Progress in IP protection attracting more foreign innovators

More foreign innovators are willing to invest in China as the business environment for intellectual property and the protection of IP rights in the country continue to improve.

In the first half of the year, foreign entities submitted 94,000 trademark registration applications in China, marking a year-on-year increase of 7.4 percent, according to data released on Thursday by the China National Intellectual Property Administration.

Applications from Germany, Italy and the United States have recorded significant increase, with each witnessing a year-on-year growth of more than 20 percent, the data showed.

"The figures indicate that China has cultivated a favorable business environment for foreign companies to invest and increase their presence in the country, by extending equal protection of IP rights to market players from both home and abroad," said Shen Changyu, head of the administration.

Hu Wenhui, deputy head of the administration, emphasized the importance of IP protection in shaping a sound business environment, saying that more efforts are being directed toward improving the legal framework to create a predictable innovation environment for foreign businesses.

"We've joined nearly all major international IP treaties and promoted the improvement of domestic IP laws and regulations," he said.

The administration has helped amend the Patent Law, establishing the most stringent punitive compensation system in the world, and is participating in the revision of the Trademark Law as well as regulations on integrated circuit layout design protection, Hu said.

"Throughout these legislative processes, we've extensively solicited opinions and suggestions from foreign-funded enterprises and foreign chambers of commerce," he added.

Last year, the Ministry of Public Security released details of an incident in Tongling, Anhui province, where public security authorities resolved a case related to the production and sale of counterfeit foreign-branded hair dryers in March 2023.

Sixteen suspects were arrested, 10 counterfeit production and sales sites were dismantled, and more than 1,100 sets of counterfeit foreign-branded hair dryers along with over 30,000 components and packaging materials were seized. The total worth of these seized items exceeded 40 million yuan ($5.6 million).

The case demonstrated strong and dedicated law enforcement to safeguard IP rights of foreign enterprises. Following the successful resolution of the case, foreign entities in China sent a letter of gratitude to the public security authorities in Tongling, highly praising their efforts in protecting IP rights, according to the ministry.

Hu, the deputy head, said the IP administration has set up 128 national-level IP service centers, prompting over 8,000 foreign-funded and joint venture companies to register, ensuring that they can enjoy professional and preferential policies equal to those provided for domestic enterprises.

"In addition, we've conducted seminars, visits and research to increase exchanges with foreign innovators, in order to help them resolve IP-related difficulties in business operation," he said.

While protecting legitimate rights of foreign entities, Chinese IP departments have also strengthened the monitoring of IP risks for domestic companies going global, offering them guidance in handling IP affairs overseas, Hu said.

Citing the data, he said that by the end of last year, these departments had helped domestic innovators recover economic losses amounting to 38.04 billion yuan.

Greater efforts will be made to build a fair, just and nondiscriminatory business environment, Hu said, pledging to attract more foreign investment through stronger IP protection. He added that lawyers will be provided more training to improve their ability to tackle foreign-related IP disputes.

caoyin@chinadaily.com.cn