreign investment, so that the domestic economy and international engagement can reinforce each other. We will guide export-oriented enterprises to create plans regarding overseas intellectual property rights, enhance assistance for safeguarding enterprises' legitimate rights and interests overseas, and encourage businesses to tap the global market.
Third, we will deepen reform on comprehensive management of intellectual property rights by facilitating the development of a high-standard market system. We will lawfully and equally protect the intellectual property rights of business entities under all forms of ownership and crack down on all kinds of infringing and illegal activities, so as to create a business environment that upholds fair competition and facilitates the creation of a unified national market where state-owned, private and foreign-invested enterprises all confidently operate their businesses, expand market shares and make investments. We will promote the deep integration of intellectual property rights and other productive factors, invigorate all productive factors such as labor, knowledge, technology, management, capital and data, and utilize various types of advanced, high-quality productive factors to foster new quality productive forces. We will improve the systems and mechanisms for fully motivating central and local governments, continue to enhance interdepartmental and interregional collaboration, strengthen top-level design while fostering a spirit of exploration among primary-level personnel, and promote the deep coordination of intellectual property rights and national, regional and industry-specific strategies, so as to boost effective interaction and provide robust support. Thank you.
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Bjnews.com.cn:
An important task of the special action on patent transformation and application is to use patents to strengthen industrial chains and improve efficiency in key industries. What are your thoughts on this? Thank you.
Shen Changyu:
Thank you for your question. I would like to invite Mr. Wang to answer.
Wang Peizhang:
Thank you for your question. Key industries are an important part of the national economic system and face fierce competition. Focusing on using intellectual property rights to strengthen industrial chains and improve efficiency in key industries, the CNIPA thoroughly implemented the arrangements and requirements stated in the special action plan for patent transformation and application. It also recently worked with relevant departments to issue measures on promoting the use of intellectual property rights for strengthening industrial chains and improving efficiency in key industries. We will focus on four aspects to enhance the competitive advantages, scale benefits, development environment and safety level of key industries.
First, to enhance competitiveness of key industries, we will improve the quality of intellectual property rights and foster more original and basic patents and high-value patent portfolios. We will establish and refine a work mechanism for patent navigation, implement a number of patent navigation projects for boosting key industries, and publish the results of patent navigation. We will better coordinate the layout of patents and the development of standards, encouraging enterprises to take part in the formulation of international standards.
Second, to increase scale benefits for key industries, we will accelerate the industrialization of patents, adopt online and offline matchmaking to achieve precise matching of patent demand and supply, and accelerate the transformation of existing patents. We will fully utilize the resources of various platforms, implement patent industrialization projects in key areas, explore open innovation such as through open-source patents as well as new modes of intellectual property right utilization such as patent open licensing, and develop patent-intensive products and famous, technology-based trademarks and brands.
Third, to optimize the ecosystem for industrial innovation and development, we will establish mechanisms for coordinated industrial development, guide and encourage leading enterprises and key industrial parks to build operation centers for intellectual property rights for various industries, offer guidance on setting up intellectual property rights related innovation coalitions for various industries, and promote cooperation and coordination in the invention, use, protection and management of intellectual property rights. We will encourage the establishment of patent pools for key industries, draft and release instructions, enhance the overall layout of patent pools, and boost coordinated industrial development.
Fourth, in terms of ensuring industrial security, we will make coordinated efforts to promote international cooperation and competition in IP, encouraging industrial communities to participate more in global IP governance in emerging fields such as the digital economy and artificial intelligence (AI). We will improve the overseas IP information service platform, continue to release dynamic information related to overseas IP, guide enterprises to strengthen the development of IP systems and overseas layout, and continuously improve the level of IPR compliance management and risk response capacities.
Going forward, we will consolidate coordination and support, implement concrete measures, vigorously promote the efficient transformation, coordinated application, strategic layout and risk prevention and control of IPR in key sectors, and provide strong support for industrial innovation and development and the cultivation of new quality productive forces at a faster pace. Thank you.
