1. Patent and GDP, R&D Expenses, Royalties on Using and Licensing Exclusive Rights

The year of 2001 was the first year of the "Tenth Five-year" Plan, with a sharp increasing of patent applications as in the "Ninth Five-year" period (in 1996 patent applications exceeded 100,000, while in 2001 exceeded 200,000). Compared with the first half of 2001, the domestic and foreign applications respectively increased by 18.1% and 24.9%BXamong which patents for inventions, utility models and Designs respectively increased by 22.2%, 15 .9% and 21.0%, continuously higher than the growth rate of domestic GDP.

Patents for inventions, as an important index, indicate the achievements in science and technology for the features of high values on technology, more expenses on R&D, and internationally recognized for comparison in technology. In 2001 the domestic application amount of patents for inventions reached 29,962 and had an increase of about 20% on basis of high increase in 2000, accounting for 18.1% of the total domestic applications. The top ten provinces (except Taiwan), autonomous regions or municipalities directly under the Central Government in application amount of patents for inventions were Beijing, Shanghai, Guangdong, Liaoning, Jiangsu, Shandong, Zhejiang, Hubei, Sichuan, and Hunan. While the top ten provinces or cities on expenses of R&D were Beijing, Guangdong, Shanghai, Jiangsu, Shandong, Shaanxi, Sichuan, Liaoning, Hubei and Zhejiang, with a total expenses on R&D of 66.6 billion RMB, accounting for 74.3% of the total expenses on R&D in the whole country. From the above two sort orders, we can see that patents for inventions mainly come from regions enjoying more R&D fees financed by the State, and having more R&D units (colleges and universities, research institutes and enterprises) and rapid development of newly emerging industries. During the "Ninth Five-year" period, the growth rate of applications of patents for inventions filed by colleges and universities, science research institutes and enterprises (with annual growth rate of 37.7%) was much higher than that of expenses on R&D (with annual growth rate of 20.8%) in the same period, the advantages of which was especially obvious at the end of the "Ninth Five-year" period. In recent years, more and more expenses were spent on R&D in China, with 89.6 billion RMB in 2000, increased by 17.9% than that in 2000. However, the patent application amount didn't indicate the appropriate growth of technological achievements for the expenses spent. Taking enterprises as an example, in 2000, 60.3% of R&D expenses of the whole country were given to enterprises, however applications of patents for inventions filed by enterprises only accounted for 30% of the total domestic applications of patents for inventions. Colleges and universities and R&D institutes also had the same problems.

The domestic applications of patents for inventions had increased at an average annual growth rate of 13.3% in 16 years since the implementation of the Chinese Patent Law. The statistics of patents (especially patents for inventions) was no longer a simple written index, the role of which was more and more important in economy and technological innovation.

The Table bellow compared the situation of domestic applications of patents for inventions and the income and expenditure of royalties of using and licensing exclusive rights.

From the table, we could see that the amount of foreign applications of patents for inventions in China was many times than that of Chinese ones in foreign countries. Obvious gap existed between the income and expenditure of royalties of using and licensing exclusive rights, which in import was much higher than which in export. The statistics showed that on the one hand, with the further development of China's reform and opening up, foreign companies and institutes attached great importance to the huge market of China and expected to solidify and expand their market share through intellectual property protection. Continuous increase of foreign applications of patents for inventions to China and the flowing support of capitals and hi-tech not only promoted the leaping development of scientific research but also was conducive to the later advantages of China. On the other hand, since most of the major hi-tech fields were occupied by foreign patents in China and the gap in science and technology, the import of relevant rights would continued to increase in a rather long period. Although the amount of Chinese applications of patents for inventions to foreign countries and the export of relevant rights continued increasing in recent years, there still was great gap compared with developed countries. In 2001, faced with both opportunities and challenges after China's formal accession to WTO, it was a serious problem worth thinking about that how to maintain the relevant advantages in some Chinese traditional advantageous industries, enhance the technology importation, digestion, absorbing and innovation in some relative disadvantageous industries, and catch up with developed countries in hi-tech fields, thus engendered more self-owning intellectual property rights and changed the disadvantageous situation of China. Note: 1. Statistics regarding GDP were that in 2000, which originated from the Annual Statistics of China in 2001 provided by the State Statistics Bureau.

