Xi鈥檃nIntellectualPropertyTribunalisestablishedinnorthwestChina鈥檚ShaanxiProvinceonFebruary24,thefirstinnorthwestChinaTheU.S.TrumpadministrationdidnotwaitlongbeforehardeningitstonetowardChina.Barelyayearinoffice,accusationsofChinaviolatingAmericanintellectualpropertyrights(IPRs)havealreadybeenmade.TheWhiteHousethenlaunchedaninvestigationunderSection301oftheU.S.TradeActof1974,arguingthatChinaforcesforeigncompaniestoturnovertechnologysecrets.Expertsbelievethattheissuehasbecomeoneofthemainreasonsbehindtheloomingtradewarbetweentheworld鈥檚twolargesteconomies.TheaccusationwasrefutedbyShenChangyu,CommissioneroftheStateIntellectualPropertyOffice(SIPO)ofChina.Accordingtohim,theaccusationisbaseless,andtheinvestigationreportofSection301didnottakeintoaccounttheChineseGovernment鈥檚effortstoprotectIPRs.Infact,10yearsaftertheimplementationofChina鈥檚nationalstrategyonintellectualproperty,thecountryismorethanevercommittedtobetterIPRprotection,hesaid.
Aleapforward
China鈥檚modernIPRprotectionregimecameintobeinginthelate1970s.ChinawasthusalatecomerintermsofIPRprotection,inadditiontohavingfragilefoundations,saidWangBinying,DeputyDirectorGeneraloftheWorldIntellectualPropertyOrganization(WIPO).鈥淏utinjustfourdecades,thecountryhasmanagedtoaccomplishwhatothercountrieshavetakenseveralcenturiestoachieve,鈥漵headded.If,forsome,Chinastillhastheunsavoryreputationofbeingacopycatuninterestedinrespectingintellectualproperty,recentdatapaintacompletelydifferentpicture.Lastyear,Chinapaid$28.6billioninIPRroyaltiestoforeignIPRholders,comparedto$1.9billionin2011.TheamountpaidtoU.S.IPRholdersalonein2017increasedby14percentyearonyear.Dataalsoshowsthatin2017,atotalof1.382millionpatentapplicationsforinventionwerefiledinChina,whichputsthecountryinthefirstplacegloballyfortheseventhconsecutiveyearinthisregard.Moreover,manyoftheapplicationsnowcomefromabroad.AccordingtostatisticspublishedbytheSIPO,in2017,theofficegrantedmorethan23,000patentstoU.S.applicants,placingtheUnitedStatessecondamongforeigncountries.
鈥淐hina鈥檚implementationofitsintellectualpropertystrategydemonstratestheChineseGovernment鈥檚determinationtoprotectIPRs,鈥漵aidMarkSnyder,VicePresidentofQualcomm,aU.S.leadingmanufacturerofelectronicchips.QualcommhasalsobecomeoneoftheleadingpatentapplicantsinChina,whichalsoexplainswhyitsinvestmentshaveincreasedsignificantlyinChinainrecentyears.
鈥淢eanwhile,Chineseinnovatorsareincreasinglyoutward-lookingandseekingtospreadtheiroriginalideastonewmarkets,鈥漞xplainedWIPODirectorGeneralFrancisGurry.ChinahasalsobecomethesecondlargestsourceofinternationalpatentapplicationsfiledthroughWIPOin2017,graduallyclosingthegapwiththeUnitedStates.HuaweiandZTE-twoChinesetechnologygiants-rankedatthetopofpatentapplicantsin2017.
Anotherrevealingfactisthatinrecentyears,particularlysince2014whenthreeintellectualpropertycourtsweresetupinBeijing,ShanghaiandGuangzhou,Chinahasseenariseinpatentdisputeresolutionsrelatedtoforeigncompanies,whoconsiderthemselvestreatedonanequalfootinginthecountry.Reportsindicatethatin2015,65foreignplaintiffswonagainstforeigndefendantsinBeijingIntellectualPropertyCourt;foreignplaintiffssuingChinesecompanieswonin81percentofcases,aboutthesamesuccessrateasChineseplaintiffs.
Furtherstrengtheningprotection
DespiteChina鈥檚undeniableprogressinthefield,itsIPRprotectionregimeisfarfromperfect.InhisspeechattheBoaoForumforAsiaAnnualConference2018heldinSouthChina鈥檚HainanProvinceinearlyApril,ChinesePresidentXiJinpingcalledforfurtherstrengtheningofIPRprotection.鈥淚PRprotectionisthecenterpieceofthesystemforimprovingpropertyrightsprotection,anditwouldprovidethebiggestboosttoenhancingthecompetitivenessoftheChineseeconomy,鈥漢epointedout,addingthatstrongerIPRprotectionistherequirementofforeignenterprises,andevenmoresoofChineseenterprises.
Specifically,Chinaaims,amongotherthings,tosignificantlyincreasethecostofviolatingIPRforoffenders.AccordingtothecurrentPatentLaw,incaseswherejudgesdonothavesufficientevidencetoestablishharmsufferedbythevictim,themaximumamountpayablefordamagesis1millionyuan($157,000).Togivefullplaytoitsdeterrenteffect,thefourthrevisionofthelawisexpectedtoincreasethisamount.鈥淚twasproposedtoincreasepunitivedamagesandlegalcompensationtoaddnewadministrativesanctionsandtoresolutelyfightviolations,鈥漵aidSIPOCommissionerShen.
Meanwhile,withtheimplementationofaninnovation-drivendevelopmentstrategyinChina,notonlybigcompanies,butalsosmallandmedium-sizedonesareseekingtoprotecttheirIPRs.Thus,tomeetthegrowingneedsofemergingindustries,theSIPOhassetup19centersdedicatedtoIPRprotectionthroughoutChina.鈥淭hesecenters,whichaimtocarryoutinvestigations,enforcethelawinafastandcoordinatedway,andofferone-stop,low-costandhigh-performanceservices,鈥漵aidShen.Theofficeexpectstofurtherextenditsnetworkandperfectitsstructurethisyear,headded.
AnotherimportantmeasureaimsatrestructuringtheSIPO,whichisnowresponsiblefortheadministrationoftrademarks,patentsandgeographicalindications-aresponsibilitythatwaspreviouslysharedamongseveraldepartments.AccordingtoShen,therestructuringwilladdressissuessuchasthelackofadministrativecohesionandredundancyofenforcementfunctions,thusstrengtheningandimprovingtheapplicationofrelevantlaws.鈥淭oday,Chinahasgonefromastudenttoastrongadvocate,amajorplayerandanactivebuilderofinternationalIPRrules,鈥漵aidWuHandong,ProfessoratZhongnanUniversityofEconomicsandLaw.
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