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Shangyou News:
Last year, the State Council issued the Special Action Plan for Transformation and Utilization of Patents. What progress has been made so far? What are the work plans for the next stage? Thank you.
Shen Changyu:
Thank you for your questions. I will answer these. Since the implementation of the Special Action Plan for Transformation and Utilization of Patents, the CNIPA has worked closely with relevant government departments and localities to promote patent industrialization, with supporting policies formulated and measures taken to effectively address difficulties in patent transformation.
On the one hand, we have accelerated sorting out of patent stocks of universities and research institutes. We have built a national data platform for invention patents of universities and research institutes to help them be clear about the number of existing patents. We collaborated with the Ministry of Education and the Chinese Academy of Sciences to organize key universities and scientific research institutions to take the lead in pilot projects and to form a demonstration effect. In accordance with the idea of "promoting and transforming while sorting out patents," all localities have actively held exchange activities such as on-site promotions for more efficient use of patents, and patent transformation matchmaking events. As of this June, universities and research institutes across the country have made an inventory of 850,000 existing invention patents, and overall progress has now exceeded 95%. Driven by these efforts, the number of patent transfers and licenses in universities and scientific research institutions nationwide reached 23,000 in the first half of this year, up 22.2% year on year. The transformation and utilization of existing patents are relatively large, and overall are becoming more and more active.
On the other hand, we have effectively leveraged the leading role of enterprises in the industrialization of patents. We have joined hands with the Ministry of Industry and Information Technology, the People's Bank of China, the National Financial Regulatory Administration, the China Securities Regulatory Commission and other departments to implement the patent industrialization plan to facilitate the growth of small- and medium-sized enterprises (SMEs). At present, we have organized more than 17,000 technology-based SMEs to participate. Through inclusive services and exclusive support for IPR, we have channeled knowledge, technology, capital, talent and other factors toward SMEs, and accelerated the cultivation of a group of model enterprises with patent industrialization as the growth path. At the same time, we have also made full use of initiatives, such as the IP Services Tour, "1,000 Universities-10,000 Enterprises" collaborative innovation partnership action, "100 Events with 10,000 Enterprises" encompassing small, medium and large enterprises for collaboration, and the "One Key Industrial Chain Each Month" investment and financing matchmaking event, to promote collaboration in patent transformation and application services, help SMEs to connect with high-quality investment institutions and patent industrialization cooperation projects, and play a bigger role in patent transformation.
Next, we will shift our focus from sorting out existing patents to making better use of them, concentrating on patent transformation for tangible results. We will prioritize patent industrialization, mobilize all forces and social resources to promote patent transformation in an all-round, in-depth and multi-channel manner, release the market value of patents, enhance corporate competitiveness, and create new growth drivers and strengths for industrial development. Thank you.
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Xinhua News Agency:
Protecting the rights and interests of foreign investors and fostering a first-rate business environment that is market-oriented, law-based and internationalized are particularly important. What measures have been taken to strengthen the protection of IPR of foreign-funded enterprises? And what progress has been made in this regard?
Shen Changyu:
Thank you for your questions. I would like to invite Mr. Hu to answer your questions.
Hu Wenhui:
Thank you to Mr. Shen and the reporter for the questions. Strict protection of IPR is an issue of concern for foreign-funded enterprises. General Secretary Xi Jinping emphasized that the protection of property rights, especially IPR, is an important aspect in creating a favorable business environment and highlighted the importance of protecting the lawful IPR owned by foreign enterprises in China. The CNIPA has fully implemented the important instructions delivered by General Secretary Xi Jinping and the decisions and plans of the CPC Central Committee and the State Council, and strives to create a level playing field for enterprises and innovators from all countries.
