Patent law revolution: China's 40-year journey from adaptation to advancement

A Fuxing bullet train runs on the Nyingchi section of Lhasa-Nyingchi railway in southwest China's Xizang Autonomous Region, April 2, 2025. (Xinhua/Tenzin Nyida)

The patent system, emphasizing exclusive private ownership and gains, was once viewed by some Chinese people 40 years ago as not aligning with the socialist values of common innovation for public benefits.

However, at the ongoing annual National Intellectual Property (IP) Publicity Week, a nationwide campaign where street banners, media platforms, and public advertisements all highlight IP-related achievements, the 40th anniversary of China's Patent Law was commemorated as a milestone in the history.

Much like an individual reaching 40 years old, the law of patent, the most important IP type, is seen as entering maturity through revisions over the past four decades. It has evolved from passively adapting to international rules to actively addressing domestic needs, providing strong legal support for the country's independent innovation.

Observers believe that in the strategic transformation of China's economy from being large to strong, particularly in developing new quality productive forces, the law of patent will play a more crucial role in promoting and safeguarding the progress.

A humanoid robot performs at Zhongguancun International Innovation Center, venue for the 2025 Zhongguancun Forum Annual Conference, in Beijing, capital of China, March 27, 2025. (Xinhua/Ju Huanzong)

Adaptation to international rules

The origins of China's Patent Law can be traced back to July 1978, the dawn of the reform and opening up. The central authority decided to establish a patent system. However, the term "patent" was unfamiliar to most Chinese people at the time.

A drafting team of legal, trade and technical experts studied patent systems from over 30 countries. After years of research and 25 drafts, China's first Patent Law was enacted in 1984.

At that time, since the system of planned economy had not fundamentally transformed, and people's understanding of IP rights was still limited, the drafting process even caused controversy, as some argued that a patent system might not align with the principles of socialism.

However, the doubts were quieted down by the long queue of applicants at the entrance of a national office of patents on April 1, 1985, the very first day the law came into effect. More than 3,400 applications were submitted on that day, setting a daily record in patent history.

Hu Guohua (1st R) speaks to journalists after submitting his invention patent application outside a national office of patents in Beijing, capital of China, April 1, 1985. (Xinhua)

The first two revisions in 1992 and 2000, including extensions to the patent term and scope, were aimed at "serving the socialist market economy and meeting WTO requirements ahead of China's accession," said Wang Qi, an IP law scholar at Beijing Technology and Business University.

By then, IP negotiations between China and the United States had dominated headlines, and the country was under intense stress from combating infringements and counterfeits.

But it was also a time when Chinese people were gaining a preliminary awareness and understanding of IP concepts -- seminars, presentations and training programs on IP were organized across the country.

In 1994, China joined the Patent Cooperation Treaty under the World Intellectual Property Organization, engaging more deeply with the international system.

It seems like a period of adolescence, filled with both pain and growth. In 2000, the number of patent applications in China reached a milestone of one million.

"In the early years after the law was enacted, most clients were multinational corporations," recalled Long Chuanhong, head of the CCPIT Patent and Trademark Law Office, the oldest Chinese IP law firm.

After China acceded to the WTO in 2001, Chinese enterprises began prioritizing innovation, resulting in a surge in domestic patent applications and explosive growth of the patent agency industry, the IP attorney said in a report on China IP News.

People visit the exhibition area of Airbus at the 15th China International Aviation and Aerospace Exhibition in Zhuhai, south China's Guangdong Province, Nov. 12, 2024. (Xinhua)

A shift to innovative development

The third revision in 2008 represents a turning point, a shift from merely following international standards to independently improving our systems, said Ma Yide, a professor at the School of IP under the University of Chinese Academy of Sciences.

The scholar noted that the revision embedded "enhancing innovation capabilities" into the law's purpose and added provisions mainly targeted at low patent quality, low infringement costs and patent rights abuse.

"Instead of responding to external pressures, this revision focused more on China's own needs for innovative development," Ma told Xinhua.

The effectiveness of legal support is evident: domestic patent filings surged, and China has taken the global lead in patent applications since 2019.

In 2020, the law underwent a fourth amendment, demonstrating a clearer shift towards a legal framework that is better aligned with the country's specific realities and challenges.

The latest revisions introduced punitive damages of up to five times the amount of financial losses for the right holder in intentional infringement cases, and the statutory compensation caps were raised to 5 million yuan (around 694,000 U.S. dollars).

The first beneficiary of the punitive damages was a French stroller company in a cross-border patent infringement case in the same year. The plaintiff sued three Chinese stroller manufacturers for infringing its invention patent. A court in north China's Tianjin ruled that the defendants pay punitive damages amounting to three times the plaintiff's losses.

"More foreign enterprises are choosing Chinese courts to resolve patent disputes," said Zhu Li, deputy head of the IP Court of the Supreme People's Court of China. "Today, China handles the largest number of patent cases in the world."

A participant plays chess with a robot during the 2025 Zhongguancun Forum Annual Conference in Beijing, capital of China, March 27, 2025. (Xinhua/Zhang Chenlin)

Patent law will continue to be updated with the times.

As this year's IP Week highlights AI, debates arise over AI-generated inventions and IP governance. "The law must adapt to new tech revolutions," said Professor Feng Xiaoqing of China University of Political Science and Law.

At a Monday seminar about the patent law, Shen Changyu, head of the China National Intellectual Property Administration, called the 40th anniversary a milestone.

"Forty represents a prime age," Shen said. "The patent law will continue to improve to new heights."