Strengthening Innovation: China’s Evolving IP Legal System

China’s IP System: A Comprehensive Overview of Legal Frameworks and Recent Developments

This is a summary of the Chinese IP System by China National Intellectual Property👉 Creations of the mind protected by legal rights. Administration , CNIPA from September 2024. The content is fully aligned with the joint CEIPI  European Patent👉 A legal right granting exclusive control over an invention for a limited time. Office Diplom Universitaire IP Business Administration and can be used to supplement the diploma content.

Key Components of China’s IP System

1. Patent Legal System:
   • Types of Patents: China offers three types of patents: invention👉 A novel method, process or product that is original and useful. patents, utility model patents, and design patents. Invention patents require novelty👉 Requirement that an invention must be new and not previously disclosed., inventiveness, and industrial applicability, while utility model patents focus on novelty and practical applicability. Design patents protect the appearance of products.
   • First-to-File System: The patent system operates on a first-to-file basis, where the first applicant to file for a patent has priority over others.
   • Amendments to the Patent Law: The Patent Law has undergone several amendments, with the most recent being the fourth amendment in 2021. This amendment introduced punitive damages, increased statutory compensation amounts, and enhanced administrative protection for patents.
2. Trademark👉 A distinctive sign identifying goods or services from a specific source. Legal System:
   • First-to-File System: Similar to patents, trademarks are also registered on a first-to-file basis.
   • Dual-Track Protection: Trademark protection combines administrative enforcement and judicial adjudication.
   • Amendments to the Trademark Law: The Trademark Law has been amended four times, with the latest amendment in 2019 focusing on combating bad-faith applications and enhancing punitive damages.
3. Geographical Indication Legal System:
   • Dual Protection System: Geographical indications (GIs) are protected through both trademark protection and sui generis protection.
   • Recent Developments: The CNIPA has refined the registration and administration of collective trademarks and certification trademarks, enhancing the protection of GIs.
4. Integrated Circuit Layout-Design Legal System:
   • Specialized Protection: The Regulations on Protection of Integrated Circuit Layout-Designs provide exclusive rights for integrated circuit layout-designs, including registration and legal liabilities for infringement.

Patent Legal System

Overview

China’s patent legal system was established with the Patent Law of the People’s Republic of China, which came into effect on April 1, 1985. The law has undergone three major amendments in 1992, 2000, and 2008, with a fourth amendment effective as of June 1, 2021. This system protects invention, utility model, and design patents, adopting a first-to-file principle and combining judicial and administrative enforcement mechanisms.

Recent Developments

• Fourth Amendment to the Patent Law: This amendment aimed to strengthen patent holder rights, promote patent implementation, and refine the examination system. Key changes include the introduction of punitive damages, increased statutory compensation, and improvements in administrative protection.
• Patent Term Compensation System: The amendment introduced a system to compensate for delays in granting invention patents and in the review process for new drugs.
• Open Licensing👉 Permission to use a right or asset granted by its owner. System: The amendment also introduced an open licensing system to enhance patent commercialization.

Trademark Legal System

Overview

The Trademark Law of the People’s Republic of China was implemented on March 1, 1983, and has undergone four amendments. The law emphasizes the protection of exclusive rights of registered trademarks and consumer interests, using a dual-track protection system combining administrative and judicial enforcement.

Recent Developments

• Fourth Amendment to the Trademark Law (2019): This amendment focused on rejecting bad-faith applications and increasing punitive damages for malicious infringement.
• Draft Amendment to the Trademark Law: The CNIPA is currently working on a new amendment aimed at adapting to technological advancements, maintaining social justice, and enhancing public services. This includes measures to combat malicious registrations and strengthen trademark use obligations.

Geographical Indication Legal System

Overview

China’s geographical indication (GI) protection system is dual, encompassing both trademark protection and sui generis protection. GIs can be registered as certification trademarks or collective trademarks, while sui generis protection focuses on product quality supervision and accurate labeling of product origins.

Recent Developments

• Measures for Protection of Geographical Indication Products: The CNIPA issued new measures in 2023 to enhance the examination and protection of GIs, clarifying departmental responsibilities and strengthening management.
• Unified GI System: The CNIPA is researching a unified system that coordinates sui generis and trademark protection, aiming to provide applicants with more options and promote international cooperation.

Integrated Circuit Layout-Design Legal System

Overview

The Regulations on Protection of Integrated Circuit Layout-Designs, promulgated in 2001, provide specialized protection for integrated circuit layout-designs. This includes exclusive rights, registration procedures, and legal liabilities for infringement.

Patent and Trademark Examination Policies

Overview

China’s patent and trademark examination policies are crucial for implementing IP laws effectively. The CNIPA continuously refines these policies to improve examination quality and efficiency.

Recent Developments

• Guidelines for Patent Examination: Revised in 2024, these guidelines clarify new systems introduced in the Patent Law, such as open licensing and patent term compensation.
• Guidelines for Trademark Examination and Adjudication: Issued in 2022, these guidelines unify examination standards and refine trademark business processes.

Recent Developments in Intellectual Property Examination Policies

The CNIPA has been actively improving examination policies to enhance quality and efficiency. Key actions include:

• Revised Guidelines for Patent Examination
  The revised Guidelines for Patent Examination in China emphasize the application of the principle of good faith, ensuring that patent applications are based on genuine inventive activities and do not involve falsehoods. These guidelines also improve examination standards for emerging fields such as artificial intelligence and big data, providing clearer criteria for assessing inventiveness in these areas. By refining examination procedures, the guidelines aim to enhance the protection of innovative technical achievements and standardize examination processes, aligning them with international standards.
• Quality Assurance and Efficiency Measures
  The China National Intellectual Property Administration (CNIPA) has implemented robust quality assurance mechanisms to enhance the reliability and consistency of patent examinations, which has contributed to a significant reduction in the average examination time for invention patents. By the end of 2023, the average pendency for invention patents was reduced to 16 months, positioning China among the leaders in international patent examination efficiency. The CNIPA continues to focus on improving examination efficiency and quality, aiming to further reduce examination times and enhance user satisfaction with patent examination services.

Conclusion

China’s intellectual property system has undergone profound evolution, marked by a strong commitment to innovation👉 Practical application of new ideas to create value. and international cooperation. The China National Intellectual Property Administration (CNIPA) has played a pivotal role in refining patent, trademark, and geographical indication laws, alongside significant improvements in examination policies. These efforts are designed to establish a robust and efficient IP framework that supports both domestic economic development and global integration. By continuously adapting its IP system to technological advancements and international standards, China is positioning itself as a leader in intellectual property protection and innovation. This strategic alignment is crucial for fostering a favourable business environment that encourages creativity, entrepreneurship, and technological progress.

The future of China’s IP system looks promising, with ongoing initiatives aimed at enhancing enforcement, improving legal frameworks, and expanding international cooperation. Recent developments, such as the accession to international treaties like the Hague Agreement and the implementation of punitive damages for IP infringement👉 Unauthorized use or exploitation of IP rights., demonstrate China’s resolve to align with global IP norms. Furthermore, the country’s focus on emerging technologies, such as AI and biotechnology, underscores its ambition to drive innovation and economic growth through robust IP protection. As China continues to refine its IP system, it is likely to attract more foreign investment and strengthen its position in the global innovation landscape, ultimately contributing to its goal of becoming an IP powerhouse by 2035.