First, in terms of top-level design, China has successively issued a series of important documents, including the Outline for Building an Intellectual Property Powerhouse (2021-2035), the 14th Five-Year National Plan for Intellectual Property Protection and Application, and the Guidelines on Strengthening the Protection of Intellectual Property Rights. These have made clear arrangements for the equal protection of IPR, emphasizing the need to build an IPR protection system that supports a world-class business environment. At the same time, we have also completed a new round of amendments to the Trademark Law and the Patent Law, and established a punitive compensation system for IPR infringements with the highest international standards.
Second, in terms of improving protection efficiency, we treat and protect the IPR of domestic and foreign-funded enterprises equally. For example, we have built 115 national level IP protection centers and rapid rights protection centers across the country, with more than 5,000 foreign-funded and joint venture enterprises registered, providing the same rapid and coordinated protection services as we do to domestic enterprises. We deal with foreign-related IP disputes prudently and stop infringements in a timely manner. Over the past year, we have properly handled a number of IP disputes involving enterprises from the United States, Germany, France, Italy, Thailand, Denmark and other countries. Our efforts have been highly commended by foreign-funded enterprises.
Third, in addressing the concerns of foreign-funded enterprises, we have established a regular communication mechanism with them. Through multiple IP forums, we actively listened to their concerns, and helped resolve their IP-related challenges, enabling them to operate and invest with confidence. This month, we hosted another IP forum for foreign-invested enterprises, inviting more than 10 major multinational companies, including AstraZeneca, Bayer and Tesla, for face-to-face discussions and to hear their opinions and suggestions. Mr. Shen, along with myself and other responsible colleagues, attended the forum, where we addressed their queries on-site, earning their appreciation. In 2023, the satisfaction score of foreign-funded enterprises regarding IP protection in China reached 80.55 points, an increase of 1.44 points from 2022. At the same time, the number of foreign IP applications, authorizations and valid registrations in China has also increased rapidly. As of June this year, the number of valid foreign invention patents and registered trademarks in China reached 919,000 and 2.135 million, respectively, showing year-on-year growth of 3.9% and 3.8%. This demonstrates that foreign enterprises place great importance on the Chinese market and have strong confidence in China's IP protection system.
Moving forward, we will continue to strengthen IP protection and deepen international IP cooperation. We will actively align with high-standard international economic and trade rules, further improve communication mechanisms with foreign-funded enterprises, and make our IP efforts more robust and effective. This will create a better business environment for foreign-funded enterprises, allowing them to benefit more from China's development and its vast market. Thank you.
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China Intellectual Property News:
With the digital economy expanding rapidly, can you introduce the innovation of China's digital economy from the perspective of IP rights? What specific measures are being considered to ensure IP rights support digital economic development? Thank you.
Shen Changyu:
Thank you for your questions. I will invite Mr. Ge Shu to answer them.
Ge Shu:
Thank you. The added value of the digital economy has become a key engine of China's growth, with core digital industries contributing 10% to GDP in 2023. Innovation in this sector has been particularly dynamic, as evidenced by our IP metrics. In 2023, core digital industries received 406,000 invention patent authorizations, representing 45% of the national total. This sector has maintained a robust average annual growth rate of 21% over the past five years. By the end of 2023, there were 155,000 domestic enterprises holding digital economy-related invention patents, an increase of 31,000 from the previous year. In particular, innovation in the field of artificial intelligence has been notably vigorous. By the end of 2023, the number of valid AI invention patents in China reached 378,000, with a year-on-year growth rate exceeding 40%, which is 1.4 times the global average growth rate.
While domestic innovation accelerates, foreign enterprises continue to strengthen their patent portfolios in China's digital economy core industries. By the end of 2023, companies from 93 countries and regions held valid invention patents in China's digital economy core industries, of which 61.8% belonged to the digital product manufacturing sector.
