China Intellectual Property Training Center The Importance of IP Strategy:Setting a vision, and Objectives in Addressing the IP Needs and Priorities at the National Level Wen Xikai China Intellectual Property Training Center Oct.2009, Manila Wenxikai@sipo.gov.cn

Outlines The importance of IP strategy Brief of China’s IP strategy formulation work Vision of China’s IP strategy Top IP needs and priorities in China’s IP strategy

Importance of IP IP is widely perceived as a key policy tool to promote public interest, innovation and technological progress IP is very important for all countries in creating a positive environment for social, economic and cultural development.

TRIPS:General Goals reduction of distortions and impediments to international trade; promotion of effective and adequate protection of IPR; ensuring that measures and procedures to enforce IPR do not themselves become barriers to legitimate trade. the Preamble

TRIPS: Objectives Protection and enforcement of intellectual property rights should contribute to the promotion of technological innovation and to the transfer and dissemination of technology, to the mutual advantage of producers and users of technological knowledge and in a manner conducive to social and economic welfare, and to a balance of rights and obligations. Article 7

TRIPS: Principles Members have right to adopt measures for public health and other public interest reasons and to prevent the abuse of intellectual property rights, provided that such measures are consistent with the provisions of the TRIPS Agreement. Article 8

Importance of IP Strategy “Strategy is the means by which objectives are pursued and obtained over time”. The goal of an IP strategy is the creation, ownership and management of IP assets to meet national needs and to increase economic growth. "The essence of strategy is what NOT to do.” Michael E. Porter Harvard Business School professor leading authority on competition. Patent or trademark rights are not worth much unless they are adequately exploited. an actionable intellectual property (IP) strategy that maximizes financial results

Importance of IP Strategy An IP Strategy is a set of measures formulated and implemented by a government to encourage and facilitate effective creation, development and management of intellectual property. It outlines how to develop infrastructures and capacities to support inventors of IP to protect, develop and exploit their inventions. An IP Strategy may also be defined as a comprehensive national document which outlines how all the policy developments and implementation take place in a coordinated manner within a national framework.

Importance of IP Strategy –China’s Experience With the rapid development of economy, the restriction of such factors as energy, water, minerals, land, transportation, environment protection and ecology on the development of economy and society has become more and more prominent. The economic development mode which relies only on cheap labor forces no longer adapts to the needs of long-term and sustainable development of P.R. China Actively respond to international challenges and adjust to demands of economic and social development

Trend of Development of International IPR Protection Use of intellectual property system increased in the international community East Asian Region becomes the most active area for patent application and approval Patent applications increase sharply in developing countries International intellectual property laws and systems are undergoing significant changes Formulation of national IPR strategy becomes common practice

Brief of China’s National IP Strategy Formulation Work Setting up of National IP Strategy Formulation Leading Group Launching of the strategy formulation work. organization steps taken to carry out the formulation work time table for working out the national IP strategy

Organization of the National IP Strategy Formulation Work the National Intellectual Property Strategy Formulation Leading Group was set in early 2005 by the State Council, the strategy formulation work began to win momentum the 33 central institutions engaged in the formulation work include the State Intellectual Property Office, the State Administration for Industry & Commerce, National Copyright Administration), the National Development and Reform Commission, the Ministry of Science & Technology, Ministry of Commerce …... frame work of National IP Strategy the Compendium twenty thematic studies.

Steps Taken in Working Out the Strategy preparation substantial research public opinion and comments-soliciting Evaluation and approval

Important Events of the Formulation Work On February 15, 2007, the third plenary meeting was held by the leading group to review and deliberate all the thematic studies. All these studies were approved. On April 9, 2009, the Compendium (draft submitted for approval) was reviewed and deliberated and basically approved at a State Council Standing Committee Conference presided over by Premier Wen Jiabao .

Main Contents of China’s National IP Strategy Vision Guiding Principles Strategic Goals Strategic Focuses Specific Tasks key Measures

Vision Improving China's capacity to create, utilize, protect and manage intellectual property, making China an innovative country and attaining the goal of building a moderately prosperous society in all respects.

Guiding principles Advocate innovation Utilize IP effectively Protect IP according to law Manage IP in a scientific way

Strategic Objectives Strategic objectives in the five years to come Strategic objectives by 2020

Objectives for the Next Five Years The level of the self-relied intellectual property will be higher by a large margin and the quantity of intellectual property will be greater,the qualities higher; The benefits of utilizing intellectual property rights (IPR) will be increased significantly and the proportion of products rich in IPR should grow significantly ; The protection of IPR will be significantly improved; The awareness of the IPR in society, especially among market entities, will be greatly enhanced and a favorable intellectual property culture should be basically formed.

