"We have reached a common understanding that the two sides should create a better environment for the creative industries," said Wang Mei-hwa, member of the Taiwan negotiation team.

Annually Taiwan people had submitted around 21,000 patent applications to the mainland authorities, she said.

The ECFA would be a landmark for cross-Strait relations, signaling a new stage in the ARATS-SEF talks, Zheng said.

The mainland had not pressed Taiwan to lift trade barriers against imports of farm produce nor required the island to open its labor market.

The mainland agreed to allow the import of more duty-free farm produce from Taiwan and include preferential treatment for Taiwan's small businesses to enter the mainland market, Zheng said.

Kao, heading the Taiwan delegation, said the ECFA and intellectual property protection agreement would be the most important pacts for cross-Strait economic cooperation in the future.

"The ECFA is a comprehensive and complicated pact. That's why it has taken such a long time to discuss. Now the two sides have made concrete progress," Kao said.

The ECFA was of great significance to Taiwan as it would help sharpen the competitive edge of Taiwan companies, boost exports, attract more investment and promote employment, he said.

It would also set up a systematic mechanism for cross-Strait economic cooperation, he said.

The ARATS and SEF have held three rounds of expert-level talks on the ECFA since January.