The third plenary session of the 20th CPC Central Committee emphasized the need to accelerate the establishment of systems and mechanisms to promote the development of the digital economy. The data IP system serves as the fundamental framework for digital economic development. In recent years, we have focused on IP functions and actively explored establishing data IP protection rules to enhance and strengthen the digital economy. We have achieved initial results. This includes proposing the "four full considerations" basic principles for building a data IP system and conducting in-depth research on key issues such as data IP protection targets, responsible entities, registration methods, rights content, protection methods and application models, laying a solid theoretical foundation for building a data IP system. At the same time, data IP pilot projects have been launched in 17 provinces and cities across the country, with over 8,700 data IP registration certificates issued, and data IP pledge financing exceeding 5.5 billion yuan. On this basis, we drafted policy documents on data IP, established registration management standards, and designed a national unified data IP registration certificate. We are accelerating the establishment of a national data IP registration platform and related information systems to support data IP registration at the national level.
Next, we will earnestly implement the important reform arrangements for digital economy development outlined at the third plenary session of the 20th CPC Central Committee. We will continue to strengthen coordination with relevant departments and better leverage IP as a fundamental safeguard for innovation. Additionally, we will actively promote the establishment of a national-level data IP system to better support the development of the digital economy. Thank you.
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Jiangsu Broadcasting Corporation:
We know that trademarks are essential for market entry. Given China's vast number and diverse scale of business entities, what new measures have been implemented to facilitate trademark applications? Thank you.
Shen Changyu:
Thank you for your question. I'd like to invite Mr. Hu, who oversees trademark-related matters, to answer your question.
Hu Wenhui:
Thank you, Mr. Shen, and thanks you to the reporter for your question. China's vast market offers broad opportunities for the development of trademark industry. Since the start of the 14th Five-Year Plan, annual trademark applications have exceeded 7 million. As of June this year, the number of valid registered trademarks in China reached 45.909 million, with an average of one valid trademark for every four business entities. To meet diverse trademark application needs and stimulate market vitality, CNIPA has implemented several business-friendly services throughout the trademark application and registration process.
First, in terms of application procedures, we have set up 353 trademark service centers across 31 provincial-level regions. These centers provide more than 20 types of trademark services, including application processing, modifications, renewals, and pledge registrations, along with in-person consultation services. At the same time, we have actively promoted fully digital trademark services, optimized the online application interface, and implemented fee discounts for digital submissions. As a result, the online trademark registration rate has reached 99.7%.
Second, in terms of data sharing, we have implemented electronic trademark certification to facilitate nationwide recognition of digital certificates. We've incorporated trademark information, decision documents, registration certificates, pledge registration notices, and related services into the national administrative service platform for easier business access. Additionally, we've enhanced the integration of business registration and trademark registration data, launching pilot programs in several locations that enable simultaneous processing of business modification registrations and trademark changes.
Third, in terms of examination policies, we've strengthened timeline management across all stages and optimized the distribution of examination resources to ensure prompt processing of various trademark services. The average trademark registration examination period now consistently stands at four months, which is at a leading level compared to other countries that also implement prior rights examinations.
Fourth, in terms of supporting business development, we have organized examiners to directly engage with people in sectors such as food, traditional Chinese medicine, cosmetics, agriculture, and agricultural product processing, introducing trademark application precautions, tips regarding the online application system, and other information to enhance the trademark awareness of business entities and promote better enterprise development.
Moving forward, we will continue to enhance trademark services and implement more efficient measures to meet business entities' needs for trademark registration and brand building, thereby contributing to high-quality economic and social development. Thank you.
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China Daily:
At the opening ceremony of the third Belt and Road Forum for International Cooperation, President Xi Jinping emphasized the need to deepen reform in areas including intellectual property to support high-quality Belt and Road cooperation. My question is, what progress has been made in intellectual property cooperation under the Belt and Road Initiative (BRI) in recent years, and what are the next steps? Thank you.
