The Striking Development of Chinese Intellectual Property System

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The striking advancement of the Chinese intellectual property system

It is undeniable that Chinese economy has made long progress and even spectacular when it has become the world’s second largest economy after more than 40 years of its economic reform. As for the intellectual property industry, China has made great strides in the development of the intellectual property system, thereby significantly contributing to the development of its knowledge-based economy regardless of the tensions escalated around the risk of a trade war outbreak with the United States and allegations of stealing intellectual property rights from American companies.[1]

According to the Global Intellectual Property Indicators of 2019 report published by WIPO, since 2017 China has surpassed industrialized countries such as the United States and Japan to become the country with the world’s most developed intellectual property activities. In particular, the number of patent applications filed by China in 2018 was over 1,500,000, accounting for 46.4% of total of globally filed patent applications compared to about 600,000 US applications and over 300,000 Japanese applications. For other industrial property subjects, number of applications from China is always overwhelming, for example utility model application accounts for 96.6% worldwide with nearly 2,100,000 applications, design applications account for 54% with over 700,000 applications and trademark applications remained at number 1 in the world for 18 consecutive years as of 2018 with nearly 7,400,000 applications accounting for 51.4%, and plant variety applications accounting for 28.5 % with 5,760 applications.[2]

Table 1: Number of patent applications, ultility solutions, designs and trademarks filed in the US, Japan, China, Germany, EUIPO, etc.

Source: WIPO, World Intellectual Property Indicators 2019, Page 7

Why China has developed its intellectual property system so spectacular?

The Chinese National Strategy on Intellectual Property has only operated for the first time since 2008, only 11 years before the National Strategy on Intellectual Property of Vietnam[3], but all indicators of the Chinese intellectual property activities have been recorded at so-called spectacular levels, for example, according to Table 2 below, only 147 patent applications were filed in China per 1 million population in 2008 but after 10 years, the These five figures have accelerated a staggering nearly eight times with 1,001 patent applications filed in 2018

Chinese national intellectual property Strategy also operated the first time in 2008, only 11 years earlier than the National Intellectual Property Strategy of Viet Nam[4]; however, all development index of Chinese intellectual property system are regconized at spectacular level, such as according to Table 2 below, in every 1 million Chinese, only 147 patent application were submitted in 2008; but merely after 10 years, this number has been increased strikingly nearly eight-fold with 1,001 patent applications filed in 2018.

Table 2: Top 20 countries having the highest percentage of residents filing patent application per million population between 2008 and 2018.

In our opinion, thank to simultaneously doing well all of the three pillars as below, China has entered the top countries reaching a high level of intellectual property development.

Source: WIPO, World Intellectual Property Indicators 2019, page 46

First Pillar: Both substantive and procedure laws developed well with the active participation of the Chinese Supreme People's Court

China has made great efforts to improve the legal substantive system regarding intellectual property, for example in the field of trademarks, China has made three amendments to the Law on trademarks since the Law on trademarks enacted for the first time in 1982, ie. these amendments made in 1993, in 2001 and the latest amendments in 2013 as the Law on trademarks coming into force from May 1, 2014. The Supreme People's Court quickly issued a trial guide for the national court system to properly hear administrative and civil cases related to the grant of protection and decide on trademark rights, and exercising jurisdiction of judicial adjudication by law, clarifying and unifying judicial standards thereby helping to ensure the ability to solve the disputes as well as to balance the legitimate rights and interests of the parties. Similarly, in the patent field, China revised the Patent Law several times and the most recent was the Patent Law amended in 2008. It is worth noting that the Supreme Court is very active in parallel with the State management system with respect to patent registration (SIPO) by enacting Guidelines on the application of law in patent disputes at first instance.

Second Pillar: Specialized ntellectual property courts

In 2014, China began to establish and operate a specialized court system in charge of intellectual property right disputes or infringements (specialized intellectual property courts or IP courts) at three important centres in Beijing, Shanghai and Guangzhou. In early 2017, China continued to set up specialized trial councils (belonging to the current court system) which specializes in intellectual property called as the specialized intellectual property tribunals (specialized IP tribunals) in 4 cities including Nanjing, Suzhou, Chengdu and Wuhan.

Third Pillar: Qualified and experienced judges and intellectual property enforcement forces

The adjudication practice has shown that China has made great progress in hearing intellectual property cases in view of speed and quality thanks to its well-functioning court system, judges have understanding of intellectual property and a bit transparent legal system. According to data published at the 4th National Workshop on Intellectual Property Trials, the entire Chinese court system has handled 813,000 civil, administrative and criminal cases merely related to intellectual property within 4 years from 2013 to 2017 and actually the courts have completed 781,000 cases.

According to data published at the 4th National Conference on Intellectual Property Trial, the whole Chinese court system has already accepted 813,000 civil, administrative and criminal case related to intellectual property rights within 4 years from 2013 to 2017 and in fact the courts have settled 781.000 cases.

It is noticeable that another agency that is not a court but plays a huge role in resolving complaints or petitions against refusal of protection, opposition or cancellation actions of trademarks is the Trademark Review and Adjudication Department (“TRAD”) [5]. According to the information published by TRAD in 2017, the total number of trademark complaints settled by TRAD reached a record 168,900 cases, of which 9,310 TRAD cases were subpoenaed.[6]

Should have specific needs regarding intellectual property rights in China, please contact: vinh@bross.vn; phone 0903 287 057, 84-4-3555 3466; Wechat: wxid_56evtn82p2vf22; Skype: vinh.bross.

Bross & Partners, a renowned and qualified Patent, Design, Trademark and Copyright agent of Vietnam, constantly ranked and recommended by the Managing Intellectual Property (MIP), World Trademark Review (WTR), Legal 500 Asia Pacific, AsiaLaw Profiles, Asia IP and Asian Legal Business, is providing clients all over the world with the reliable, affordable contentious and non-contentious IP services including enforcement, anti-counterfeiting,  litigation regarding trademark, trade name, industrial design, patent, copyright and domain name.