Routine policy briefing by the State Council(file2)

Background Documents of Policy on Accelerating the Construction of Intellectual Property Power under the New Situation

（On December 11^th,2015）

State Intellectual Property Office

To accelerate the construction of a powerful intellectual property country through the methods of reform is the important support to the implementation of the strategy of pursuing innovation-driven development and the inspiration on mass entrepreneurship and innovation. China’s State Intellectual Property Office (SIPO), jointed with relevant departments, studied and drafted the files on reforming measures to improve the intellectual property system.

一、Background

    Since the implementation of the national intellectual property strategy in 2008, various local governments and departments have implemented the requirements, promoted intellectual property works, and have made considerable progress. China’s invention patent applications (about 928,000 in 2014) ranked first for four consecutive years of the in the world, and the amount of trademark registrations (totally 8.39 million in 2014) remains first in the world, thus, China has become the a large intellectual property country in the world, but still having a wide gap with the requirements of the strategy of pursuing innovation-driven development for its large amount but not excellent or strong intellectual property rights, less core patents, small value of the brands and low added value of creative cultural design services. The number of patents obtained abroad each year (more than 10,000 pieces) is less than 10 percent of that of the United States, and Japan. Intellectual property trade deficit increased year by year. Infringement of intellectual property rights remains relatively serious. Chinese enterprises are facing higher and higher intellectual property risk when “going out”, and China has been the country which involved into the most “Section 337 investigation” cases+  for 13 consecutive years. To accelerate to become a a powerful intellectual property country, China faces an urgent need to solve these problems and improve the innovation and development mechanisms and strengthen the protection and use of intellectual property. According to overall plan of China State Council, to implement the decision by the Fifth Plenary Session Conference of the 18th Session of the CCCPC on deepening the reform in the field of intellectual property rights and strengthening intellectual property protection, SIPO led and organized to draft the files of reform measures to improve the intellectual property system on the basis of systematical research on related policies, learning form international experience and in-depth investigation and research, and then organized the discussion and demonstration by economic, technological, legal experts. On December 9, the executive meeting of State Council discussed the drafts.

二、Main Content

    The overall consideration is to deepen the reform of intellectual property system, further improve the systems and mechanisms of intellectual property, release innovation and creativity is  through decentralization, stimulate the vigour of innovation and creation through streamlining administration and delegating power to lower levels, better play the role of the intellectual property system to inspire the innovation, to provide favorable conditions for cultivating new growth drivers and new advantages in international competition, to accelerate the construction of a powerful intellectual property country.

The file is divided into seven parts.

 (I)Main requirements

According to the principle of “the strategic guidance, reform and innovation, market-oriented, overall planning", China will in-depth implement the national intellectual property strategy, deepen the reform of key areas of intellectual property, to encourage and stimulate public entrepreneurship and innovation, to provide strong support for the implementation of innovation-driven development strategy. By 2020, the reform important areas and key links of intellectual property will achieve a decisive outcome; the authorization and enforcement and protection system of intellectual property rights will further improve; the intellectual property system and mechanism of the clear boundary of IPR, rational division of labor, rights consistent with the responsibility, efficient operation, and safeguard of law will basically form; intellectual property creation, utilization, protection, management and service capacity will significantly increase, the environment for innovation and entrepreneurship will further optimize, and new advantages of intellectual property in international competition will gradually form, the modernization of intellectual property management and governance capacity will realize, a number of IP strong provinces will be built, and all above will lay a solid foundation to build China a world-class powerful intellectual property country with Chinese characteristics.

 (II)To promote the reform of intellectual property rights management systems and mechanisms.

Firstly, to research the improvement of intellectual property management system, improve the inter-ministerial conference system for implementation of National Intellectual Property Strategy; actively explore the reform of systems and mechanisms for intellectual property management. Secondly, the local government will be authorized to carry out reform and experiments in intellectual property issues. Thirdly, improve the management of intellectual property services and social organizations. Fourthly, establish evaluation system on major economic activities of intellectual property, study and make intellectual property rights evaluation policies, improve intellectual property rights evaluation work guidelines. Fifthly, establish innovation-driven development evaluation system taking intellectual property as an essential component.

 (III)Carry out the strict intellectual property protection system

Firstly, increase the punishment on the intellectual property infringement of, the to promote the of rule of law for intellectual property protection, develop the leading role of judicial protection of intellectual property rights, improving intellectual property protection mode through law enforcement and judicial protection, increase the compensation of infringement, implement of punitive damages against serious cases of malicious violations. Secondly, crack down intellectual property crimes; especially focus on the chain type, the industrialization of intellectual property crime network. Thirdly, establish and improve the early-warning and preventive mechanism of intellectual property protection. Improve quick-law-aid mechanism of intellectual property protection. Put intentional infringement of intellectual property into business and personal credit records. Fourthly, strengthen the intellectual property protection on innovations in new industry and new field. Strengthen the intellectual property protection rules of Internet, e-commerce, big data; promote the improvement of relevant laws and regulations. Improve the intellectual property protection policies on public-financing and public entrepreneurship. Fifthly, restrict the behavior of abuse of intellectual property. Improve IPR antitrust regulatory mechanisms, investigate and punish the monopolistic behaviors that exclude and restrict competition, through the abuse of intellectual property rights.

 (IV) Promote the creation and use of intellectual property.

Firstly, improve the mechanisms of intellectual property review and registration, realize online registration, electronic filing and paperless approval, accelerate the construction of world-class patent examination institute. Secondly, improve the service invention systems; protect the rights and interests of service inventors. Thirdly, promote the reform of patent licensing system, strengthen patent trades through licensing. Fourthly, strengthen the construction of intellectual property rights trading platform, promote the “Internet + intellectual property” development. Fifthly, foster intellectual property-intensive industries, and accelerate the development of advanced manufacturing industries. Sixthly, enhance the added value of intellectual property and international influence. Implement patent quality improvement projects, to foster a number of core patents. Support enterprises to conduct overseas equity investments through intellectual property rights. Seventhly, strengthen opening access of intellectual property information, build public service platform of intellectual property information, promote patents and other information open to the public for free or at low-cost.

 (V)Strengthen the overseas layout and risk prevention of intellectual property rights in key industries.

Firstly, strengthen the intellectual property rights layout planning of key industry at overseas. Secondly, expand intellectual property rights layout channels at overseas. Thirdly, improve oversea risk warning system of intellectual property rights. Fourthly, enhance the oversea risk control ability of intellectual property. Fifthly, strengthen the intellectual property rights aid system at overseas.

 (VI) Enhance the level of intellectual property rights cooperation with foreign countries.

Firstly, promote to build a more equitable and reasonable international intellectual property rules. Secondly, strengthen the construction of external cooperation mechanism on intellectual property rights. Thirdly, increase the aid to the developing countries in intellectual property field. Fourthly, broaden the public diplomatic channels in intellectual property issues. Fifthly, promote the development of international intellectual property services.

 (VII) Organization, implementation and policy support.

Propose specific work requirements from four aspects including strengthening organizational leadership, increasing fiscal and financial support, strengthening the construction of intellectual property professionals, and strengthening the publicity and guidance.

三、Significance

    To release energy of creation and innovation through deepening reform, accelerate the construction of a powerful intellectual property country, being helpful to better play the role of the intellectual property system to inspire innovation, protect and the stimulate public entrepreneurship and innovation, boost enterprises to “go out” , provide favorable conditions  for fostering new economic growth momentum and new advantages in international competition, to maintain the middle-speed even high-speed growth of the economy towards the high-end level development.