Shen Changyu:
Thank you for your question. I will answer this. Since President Xi Jinping proposed the BRI, the CNIPA has established and continuously improved the intellectual property cooperation mechanism under the initiative. We have held two Belt and Road high-level conferences on intellectual property and made solid progress in cooperation with participating countries.
First, our partnerships have expanded. We signed an intergovernmental agreement with the World Intellectual Property Organization (WIPO) to strengthen intellectual property cooperation under the BRI. We established Funds-In-Trust China to provide technical assistance to developing countries, including those participating in the BRI. We have actively advanced intellectual property cooperation within minilateral frameworks such as BRICS, China-ASEAN, China-Central Asia, China-Mongolia-Russia, and China-Africa. To date, we have signed agreements and established bilateral cooperation mechanisms with 57 BRI participating countries regarding intellectual property cooperation.
Second, cooperation projects have yielded fruitful results. We have actively promoted exchanges and cooperation with partner countries in the areas of intellectual property policy communication, personnel training, degree education, examination services, and protection and utilization. We have organized more than 50 training sessions for partner countries, training more than 1,200 intellectual property officials and practitioners. We have developed intellectual property degree education programs under the BRI, enrolling over 230 students. We have also dispatched 29 experts in total to support intellectual property capacity building in partner countries.
Thanks to Belt and Road intellectual property cooperation, Chinese enterprises have expanded their development opportunities. Chinese invention patents now receive direct registration and recognition in Cambodia, while Laos accepts China's patent examination results. We have also established Patent Prosecution Highway (PPH) agreements with 17 BRI partners, including Russia, Singapore, Poland, Egypt and Saudi Arabia. The China-Thailand geographical indication mutual recognition and protection project is progressing steadily. Between 2013 and 2023, the number of patents granted to Chinese entities in BRI participating countries increased by an average of 20% annually. This growth was particularly strong in core digital and green low-carbon technologies, strongly supporting digital transformation and green development across BRI participating countries.
Moving forward, the CNIPA will thoroughly implement the key principles from President Xi Jinping's important speech at the opening ceremony of the Third Belt and Road Forum for International Cooperation. In September of this year, we, along with the Publicity Department of the CPC Central Committee (National Copyright Administration), the Ministry of Commerce, the Beijing Municipal Government, and WIPO, will host the Third Belt and Road High-Level Conference on Intellectual Property. The conference will include representatives from over 60 Belt and Road partner countries, regions, and international organizations. It aims to achieve greater scale, higher quality, stronger results, and broader impact. We will advance a series of pragmatic cooperation projects across four areas: patents, trademarks, geographical indications, and copyright. This will elevate Belt and Road intellectual property cooperation to a new level, better support the high-quality development of the BRI, and contribute to the country's high-level openingup. Thank you.
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The Poster News APP:
This year is a key year for achieving the goals of the 14th Five-Year Plan. Could you outline the progress in intellectual property development during the first half of this year? Thank you.
Shen Changyu:
Thank you for your question. I will have Mr. Ge Shu, deputy director general of our Patent Bureau, who is responsible for planning, to answer this question.
Ge Shu:
Thank you for your question. This year, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, we have earnestly implemented the principles of the Central Economic Work Conference, the national "two sessions," and the third plenary session of the 20th CPC Central Committee. We have strengthened intellectual property protection, promoted industrial innovation through technological advances, and actively contributed to the development of new quality productive forces, supporting the continuous recovery and growth of the economy. In the first half of 2024, intellectual property development has shown steady progress with five key characteristics.
First, innovation output grew rapidly. In the first half of this year, China granted 554,000 invention patents and 2.46 million registered trademarks, up 28% and 22% year on year, respectively. Additionally, 111 geographical indication (GI) products and certification trademarks received recognition and approval, while 5,365 integrated circuit layout designs were registered.
