Amidst the global wave of the biotechnology revolution, which is rapidly integrating into economic and social development, new solutions are emerging to tackle significant challenges such as health, climate change, resource and energy security, and food security. Novonesis, headquartered in Denmark and formed through the merger of two long-established companies, Novozymes and Chr. Hansen, is one of the leading enterprises in this sector. Not only has Novonesis accumulated extensive innovative achievements in the biomanufacturing industry, but it has also developed a robust intellectual property (IP) management system and protection strategies, gaining substantial experiences in IP transformation and dealing with IP infringements. Recently, CIP News' reporters visited Novonesis' China headquarters to explore how foreign enterprises are having benefit of IP equal protection in China.
Novonesis entered Chinese market as early as the 1970s and focused on establishing a strong presence in China during the 1990s by setting up research and development centers and production bases. "Novonesis's research center in Beijing was one of the first R&D centers established by a foreign biotech company in China," said Wang Cong, Director of Government Affairs and Public Relations of Novonesis Asia-Pacific. Currently, Novonesis has established comprehensive industrial structure and systems in China, spanning from R&D to production and supply chains across six cities.
Dr. Wu Wenping, Chief Scientist of Novonesis Asia-Pacific, explained that after entering the Chinese market, the company closely followed China's economic development and the needs of its people, continuously launching innovations and applications tailored to the local market. In recent years, Novonesis has driven technological innovation centered around enzymes, microorganisms, and proteins, promoting sustainable development across multiple industries, including food and beverages, and bioenergy.
"New quality productive forces are the new track for competition. The biotechnology industry has become one of the strategic emerging industries of China, and we are looking forward to the vigorous development of China's bioeconomy," said Wang. She noted that China has many advantages in developing biotechnology: a large market with significant potential; a complete industrial chain in the biotechnology sector, including the world's largest fermentation capacity; active R&D innovation from numerous universities, research institutions, and startups in biomanufacturing; and government support for industrial innovation through improved laws and regulations.
Recognizing the importance of continuous innovation and understanding industry trends, Novonesis fully understands that a strong IP system is crucial for sustained innovation in society. "As an R&D-driven company, we invest approximately 10% of our annual revenue into research and development, and we have established an incentive mechanism for inventors to encourage innovation. Currently, we own hundreds of registered trademarks and 9,900 valid patents worldwide," said Zhang Yan, Head of IPO of Novonesis China. "Globally, we have an IP team of over 80 people, spreading across multiple regions, responsible for IP applications, operations, and management."
"In recent years, we have clearly felt that China's patent examination system is continuously improving, with increased efficiency and strengthened IP protection, all of which contribute to the source protection of innovative achievements," said Zhang. Novonesis was one of the first biotech companies to have its IP rights successfully validated and enforced in China, thanks to the IP authorities' focus on refining examination policies based on the needs of innovators. During this process, Novonesis actively cooperated with the Chinese government to improve patent examination standards in the field of biomolecules. The invalidation case involving the company's patent on "thermostable glucoamylase" was selected as one of China's top ten typical IP cases by the courts.
Earlier this year, four final judgments from China's Supreme People's Court significantly boosted Novonesis' confidence in pursuing IP judicial protection in China, further solidifying the company's commitment to investing in the country. "The success of these cases not only marks a significant milestone in protecting our innovations, but also brings encouraging news to the entire biotechnology industry," said Xie Danfang, Director and Head of Regional Legal of Novonesis Asia-Pacific. "The trial experience in these cases has deeply impressed us with China's continuously improving IP judicial system, the increasing severity of penalties for IP infringement, and the equal protection of IP rights for both domestic and foreign right holders in China."
Having operated in the Chinese market for many years, Novonesis has also benefited from China's unique IP protection system. In the meantime, the company has expectations regarding the execution of judicial rulings, administrative filing standards, burden of proof, and the coordination between judicial and administrative protection, which they hope that the IP system and protection mechanisms will operate more swiftly and efficiently in the future, and that more severe penalties for malicious infringers will better deter IP violations. "Compared to when we first entered China, the awareness of IP protection across all sectors of Chinese society has significantly improved. We hope that China will continue to leverage the advantages of its IP system to ensure the long-term benefits for the biotechnology industry," Xie summarized.