During the 10th Five-Year Plan (2001-2005), China made some
remarkable achievements in IP, laying a solid foundation for the
further development in the 11th Five-Year Plan period
(2006-2010).
The first 20 years of this century are strategically crucial for
China, with the 11th Five-Year Plan period the most important,
during which we must grasp opportunities, work hard, and keep a
clear head for the challenges we face. We must study and follow
carefully the development trend of international IP in full
consideration of China's reform, the development strategy to build
an innovation-oriented country, reviewing our work from higher
standards and dedicate to our work for even greater progress than
before.
In the contemporary world, economic globalization is a
dominating factor and science and technology are progressing day by
day. The importance of IPR protection becomes ever more important,
and the international system of IPR protection is undergoing a
series of reforms and changes to meet this new situation.
Information, biotechnology and new material technologies have made
outstanding breakthroughs and help to create new industries and
drastically transform traditional industries.
These, on the one hand, lead to the development of a
knowledge-based economy, adjustment of the economic structure,
modal change in economic growth and the redistribution of roles
within the world economy. The changes and adjustment of productive
power and productive relation, on the other hand, have helped
stimulate reform of the intellectual property system. The
establishment of the IPR protection system enables IPR to extend
into intangible assets, quite different from the traditional
concept of material assets such as machinery, land or factory
buildings. The connotation and extension of IPR are obviously being
expanded.
IPR protection has become a key aspect of civil legislation in
many countries, with expanded coverage, improved protection quality
and strengthened enforcement. WTO trade-related aspects of
intellectual property rights (TRIPS) promote IPR protection to an
unprecedented level, and the new Doha round of talks will have IPR
protection high on the agenda. It is obvious that IPR protection
has become an important part of the new world trade system, indeed
a precondition and basis for its development.
IP is now the core element of a country's competitive capacity,
an important means of upgrading productivity and increasing the
added value of products, the competence advantages of individual
enterprises and a route to widening market share. Mastering and
controlling the core IP of technology in key fields and in regard
to key equipments are already the focus of much international
competition. Developed countries, such as United States and Japan,
have created and implemented their own national IP strategy,
attempting to consolidate and enlarge their dominance, vitalize
their domestic economies and enhance their competence advantages.
The IPR protection system will promote the development of science
and technology, and transformation of productive elements, and
stimulate industrial upgrading and independent innovation. Domestic
and international resources and markets complement each other, and,
generally speaking, they will benefit the Chinese economy to bypass
several traditional development periods, and realize healthy and
sustainable development. Meanwhile, as differences in economic and
technical levels continue to exist, developed countries will enjoy
a long-term superiority in IP, and the imbalance in the
international IP structure and in market competition will remain
somewhat severe. Some countries will take IP as a new means of
trade protection, so that China will face new challenges in its
development of IP and its overall economy.
To enhance IPR protection is the great need of China's
social-economic development and socialist market economic system,
which are entering a new phase after many years of careful
progress, and is an absolute necessity for China's further opening
up and reform. The strategy to build China into an independently
innovative and innovation-oriented country was clearly stated in
both the 5th plenary session of the 16th Party Central Committee
and at the National Conference on Science and Technology held in
the January 2006. This strategy indicates that much higher demands
are being made on China's IP work. Thus, the nation will
continually enhance and enforce IPR protection, build a sound
environment for innovation, and seriously combat and punish any IPR
infringements. One of the principal targets in the 11th Five-Year
Plan of National Economy and Social Development is to see the
emergence of a group of enterprises with their own IP, brands and
international competence advantages. As Premier Wen Jiabao pointed
out at the National Conference on Science and Technology in January
of this year, "IPR protection is an important issue and we must
repeatedly stress its vital role. IPR protection is of great
significance in encouraging independent innovation and optimizing a
favorable environment for innovation and invention, and is also
beneficial to reducing international IP conflicts.
Hence, China must set up and complete its IPR protection system
and enhance enforcement. All important policies and arrangements
made by the Chinese government in the new period represent its
correct understanding and knowledge of the development trend and
the internal working rules of the world economy, science and
technology, and also meet the demands in IP work during this new
period for stimulating ability in independent innovation, speeding
up economic development, changing the economic growth mode and
increasing China's competence advantages".
In the past two decades, China's IP work has made remarkable
progress, but there is still much room for improvement in the
following aspects:
--- Although the IP legal system has been basically established,
there are many imperfections in practice because, due to the rapid
development of the socialist market economy, its operating
mechanism has not been completed, supporting measures have not
completely carried out as expected, law enforcement remains weak in
some aspects, infringements and piracy cases remain high in some
areas and industries.
--- IP applications, registration and approval have increased
very fast, but the technological means for handling this work needs
further upgrading. Let us take invention patents as an example. In
such key fields as life sciences and biotechnology, information
technology, new materials, developed countries still enjoy absolute
dominance; maintaining a ratio of effective patents and their
operating life far beyond anything China can achieve. By the end of
2005, the effectiveness maintenance ratio of China's invention
patents was 58.9 percent and the operating life was 6 years, while
the figures for foreign patents registered in China were 78.8
percent and 8.5 years respectively.
--- IP management in China is unfocused, the information flow is
still not smooth, and the coordination ability is weak. All these
factors are not in line with the overall development of the
economy, trade, science and technology.
--- Enterprises, forming the main body of market, have obtained
an increasing number of patents in recent years, but the quantity
is still insufficient and is especially rare in regard to core
technology, key equipment and well-known brands or trademarks.
Intangible asset accumulation still goes slowly, IP system
management levels in the process from research through production
to sales remain unsatisfactory, and the ability to settle IP
disputes is weak.
--- Although public awareness of IP has increased, and a sound
environment for independent innovation, conducting foreign trade,
introducing foreign capital and technology has been established,
China's exported commodities comprise few with IP rights, and even
fewer that have been registered in foreign countries. So, China's
IP exports are more backward than its products and its industry and
product added-value remains at a low level and under great pressure
from developed countries in IP field.
--- An IP personnel team has been formed in various departments,
but China still lacks specialists commanding good knowledge and
working experience; the existing team also needs more people,
especially those with wide knowledge.
--- The platforms for IP information exchange and distribution
and services are not yet complete although they do exist,
especially in IP information publicity facilities and public
information services, two basic requirements for establishment of
an IP system.
--- China needs to improve its ability to deal with
international IP affairs and enforce its influence as there
continues to be much pressure from abroad.
Thus, we must fully realize the importance of IP work, try our
best to deal with all challenges, seriously solve all
contradictions and problems so as efficiently serve China's
economic and social development, China's strategy of building
innovation-oriented country and harmonious society, and promoting
sustainable development.
(SIPO.gov.cn)