Second, the conversion and application of innovations accelerated. In the first half of this year, nationwide patent transfers and licenses reached 252,000, a 35.2% year-on-year increase. The registered amount of patent and trademark pledge financing reached 419.9 billion yuan, increasing 57% year on year, benefiting more than 20,000 enterprises — a year-on-year increase of 37%. Universities and research institutions across the country completed an inventory of 850,000 existing invention patents, with overall progress exceeding 95%.
Third, our efforts to protect IPR continued to increase. In the first half of this year, China introduced an action plan on the construction of an IPR protection system and approved the establishment of two national protection centers and two rapid-response IPR service centers, expanding coverage to 28 provincial-level regions. We handled 21,000 administrative patent infringement cases and supported 2,045 mediation organizations in resolving 57,000 IPR disputes. Additionally, 4,144 businesses received approval to use GI special marks.
Fourth, overseas intellectual property applications by Chinese enterprises continued steady growth. In the first half of this year, Chinese applicants filed 30,000 international patent applications through the Patent Cooperation Treaty (PCT) and 3,637 trademark applications under the Madrid System. Madrid System applications showed particularly strong momentum, increasing 20.3% year on year. According to WIPO) data, Chinese applicants also filed 1,004 industrial design applications through the Hague System, rising 5% year on year.
Fifth, foreign enterprises became more proactive in applying for patent protection in China. In the first half of this year, foreign applicants submitted a total of 78,000 invention patent applications in China, up 13.1% year on year, with Japan (22,000), the United States (20,000), and South Korea (10,000) ranking as the top three in application volume, up 7.3%, 11.4% and 18.2% year on year, respectively.
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Zhinews of Shenzhen Satellite TV:
In recent years, China has actively explored the patent open-license system to help enterprises integrate advanced technologies and achieve innovation-driven development. This effort represents an important component in promoting new quality productive forces. What is the current progress of this work? What measures will be taken to further implement this system? Thank you.
Wang Peizhang:
Thank you for your questions. The patent open-license system is a special licensing mechanism established in the fourth revision of China's Patent Law. This system facilitates simple and quick "one-to-many" licensing, effectively reduces institutional transaction costs, and significantly improves patent commercialization efficiency. Since May 2022, the CNIPA has carried out a patent open-license pilot program. By the program's completion at the end of 2023, more than 3,200 patent holders had selected over 59,000 patents for open licensing, matching them with more than 110,000 small- and medium-sized enterprises (SMEs). The program resulted in over 17,000 licensed projects, effectively easing the difficulties universities and research institutions face in patent commercialization and SMEs' struggles to acquire technology. After 18 months of pilot implementation, the patent open-license system concept has been popularized, laying a solid foundation for its full implementation. It has also played a positive role in expanding new models and channels for patent commercialization.
On Jan. 20 this year, the newly revised implementing regulations of the Patent Law took effect, and the patent open-license system was required to be fully implemented. Recently, the CNIPA issued a notice on comprehensively promoting the implementation of the patent open-license system, which focuses on three aspects.
First, we'll enhance policy guidance. We'll guide universities and scientific research institutions to select patents that have strong practicability, wide application fields, and are suitable for implementation in multiple locations for open licensing while inventorying existing patents, thus enabling SMEs to obtain patented technologies at a relatively low cost. We'll communicate the trial guidelines for estimation of patent open license royalties to the public in a well-targeted way and guide patentees to estimate license fees based on in-depth analysis. We will give full play to the role of IPR public service institutions and market-based service institutions, encourage them to provide consulting, trading and other services related to open licensing, and promote supply-demand matching.
Second, we'll optimize the content of our services. We'll promptly answer common questions about open licensing and help patentees standardize their submission of patent open-license statements. We'll guide patent agencies to provide convenient services, such as pre-examination, and facilitate the conversion of preliminary pilot projects into formal open-license agreements. License announcement data will be freely available for public search and use.
