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BUSINESS BRIEFING: INTELLECTUAL PROPERTY A CBI Member briefing on China’s Intellectual Property 2019 was a big year for intellectual property in China, with the Chinese Government working hard to push new legislation to improve the country’s IP landscape through the National People’s Congress. Last November, the business community in China began to see the fruits of the government’s efforts, with amendments to China’s Trademark Law becoming effective. 2020 brought the challenge of Coronavirus to businesses in China. This CBI Member Update will inform members on how China’s IP regime fared, as businesses grappled with a tricky first two Quarters, and provide insights into how China’s IP landscape is likely to evolve over the rest of the year. Headlines: The UK was the third most active filer of foreign trademarks in China, following the United States and Japan. British companies filed for 24,000 trademarks over the course of 2019, while the USA and Japan filed for 54,000 and 31,000 respectively China experienced massive growth in the number of trademark applications from British companies. UK-based applications for trademarks in China grew by 42.4% year-on-year. By way of reference, applications from Japan grew by 20%, while applications from the USA grew by 5% The total number of foreign trademark applications in China in 2019 was 255,000, an increase of 5.3% compared with the previous year The total number of foreign invention patent applications in China reached 157,000, an increase of 6%. However, the UK was edged out by Germany for a spot in the top three filer locations Responding to COVID-19: China’s National Intellectual Property Administration (CNIPA) was the first to be impacted by the Coronavirus. How did CNIPA respond, and what were the lessons learnt? Following the outbreak and spread of COVID-19 in China, CNIPA moved trademark applications and 23 other proceedings (change recordal, renewal, and
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BUSINESS BRIEFING: INTELLECTUAL PROPERTYA CBI Member briefing on China’s Intellectual Property landscape
2019 was a big year for intellectual property in China, with the Chinese Government working hard to push new legislation to improve the country’s IP landscape through the National People’s Congress. Last November, the business community in China began to see the fruits of the government’s efforts, with amendments to China’s Trademark Law becoming effective.
2020 brought the challenge of Coronavirus to businesses in China. This CBI Member Update will inform members on how China’s IP regime fared, as businesses grappled with a tricky first two Quarters, and provide insights into how China’s IP landscape is likely to evolve over the rest of the year.
Headlines:
The UK was the third most active filer of foreign trademarks in China, following the United States and Japan. British companies filed for 24,000 trademarks over the course of 2019, while the USA and Japan filed for 54,000 and 31,000 respectively
China experienced massive growth in the number of trademark applications from British companies. UK-based applications for trademarks in China grew by 42.4% year-on-year. By way of reference, applications from Japan grew by 20%, while applications from the USA grew by 5%
The total number of foreign trademark applications in China in 2019 was 255,000, an increase of 5.3% compared with the previous year
The total number of foreign invention patent applications in China reached 157,000, an increase of 6%. However, the UK was edged out by Germany for a spot in the top three filer locations
Responding to COVID-19:
China’s National Intellectual Property Administration (CNIPA) was the first to be impacted by the Coronavirus. How did CNIPA respond, and what were the lessons learnt? Following the outbreak and spread of COVID-19 in China, CNIPA moved trademark applications and 23
other proceedings (change recordal, renewal, and assignment etc.) online. E-Payment methods were made available to ensure continued access
To cover companies impacted by the disruption to state legal work COVID-19 caused, CNIPA introduced Notice 350, which allowed applicants to claim for continued protection for trademarks and patents due to expire during the Chinese New Year holiday. Furthermore, companies contesting a bad-faith claim have had the claim against them suspended for 2 months, resulting in them not having to pay-out during times of economic uncertainty
While the COVID-19 crisis was at its peak, the CNIPA reportedly managed to continue publishing decisions online within 20 days of receiving an application. The International Trademark Association commented, that despite moving applications online, removing the possibility to press a case in person, the process remained transparent, with high-quality trademark examinations handed down
BUSINESS BRIEFING: INTELLECTUAL PROPERTYA CBI Member briefing on China’s Intellectual Property landscape
Looking to the Future: China’s Patent Examination Guidelines:
1st February 2020, new guidelines regarding the examination of patent applications came into effect. CNIPA officially announced the amendment of China’s Patent Examination Guidelines (hereafter ‘the Guidelines’) on 31st December 2019. The Guidelines are designed to provide businesses operating in China with more appropriability in key areas of emerging technologies, such as:
Artificial Intelligence Big Data Blockchain Certain biotechnology and software innovations Internet of Things technologies
This list is by no means exhaustive, and the additional areas which the Guidelines cover simply add to what is rapidly becoming one of the most comprehensive IP regimes in the world.
What difference do the Guidelines make?
The Guidelines help businesses seeking clarity when patenting inventions involving algorithms and business rules / methods that provide a technical solution to a technical problem. In short, the new Guidelines now require that the technical effect of an invention should be determined through a holistic examination of the claimed invention, rather than a narrower examination of aspects of the claim.
So, what IS patentable?
Patentability will be determined by examining how all the technical features of a businesses’ invention (its algorithmic features, business methods or rules) interact and support one another’s functionality. As long as these technical means offer a solution to a technical problem, thereby producing beneficial technical effects when compared with before, the invention IS patentable
Ok, so what is NOT patentable?
Simply put, any algorithm, business model or rule not meeting this standard. A purely mathematical model would not be patentable, for example, because its application could be too wide - failing to prove that it provided a technical solution to a technical problem. Devising a model that measures electricity consumption to provide economic forecasts is another example, given the lack of specificity in the problem which it solves.
CNIPA Examples:
An AI neural network Bicycle sharing method A method for communicating among blockchain nodes
Does this help my business?
The introduction of the Guidelines positions China as at least equal to the US with regard to the sophistication of its IP regime, especially in key areas of emerging technology.
Some biotechnology and software innovations are now patentable in China under the Guidelines, but not the within US
The Guidelines offers faster invention patent pendency in China than the US Patent & Trademark Office and European Patent Office can provide for technological innovations
How can my business get involved? What should we be monitoring?
31st March: European Chamber of Commerce Beijing / Shanghai: Legal, ICT, Cybersecurity Joint Working Groups Meeting: Technology Licensing and Data Protection – Working Group Meeting.
- Meeting for EUCCC Members only. CBI Members interested in having their views represented at the meeting should contact Joseph Cash in the first instance at [email protected]
March: National People’s Congress to review amendments to the Patent Law. Due to be discussed in February’s session, it was postponed as a result of COVID-19. Draft text in English available here and in Chinese here.
BUSINESS BRIEFING: INTELLECTUAL PROPERTYA CBI Member briefing on China’s Intellectual Property landscape
CBI Beijing
March 2020
For more information, please contact:
Guy Dru Drury – Chief Representative China, NE & SE Asia ([email protected])
Joe Cash – Policy Adviser ([email protected])