Objectives by 2020   Become a country with a comparatively high level in terms of the creation, utilization, protection and administration of IPR. The legal environment for IPR is much better, market entities are much better at the creation, utilization, protection and administration of IPR, the public awareness of intellectual property is increased greatly, the quality and quantity of the self-relied intellectual property are able to effectively support the effort to make China an innovative country, the role of the intellectual property system in promoting economic development, the culture prosperity and social progress in China become very apparent.

Strategic Focuses Improving the Intellectual Property Regime Promoting the Creation and Utilization of Intellectual Property Strengthening the Protection of IP Preventing Abuses of IP Fostering a Culture of IP

Specific Tasks Patent Trademark Copyright Trade secret New Varieties of Plants Intellectual Property in Specific Areas IPR Related to National Defense

Key Measures Increasing the Capacity to Create Intellectual Property Encouraging the Commercialization and Utilization of IPR Expediting the Development of the Legal System for Intellectual Property Improving Intellectual Property Law Enforcement Strengthening the Administration of Intellectual Property Developing Intermediary Services for IPR Developing Intellectual Property Human Resources Promoting the Cultivation of an Intellectual Property Culture Expanding International Exchanges and Cooperation in Intellectual Property

Inter-Ministerial Joint Meeting System for Implementation of IP Strategy Establishment of Inter-Ministerial Joint Conference system to implement IP strategy main duties of IMJMS composition of IMJMS responsibility for members of IMJMS working office under IMJMS

State Council Work of Focus Attaches Importance to Enforcement of IP Strategy In the Division of focal point of work of State Council to implement "Government Work Report” , enforcement of IP Strategy was stressed -perfect IP laws and regulations -improve IP public service system, raise quality and efficiency of examination and review of IP -continue to carry out specific actions to protect IP - make greater effort to publicity and education of IP -promote foreign exchanges and cooperation in IP, stepping up forecast of IP related information on external trade and domestic markets and the maintenance of IP

2009 IPR Protection Action Plan in Play legislation, work on 23 legislation of trademark, copyright, patent and customs protection and 3 judicial interpretations; enforcement, 9 nationwide campaigns and 12 measures to intensify routine operation; court trial, 7 measures to solve the most frequent problems; coordination mechanisms, 23 measures to promote inter-agency and cross-region cooperation; publicity, 24 measures to create atmosphere favorable for IPR protection; training and education, 19 measures to train enforcement officers, in-house counsels, attorneys and school students; international cooperation, 18 measures to expand cooperation; promotion of corporate IPR protection, 7 measures including project nurturing elite IPR-strong companies; service for right holders, 25 measures to upgrade public service and encourage intermediary service.

CAIC Implementing IP Strategy A series of measures to speed up trademark registration , reduce its backlog and raise the efficiency of registration were taken. It is expected that the backlog will be diminished in three years time. After 2010, the examination cycle for patent for inventions trademark registration in China will take only one year. In 2008, the registered trademark increased 85.27% as compared to the previous years.

IP Strategy at Local Level So far, 15 provinces and cities in Mainland China have formulated and promulgated the Outline of Local Intellectual Property Strategy or the corresponding advice for its implementation. It is expected that more and most provinces, autonomous regions and municipalities will issue its local IP strategy in the next two years. SIPO has drafted the " Classified Guidance on Local IP Strategy Formulation and Enforcement", which will be further revised, improved and introduced.

Cultivating IP Culture A society that strives to realize people's dreams through the understanding and respect for IP Culture will naturally head in the direction of stability, and enables not only sustainable economic development to be realized but also invention and innovation to contribute to solving the problems which threaten the whole of society in current and future generations, resulting in the prosperity of humankind. It is therefore necessary that IP Culture be nurtured by society as a whole. Tokyo Declaration 2004

IP Culture Being proud of innovation and honesty and ashamed of plagiarism and counterfeiting or cheating, Respect for knowledge, enthusiasm for innovation and creation, being honest and obeying law.

Promote Public IP Awareness , Develop IP culture Working mechanism set up for publicizing information about IP that is led by the government and supported by the media, in which the public widely participates. IP courses offered in higher education institutions General education plan on IP formulated and implemented IP education listed into teaching plans in primary and high schools in whole China.

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