Third, we'll improve the supporting mechanisms. A set of mediation measures for patent open-license disputes will be issued, clarifying procedures for case acceptance, mediation, and settlement and guiding concerned parties in properly resolving various disputes encountered during the patent open-license process. We'll also actively coordinate with relevant departments to implement Patent Law provisions, reduce annual patent fees by 15% during the open-license implementation period, and further encourage patentees to participate in patent open licensing.
In the next step, the CNIPA will guide all localities in carrying out the patent open-license policy, promote the efficient operation of the patent open-license system, and transform these systematic advantages into a new driving force for patent commercialization. Thank you.
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Xing Huina:
Please continue to raise your hands to ask questions.
Bauhinia Magazine:
With the advancement of rural vitalization, all local governments have attached greater importance to the cultivation of the geographical indication industry and have actively created local specialty products. What has the CNIPA done to strengthen the protection and use of geographical indications? What are your future considerations? Thank you.
Shen Changyu:
Thanks for your questions. We will have Mr. Hu Wenhui answer these questions.
Hu Wenhui:
Thanks to Mr. Shen. Thanks to Bauhinia Magazine for their questions. Geographical indications are an important type of intellectual property and a crucial support for the development of industries with distinctive local features. In recent years, the CNIPA has comprehensively advanced the protection and application of geographical indications, effectively helping all localities make good use of "local specialties," and promoting regional economic and ecological development. The latest data shows that in 2023, the direct output value of China's geographical indications reached 960 billion yuan, achieving four consecutive increases. Among them, the annual output value of 131 geographical indication products and 408 geographical indication trademarks from key counties receiving national assistance for rural vitalization reached 9.7 billion yuan. Focusing on using geographical indications to contribute to rural vitalization and economic development with distinctive regional features, we have mainly carried out work in the following four aspects.
First, we have consolidated institutional guarantees. We have formulated and implemented a set of measures for the protection of geographical indication products and regulations on the registration and administration of collective trademarks and certification marks. We have also issued a notice on using geographical indications to support rural vitalization and refined related policy system, providing institutional guarantees for the high-quality development of geographical indications.
Second, we have carried out strict protection and management. We have mobilized all localities to strengthen the regulation of geographical indications, launched special campaigns to severely crack down on infringement and counterfeiting, purifying the market environment. We have implemented geographical indication protection projects, supported all localities to strengthen quality control in production areas, ensured the quality and features of geographical indications and have effectively enhanced the market competitiveness of geographical indication products.
Third, we have strengthened the application guidance. We have implemented projects for promoting the use of geographical indications and have selected 220 geographical indications in two batches nationwide, including them in the key list of guidance for promoting the use of geographical indications and thus giving more support to the cause. We have selected typical cases of geographical indications supporting rural vitalization and have promoted relevant experience.
Fourth, we have deepened international cooperation. We have continued to promote the mutual recognition and protection of geographical indications between China and EU, China and France as well as China and Thailand, promoting more Chinese geographical indication products abroad to enhance international popularity. As an example, wines from the eastern foothills of Helan Mountain, which have been included in the list of geographical indication products for mutual recognition and protection between China and the EU, were exported to more than 40 countries and regions in 2023, being sold not only in the Southeast Asian market but also in traditional wine markets such as France and Switzerland, with sales steadily increasing.
In the next step, we will further strengthen work with geographical indications, continue to improve the geographical indication system, and build national demonstration zones for the protection of geographical indication products with high standards. We will also vigorously use geographical indications to contribute to rural vitalization and promote the integration of geographical indications with the development of industries with distinctive local features, ecological conservation, inheritance of history and culture, rural vitalization and opening up, so as to better achieve the goal of "making good use of geographical indications to drive the development of industries and increase incomes of local people." Thank you.
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Xing Huina:
Last question, please.
Jinan Times APP:
It is the strategic arrangement of the CPC Central Committee to move faster to boost greater sci-tech self-reliance and strength and become a leading country in science and technology. Intellectual property is essential for encouraging innovation. What CNIPA plans to do in order to build up our national strength in science and technology?
