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SIPO stands strong on intellectual property

The Chinese government remains staunch in its commitment to protect intellectual property, said Tian Lipu, commissioner of the State Intellectual Property Office.

"Valuing and protecting intellectual property is our government's consistent policy," Tian said.[Hong Kong Company Formation, Incorporation, Business Registration]

Tian said intellectual property protection is essential as China modernizes and strives to become an innovation-driven nation that is integrated with the world.

"Without IP protection, technological innovation in the country would be slowed and so would economic growth," he noted.

China has seen a marked surge in patent filings over the past decade, especially after the State Council released a national intellectual property strategy in 2008.

The number of applications filed to SIPO for invention patents, a major index of innovation, totaled more than 423,000 in the first three quarters of this year, more than 79 percent of which were from domestic applicants.

The bulk of domestic patents were related to new materials, metallurgy, medicine, telecommunications and computer technologies, according to SIPO statistics.

China received more than 526,000 invention patent applications in 2011, surpassing the United States to rank first in the world.

Of them, filings from China exceeded 400,000, accounting for one-fifth of the world's total, while the number of Chinese patents awarded was some 40,000, less than one-twentieth of the world's total.

As a growing number of Chinese companies go global, they are also seeking overseas intellectual property protection.[Hong Kong Company Formation|Hong Kong Company Registration]

China ranked fourth globally in international filings through the Patent Cooperation Treaty, with about 16,000 applications in 2011. That year, ZTE Corp, a Shenzhen-based telecommunications equipment manufacturer, rose to top of the global enterprise PCT filing list.

Increasing numbers of Chinese companies are joining the ranks of the world's patent powerhouses, but overall domestic enterprises are still behind when it comes to intellectual property strategy.

Compared with competitors overseas that have studied the intellectual property system intensely, many Chinese companies are "still in the learning stage", Tian said.

Global challenge

While China is among the countries with largest expenditures on trademark licensing and copyrighted software, books and video products, its image is twisted by biased press reports, Tian said.

A common global challenge, the issue of IP protection requires increased cooperation worldwide rather than finger-pointing, Tian said.

"China is also a victim of IP infringement," he said.

"What we need is to join hands to fight infringement and further build up an effective system to address this global issue."

The Chinese government has long adopted an open, objective attitude about the "long-term, complicated task" and tried to build an environment that nurtures intellectual property, he said, adding that the authorities have enhanced legislation, jurisdiction, enforcement and public education to raise the price of counterfeiting and reduce the cost of maintaining rights.

A nationwide operation that began in October in 2010 to crack down on fakes is a demonstration of the government's determination.

China's customs and Ministry of Public Security have both won international awards for their continuing efforts to stamp out fake merchandise.

Awareness to nurture

After reading the biography of Steve Jobs, legendary founder of electronics giant Apple, Tian once remarked that he was impressed by "the intellectual property awareness that runs in the veins of the American people".

Because intellectual property rights have only been developing in China for 30 years, the concept is relatively new compared to its 200-year history in the United States, he said.[Hong Kong Company Registration Guide]

Now China has related systems and organizations, but awareness still needs to be increased, he said.

"We still need some time to turn it from a system into part of our cultural awareness," Tian said.

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