State Intellectual Property Office of P. R. China 

 

State Administration for Industry and Commerce of P. R. China 

 

National Copyright Administration of P. R. China 

 

In 2011, the Chinese government agencies at all levels and relevant departments, by focusing on the central task of economic construction and centering around the themes of scientific development and accelerating economic development mode, furthered the implementation of the national intellectual property (IP) strategy in an in-depth manner with remarkable achievements made in various fields of IP. The year 2011 indicated the increasingly important role of IP in promoting social and economic development. 

 

I. Steady Improvements in construction of IP legal system 

 

The Draft on Regulations on Patent Commissioning (Revised for Review) was submitted to the State Council. The Measures on Patent Administrative Enforcement was promulgated and has been implemented. The revision of the Measures on the Records of Patent Licenses Contracts was completed. The revisions of the Measures on Patent Compulsory Licenses and the Rules of Labeling Patent Mark were open for public comments. Various government agencies were devoted to improving IP legislation and policies. The Intangible Cultural Heritage Law was promulgated and has been implemented. The State Administration for Industry and Commerce (SAIC) took a proactive approach to the Legislative Affairs Office of the State Council in promoting the revision of the Trademark Law. The third revision of the Copyright Law was officially launched. The draft of the Administration Regulation on Access to and Benefit Sharing of Bio-Genetic Resources was completed. State Intellectual Property of China (SIPO) formulated the Decision on Enhancing Patent Administrative Enforcement. The National Copyright Administration of China (NCAC) drafted the Guiding Opinions on Copyright Administrative Enforcement.

 

Locally, the construction of IP legislation was promoted effectively. Hunan province issued the Regulations on Patent in Hunan. Tianjin issued the Regulations on Patent Promotion and Protection. Nanjing city issued the Regulations on IP Promotion and Protection. The revision of regulations on patent protection was also advanced steadily in Sichuan, Xinjiang, Gansu, Yunnan, Fujian, ect. So far, 27 provinces (autonomous regions, municipalities) and 14 large cities have formulated regulations on patent protection. 

 

II. Further Promotion in Implementation of the National IP Strategy

 

The system of IP planning has been fundamentally established in China. For the first time, the statistical patent indicator was adopted in the outline of national five-year plan for economic and social development, in which the volume of invention patents per 10,000 heads of 3.3 was put forward. SIPO, together with the other 9 government agencies formulated and promulgated the 12th Five-Year Plan of Intellectual Property. The Inter-Ministerial Joint Meeting for Implementation of the National IP Strategy with 28 members issued and implemented the Promotion Plan for the Implementation of the National IP Strategy in 2011, and conducted an overall evaluation and sum-up of the implementation scenario of the Outline of the National IP Strategy for the past three years. SIPO issued the 12th Five-Year Plan on Patent Work as well as a series of specialized plans for national IP administration, IP examination, talents, informatization, international cooperation, etc. SIPO also formulated the Promotion Plan for the Implementation of the National Patent Development Strategy in 2012 to ensure annual promotion of the National Patent Development Strategy (2011-2020). To date, 26 provinces (autonomous regions, municipalities) as well as Xinjiang Production and Construction Corps have issued and implemented the outlines of local IP strategy or implementation opinions. SAIC spared no effort to propel the implementation of the State Trademark Strategy. Up to now, 31 provinces (autonomous regions, municipalities) have promulgated and implemented their local trademark strategies or implementation opinions. SAIC successfully held the conference on model cities for implementing state trademark strategy, in which Suzhou Consensus was signed by 53 cities (regions) for implementing state trademark strategy. The Suzhou Consensus indicated an open commitment to the public to implement trademark strategy with great efforts and to respect and protect IPR. SAIC formulated and issued the Methods on Appraising Model Enterprises for Implementing State Trademark Strategy and the Methods on Appraising Model Cities (Regions) for Implementing State Trademark Strategy in promoting model cities/enterprises in a continuous and deep manner. SAIC also organized an outreach program on trademark strategy and conducted outreach program on trademark strategy in Xinjiang Autonomous Region. The outreach program obtained highly positive affirmation. Other outreach programs on trademark strategy were also carried out, such as "Provincial Governors Talk on Trademark Strategy Implementation", "Mayors Talk on Trademark Strategy Implementation" and "Model Cities (Regions) for Implementing State Trademark Strategy and Model Enterprises Tour".

