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IPR strategy to define government's role
By Cui Ning and Qin Jize (China Daily)
Updated: 2004-06-14 07:36
The State Intellectual Property Office is brewing a national intellectual
property rights (IPRs) strategy, aiming to further upgrade China's knowledge
creation and utilization.
A group of established IPR researchers and specialists, as well as industry
representatives, were invited to a brainstorming session in Beijing last week to
give their opinions and suggestions on how the strategy should take shape.
Less government meddling
Hu Angang, director of the Research Centre for National Situations,said the
national IPR strategy must be tailored in line with the national middle and
long-term economic growth targets.
Hu said over the past 20 years, capital had contributed 50 per cent to
China's rapid economic development, but knowledge resources had contributed less
than 20 per cent.
In the next five years or even longer, the country's economic growth cannot
rely on the injection of capital alone. It should also be based on knowledge and
technology, he said.
Hu attributed the relatively faster growth in better developed coastal
regions to the utilization of the rich knowledge resources there.
"The national IPR strategy should be focused on the principle of boosting the
economy through technology, creating wealth and increasing people's welfare such
as improving health and sanitation facilities," Hu said. "It should also reflect
the concept of building a knowledge-based nation."
Under the strategy, government departments should, instead of intervening too
much, encourage fair competition between domestic and foreign companies, and
private and government-funded firms, he added.
Yang Lincun, an official at the Ministry of Science and Technology's
Intellectual Property Affairs Centre, confirmed that domestic companies' IPR
awareness has increased in recent years - but there is still much room to
improve.
The centre's latest survey showed that nearly 70 per cent of the domestic
companies interviewed had participated in IPR training courses, 50 per cent had
set up their own IPR systems and 40 per cent had registered patents for new
technologies over the past two years.
"Companies, colleges and research institutes are the mainstays of technology
innovation. Therefore, the national IPR strategy should stipulate that
government departments are not allowed to meddle too much in technology
development and the IPR affairs of companies," Yang said.
Too much intervention may yield a relatively lower efficiency. The country's
Committee of Arbitration for Technological Contracts, for example, has too many
officials while it lacks enough specialists.
The IPR strategy should concentrate more on creating a favourable environment
for enterprises in view of different phases of social and economic development,
Yang said.
Future hopes
On the other hand, the State should encourage research institutes to design
their research plans in accordance with the needs of enterprises and communicate
with the enterprises at an early stage, according to Zheng Chengsi, director of
the Intellectual Property Centre of the Chinese Academy of Social Sciences.
Communication beforehand between the two sides is key to the successful
application of IPRs.
Zheng said some domestic companies have failed in cases involving patent
infringements, yet they hesitate to appeal to the courts.
Thus, the government should provide more legal access to help domestic
enterprises safeguard their legitimate rights.
Though IPR enforcement has been implemented in China, it is still very
urgent, said Zheng, "to popularize the basic knowledge of IPRs as well as the
international rules among the public so that they can recognize and identify
intellectual property assets."
Zheng also called for fair rewards for inventors, saying the country should
encourage innovation.
Xue Lan, vice-dean of the Public Administration School at Tsinghua
University, urged the government to take more active steps in negotiating with
other countries to draft international intellectual property treaties.
"Those international rules should be more beneficial for developing
countries," he said.
Since the protection of intellectual property requires an investment of time,
money and knowledge, Xue suggested that the State Intellectual Property Office
should offer favourable policies and legal assistance to small and medium-sized
companies.
For big enterprises, Xue said, the office should enhance the establishment of
its patent and information database to help them analyze their IPR strategies,
which would reduce intellectual property risks.
Urgent strategy
The sooner the IPR strategy is worked out, the better it will be for domestic
companies, said Jiang Zhipei, chief justice of the China Supreme People's
Court's Intellectual Property Rights Tribunal.
"The national IPR strategy must be substantial so as to help nurture a group
of famous trademarks and companies with self-developed IPR technologies," said
Jiang.
The strategy should also guarantee an effective combination of
administrative, civil and criminal enforcement, he said.
Niu Wenyuan, a researcher at the Chinese Academy of Sciences, said
intellectual property should be listed as the top strategy for China in the new
century.
He said IPRs are the engine that propels a knowledge-based society and they
reflect the most advanced productivity.
He suggested that the country encourage patented inventions and hold
nationwide intellectual property trade fairs regularly.
The national strategy should not overly emphasize independent development,
said Hu Angang.
It should effectively combine efficient technology imports, technology
popularization and technology innovation among enterprises.
Yang Ruilong, dean of the Renmin University of China's Economics School, says
the IPR strategy will benefit the country's long-term economic and social
development.
He said the national strategy could not rely on the innovation of domestic
enterprises alone. It will be necessary to import advanced technology as well.
"The optimal results are achieved by using a combination of these two means,"
he said.
Meanwhile, Yang said enterprises should be the main innovators. Now, as never
before, every company needs an intellectual property strategy for
self-innovation and to build its own intellectual property assets.
Voice from companies
North China Pharmaceutical Group Corp, with a history of 53 years, is in
urgent need of restructuring. But it lacks funds for research and development
(R&D), said Duan Baoling, deputy-director of the corporation's technology
centre.
In many foreign pharmaceutical companies, R&D funds can reach upward of
US$1 billion - but the largest amount spent on R&D domestically is only 100
million yuan (US$12 million).
The strategy should better serve local companies, help safeguard their
interests and mobilize industrial associations to speak on behalf of companies,
said Duan.
"How to direct companies to respond to actions, how to help companies search
for new and timely patent information... should all be considered when
stipulating the IPR strategy," said Duan.
Ma Yan, a representative from China Petroleum and Chemistry Co Ltd, said
government departments should undertake a survey among enterprises before the
strategy is fully worked out.
The strategy must clearly define the ownership of property rights to
stimulate staff innovation enthusiasm through rewards.
Other opinions
Fang Xin, a researcher with the Education, Science, Culture and Health
Committee of the National People's Congress, said the strategy has to define
what should be done by government departments and enterprises, so as to clarify
the administrative responsibility and property rights of companies.
The strategy should sort out significant regions and industries instead of
giving equal status to all regions or industries, said Fang.
Moreover, it should also teach domestic companies how to bring themselves
closer to international IPR standards, because the local companies will push
into the outside world sooner or later, she said.
Lu Wei, an official with the Development Research Centre of the State
Council's technical economics department, said the drafting of the strategy
should be in accordance with the country's current development situation.
It should not aim too high, but set the standards required by the World Trade
Organization, and enhance anti-monopoly legislation.
In addition, the protection of business secrets is very weak in China and the
strategy should help guide domestic companies to improve the situation, Lu said.
Although it is always a good idea to seek legal or professional help on IPR
issues, some enterprises cannot afford the costs associated with legal
procedures.
Thus, the strategy should be flexible for those enterprises to enhance IPR
protection and make sure they themselves do not infringe upon the rights of
others.
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