Shen Changyu:
Thank you for your question. I will answer it. Since the 18th CPC National Congress, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, China has seen historic achievements as well as historic changes with scientific and technological endeavors. According to the Global Innovation Index (GII) released by the WIPO, China has risen from 35th in 2013 to 12th in 2023, a full 23 places, ranking top among middle-income economies, which is a huge improvement. The number of global top 100 science and technology clusters owned by China has also reached 24, rising to first in the world.
The National Sci-Tech Conference held not long ago proposed to focus on the strategic goal of building a strong country in science and technology by 2035, strengthen top-level design and overall planning and to move faster with achieving greater self-reliance and strength in science and technology. We will implement General Secretary Xi Jinping's important instruction that protecting intellectual property rights is equal to protecting innovation, give full play to the role of intellectual property rights in institutional supply and technological supply as well as will take active steps to contribute to the building of a leading country in science and technology. We will give priority to carrying out work in the following aspects.
First, we will continue to develop the system of laws related to intellectual property rights. We will thoroughly implement the newly revised Patent Law and its implementation regulations, accelerate the revision and demonstration of the regulations on the protection of integrated circuit layout designs, further promote the development of rules for the protection of data intellectual property rights, and speed up efforts to establish basic systems for supporting comprehensive innovation.
Second, we will continue to enhance the credibility and efficiency of intellectual property examination, improve the examination standards for new fields and new forms of business, such as big data, artificial intelligence and genetic technologies, strengthen the allocation of examination resources targeting the global frontiers of science and technology, the development of the economy, major needs of the country as well as the health and safety of our people, so as to actively promote breakthroughs in core technologies in key fields and contribute to solving bottleneck technological problems.
Third, we will carry out a special action on patent commercialization. Just now, we answered a reporter's relevant questions on it. In the next step, we will fully implement the patent open-license system. Mr. Wang Peizhang just now also answered this question. We will build the patent pool for key industries, take solid steps to advance the in-depth integration of scientific and technological innovation and industrial advancement to contribute to the development of new quality productive forces. To deepen reforms granting researchers corresponding powers over scientific and technological advances, it is necessary to properly deal with the commonly discussed rights to use, transfer, and benefit from their scientific and technological fruits. In order to better implement reforms for the empowerment of scientific and technological achievements, we will deepen reforms to fully boost enthusiasm for all kinds of talents in scientific and technological innovation as well as the initiative of application with scientific and technological advances.
Fourth, we will continue to strengthen the whole chain of protection for intellectual property rights, build national demonstration zones for the protection of intellectual property rights with high standards, continue to improve the comprehensive protection, build a modernized protection system for intellectual property rights, and promote the construction of a fairer, more equitable, open and transparent environment for innovation.
Fifth, we will deeply engage in global governance with intellectual property rights, promote the improvement of international rules and standards with intellectual property rights, actively integrate into the global innovation network and make greater efforts to attract the concentration of global innovation factors, so as to contribute to the realization of self-reliance and strength in science and technology with opening up and cooperation.
In the next step, the CNIPA will further conscientiously study and put into practice General Secretary Xi Jinping's new thoughts and conclusions on promoting sci-tech innovation, continue to intensify our efforts to advance tasks with intellectual property rights, so as to contribute to achieving greater self-reliance and strength in science and technology and building a leading country in science and technology. Thank you.
Xing Huina:
That's all for today's briefing. Thanks to Mr. Shen and to all the other speakers. Thank you to all our friends from the media. Goodbye, everyone.
Translated and edited by Liu Caiyi, Yuan Fang, Liu Sitong, Wang Qian, Yan Bin, Zhang Junmian, Yan Xiaoqing, Li Huiru, Zhang Lulu, Zhang Tingting, Xu Kailin, Zhang Rui, Fan Junmei, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.
