China’s 13th 5-year plan signaling its government’s vision for the future

Following a Research Study on international and national systemic problems in Intellectual Property Rights’ [IPR] business by China’s State Intellectual Property Office [SIPO] State Council will soon approve Intellectual Property to become China’s top priority level strategy. And this is further substantiated by the 13th 5-Year Plan’s emphasis on China’s further Opening for International Collaboration decisiveness to prioritize Green Developments towards a Low Carbon Economy. China’s administration esteems depolluting and clean Technology or Society approaches it’s near term engine for Innovation fostering further poverty eradication. And in order to entice Inventions to come more and more out of society and not be limited to already existing companies only, China is poised to create an attractive open innovation climate able to boost collaborative innovation under fair reliable and Non-Disclosure terms. Therefore SIPO endeavors implementation of criminal enforcement and arbitration to form an overall IPR protection legislation preceding open access to IPR for the public. To overcome recent shortfalls in SIPO’s comprehensive capacity for patent examinations coordinated Patent Examinations with Japan-, Korean- and Singapore Patent Offices are planned for increased responsiveness going forward. Already now IPR trading platforms started to mushroom in China giving urgency to SIPO’s action plan towards the needs. SIPO wants Intellectual Property to become the common denomination currency between unequal economies and therefore wants to provide enforcement that can be granted, including seizure and prosecution of defaults and violations as a fair basis for licensing in and out. E-commerce comprising 10% of China’s retail sale is currently threatened by 45% fake and requires rigorous IP and brand protection. Payment fraud having already been undertaken block-chain securitization.

According to World Intellectual Property Organization [WIPO] Report 2015 global patent filings grew by 7.8%, and global trademark filings by 15.3%. As in previous years, China was the main driver of growth. From already high levels, patent applications in China increased by 18.7%, and trademark applications by 27.4%. At the European Patent Office patent applications increased by 4.8% almost 2.67 times the rate of the USA, while Japan even saw a decline (-2.2%) in patent filings, quite contrary to its Trademark filing activity that increased markedly in Japan at a 43.0% growth rate. India with 21.9% ranked third after China, while the USA and Europe just achieved one third the rate of China. From 13.7mln IPR registrations 61.6% referred to Trademarks and 21.1% to Patents, 8.8% to Utility Models and 8.3% to Industrial Designs. China stood for 5.6mln IPR registrations, whereof 50.5% were Trademarks and 19.7% to Patents, 20% to Utility Models and 10% to Industrial Designs. This means China registered 52.7% of global Industrial Property Rights and 33.5% of global Trademarks in 2015 at its 14.8% World GDP ratio (even for Trademarks China registration ratio per GDP share was 9 times the one of the USA). So I think SIPO’s reform agenda to the State Council can in spite of all the diehard nay-sayers be taken absolutely serious.

International Management Development [IMD] recently benchmarked Hong Kong Number One in Patent Protection and as Intellectual Property Market Exchange spot for IP Trading! Glad to hear in view of Carbotopia™ Patent Holding Bestrong International Ltd. being located there! Particularly as SIPO proposes also to call upon Hong Kong to facilitate execution of a Market Place for IP as well as a new Carbon Market model!

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