 

III. Enhanced IP Administrative Enforcement and Protection and Judicial Protection

 

The State Council has the leadership over the Special Campaign against IPR Infringements and the Manufacturing and Selling of Counterfeited and Shoddy Goods. Under the State Council, the Opinions on Further Combating IPR Infringements and the Production and Sales of Counterfeited and Forged Commodities was issued and a leading group of the Special Campaign was established, thus setting up the permanent mechanism for IPR protection. The Special Campaign has 155,900 IPR infringement cases investigated at all levels across China, involving 3.43 billion Yuan. It transferred 1,702 cases to judicial system and closed 9,135 illegal business points. The Ministry of Public Security launched the Operation Strike of the Sword aiming at combating IPR infringements and the manufacturing and selling of counterfeited and shoddy goods with an innovative method as called "Collective battle on exclusive cases". The Operation Strike of Sword settled 43,550 cases, captured 54,658 suspects, closed 32,573 illegal business points for manufacturing and selling counterfeits, and wiped out 7,731 organized crimes involving wholesaling and retailing counterfeits and shoddy goods. The Operation of Strike of Sword involved 24.15 billion Yuan, a year-on-year increase of 900%. In 2011, all levels of procuratorate agencies nationwide approved the arrest of 5,952 suspects in 3,532 infringement or counterfeiting cases with 5,690 cases prosecuted. People's courts nationwide received 5,707 first-instance IPR criminal cases, and 59,882 first-instance IPR civil cases as well as 2,433 first-instance IPR administrative cases, with respectively 5,504, 58,201 and 2,470 cases settled, giving a powerful strike on IPR infringement crimes. Customs nationwide detained a total of 18,000 batches of cargoes suspicious of IPR infringement with 103 million pieces of goods involved. China Customs was the only one awarded the "Best Government Agency in Anti-Counterfeiting Award in 2011" by the Global Anti-Counterfeiting Organization. The work on software legalization in governmental agencies obtained phased achievements. There are 135 central governmental administrations have completed the tasks of inspection and software legalization before late May, 2011. By the end of 2011, 8 provinces (autonomous regions, municipalities) completed inspection and software legalization.

 

Much more endeavor has been dedicated to the Special Campaign. The administrations for industry and commerce at all levels across China investigated cases seriously by means of inspecting markets, receiving complaints, and so on. A total number of 3,978,429 person times of enforcement officials were dispatched and 9,225,576 business entities as well as 801,602 wholesale and retail markets and fairs were inspected. The Special Campaign closed 4,966 illegal business points for manufacturing and selling counterfeits (representing 54.36% of all administrative enforcement agencies) and revoked 1,745 business licenses. A total of 90,701 cases involving IPR infringement and counterfeits were investigated and punished (representing 58.16% of all administrative enforcement agencies), 13,831 of which violated exclusive rights of well-known trademarks, 13,179 involving exclusive rights of overseas trademarks and 648 involving exclusive rights of geographical indication trademarks. The amount of money equivalent fined and confiscated is 507,718,100 Yuan. 757 cases were transferred to judicial system (representing 44.48% among all administrative enforcement agencies). 561 cases involving sales of counterfeits and shoddy goods via Internet were investigated and 60 of them were transferred to judicial system. 102,532 pieces of complaints and reports from customers were received and 304,492,200 Yuan were reclaimed.

 

IV. Substantial Increase in IP Applications filed, examined and approved, and registered

 

In 2011, 1,633,000 patent applications were filed, among which 526,000 were invention patents. The volume of valid invention patents has been accumulated to 697,000 in total with 351,000 invention patents were domestic, exceeding the volume overseas for the first time. 17,500 international applications were filed under PCT, an annual growth of 35.3%. Over 6,900 national defense patent applications were submitted and 5,038 applications were examined and settled with an increase of 43% than last year. On trademark registration, 1,416,800 applications were filed, an increase of 32.14% on a year-on-year basis. By the end of 2011, the volume of trademark applications has accumulated to 9,711,500, among which 6,650,700 were registered and 5,510,100 were valid registered trademarks. The three numbers mentioned above all have No.1 place across the world. On copyright, volume on copyright registration of software reached 109,300 in 2011 with a 33.4% increase than last year. The year 2011 also witnessed the receiving of 1,392 new varieties of plants with 255 granted. The volume of registration and preliminary examination and determination of certification marks and collective marks of geographical indication accumulated to 1,381.

 

V. Deepened Development in International IP Exchange and Cooperation

 

On international exchanges and cooperation on IP, the Sino-US IP Cooperation Framework Agreement was signed between the two countries. NCAC, together with the State Administration of Radio, Film and Television and the Ministry of Foreign Affairs, successfully bid for hosting the diplomatic meeting of WIPO's Protection of Audiovisual Performances Treaty. SIPO promoted the internalization of China's patent documents by integrating China's patent documents into PCT minimum document volume, and steadily participated in IP5 (SIPO, USPTO, EPO, JPO and KIPO) project, increasing international clout of China's patent work. SAIC signed Cooperation Memorandums of Understanding with AIPO and ARIPO, and jointly organized the Award Ceremony of China Trademark Golden Medal with WIPO. Trademark Office of SAIC formally participated in trilateral trademark negotiation among US, Japan and EU.

 

I would like to share with you an important information. Today, the 2011 National IPR Protection Award, jointly organized by SIPO, SAIC, and NCAC will be announced in Beijing. The award has selected 10 significant events, 10 significant cases, and 10 most influential people nationwide of the year.