"It is essential to ensure equal treatment and protection of intellectual property rights (IPRs) for both domestic and foreign-funded enterprises, foster a first-class business environment that is market-oriented, law-based, and internationalized, attract global resources, facilitate greater utilization of foreign investment, and contribute to the domestic-international 'dual circulation' development paradigm." Recently, the China National Intellectual Property Administration (CNIPA) held its November 2024 press conference, introducing initiatives and achievements in building a first-class business environment that is market-oriented, law-based, and internationalized, as part of advancing high-standard opening-up.
In recent years, CNIPA has actively implemented decisions of the CPC Central Committee and the State Council. It has provided equal legal protection for the IPRs of various enterprises, including foreign-funded ones, while addressing their IPR-related concerns and demands. These efforts have increasingly attracted foreign enterprises to invest and operate in China.
Statistics show that from January to October this year, 92,000 invention patents granted in China were from foreign-funded enterprises, up 5.3% year-on-year, while 121,000 trademarks registered in China were from foreign-funded enterprises, with a 13.1% increase compared to the same period last year. These figures reflect the recognition of foreign-funded enterprises towards China's IPR protection efforts.
At the press conference, Guo Wen, Director General of CNIPA's Intellectual Property Protection Department, elaborated on three key areas of CNIPA's work in addressing the IPR concerns of foreign-funded enterprises:
Firstly, CNIPA has proactively aligned with high-standard international trade rules. CNIPA has acceded to nearly all major international IP treaties, including the Patent Cooperation Treaty, the Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks, and the Hague Agreement Concerning the International Registration of Industrial Designs. It is now a major user of these systems administered by the World Intellectual Property Organization (WIPO), facilitating numerous foreign enterprises in securing IPRs in China each year. Furthermore, CNIPA has completed the latest round of revisions to the Trademark Law and the Patent Law, establishing internationally recognized high-standard punitive damages systems.
Secondly, CNIPA has enforced high-standard IPR protection. CNIPA has efficiently resolved patent disputes in the pharmaceutical market review and approval process. As of the end of October 2024, it concluded 199 administrative rulings under the early resolution mechanism for drug patent disputes, protecting the rights of innovative pharmaceutical firms. Additionally, CNIPA has actively combated abusive actions related to patent invalidation, trademark registration, and trademark cancellation for non-use after three years, expedited the resolution of cases with clear facts and strong evidence, and addressed disputes involving enterprises from countries including the U.S., Germany, France, Italy, Thailand, and Denmark.
Lastly, CNIPA has established a regular communication mechanism with foreign-funded enterprises. CNIPA has organized IPR seminars for foreign-funded enterprises in key regions such as Beijing, Shanghai, Jiangsu, and Guangdong, listening to their concerns and addressing them, and provided targeted services. Many foreign representatives have praised China's rapidly improving IPR environment, highlighting its role in driving innovation and bolstering confidence to invest further. In 2023, foreign-funded enterprises' satisfaction with China's IPR protection increased by 1.44 points, continuing a steady upward trend.
Guo emphasized that CNIPA will further enhance IPR protection standards, refine its communication mechanisms with foreign-funded enterprises, and make its efforts more robust and targeted. The objective is to cultivate a fairer, more transparent, and more predictable business environment, strengthening foreign-funded enterprises' confidence in deepening their engagement with the Chinese market.