2. Statistics regarding expenses on R&D were that in 2000, which originated from the Statistics of Science and Technology in China in 2001 provided by the Ministry of Science and Technology.

3. Royalties on Using and Licensing of Exclusive Rights means the expenditure and income traded between residents and non-residents on using the exclusive rights of intangible, non-productive and non-financial assets after approval and original works and models with licensing agreement, among which the transfer and license of patents are included.

4. Statistics regarding royalties on using and licensing of exclusive rights originated from the International Balance of Income and Expenditure in China published by the State Foreign Exchange Administration.

2. Patent Filings

In 2001, SIPO received 203,573 patent applications for inventions, utility models and industrial Designs, an increase of 32,891 or 19.3% as compared with 170,682 of the previous year.

By December 31, 2001, an accumulated number of 1,370,000 patent applications had been filed with SIPO. Among those, 1,138,633 were national applications, accounting for 83.1% of the total, and 231,367 were foreign applications, accounting for 16.9% of the total.

Since SIPO officially became member state of the Patent Cooperation Treaty (PCT) in 1994, a total of 3,421 international applications had been received by 2001. Also SIPO received 3,283 search copies of international applications, of which 2,766 reports were established. In addition, 1,585 requests were received for international preliminary examination, of which 1,031 were completed. Among all international filings entering into the national phase of China, 78,446 were for inventions, 23 for utility models. In 2001 alone, a total of 1,654 international filings and 1,574 international search copies were received by SIPO, and 1,467 international research reports were established. SIPO also received 682 requests for international preliminary examination of which 333 were completed. Among the international filings entering into the national phase of China, 19, 027 were for inventions and 4 for utility models.

What was distinguishable for the patent applications in 2001 was (1) in terms of the numbers of the three kinds of patent applications, the applications for patent for inventions were 63,204, an increase of 22.1 % over 51, 747 of the previous year. The applications for utility models were 79,722, an increase of 15.8 % over 68,815 of the previous year. The applications for industrial Designs were 60,647, an increase of 21.0% over 50,120 of the previous year. (2) With regard to the national and foreign filings, most of the domestic applications were patents for utility models and industrial Designs, accounting for 81.9%, while most of the foreign ones were patents for inventions, accounting for 87.7%. (3) According to the application constitution of the three kinds of patent filed by domestic and foreign applicants, domestic applications of patents for inventions were 30,038, proportion of which of the total, 47.5%, decreased a little bit than that of the previous year, but foreign applications accounted for more than 90% of the total and almost maintained the same growth rate compared with the previous years.

3. Distributing of Patent Applications by Region, Industry

By December 31,2001,109 countries and regions had filed their applications in China. In the year 2001,China received applications from 72 countries and regions, 4 of which were the first time to file application in China. They were the Bali(2), Costarica, Aleria, Irap (1 from each country ). The top ten countries in term of the patent applications were Japan, USA, Germany, Sweden, United Kingdom and Italy.

4.Distributing of Patent Applications by Technical Fields

In the year 2001, 156,,504 applications for patents for inventions and utility models were classified according to IPC, showing an increase of 34.0% as compared with 116,769 of the previous year.

As far as the classification of the applications for patents for inventions was concerned, applications related to electronic data processing (G06F) took the lead for the first time in 2001,  with the domestic applications accounted for nearly 56.9%. Applications related to compounds for medical, dental, and cosmetic purpose (A61K), which used to rank the first for ten years, ranked the 2nd, in which domestic applications accounted for more than 70%. Applications related to semiconductor parts ranked the 3rd, among which the amount of foreign applications doubled the domestic ones. (2) Applications related to peptide and amino acid (C07K), which was the hot spot in 2000, decreased a half in 2001, ranking the 5th place domestically. Besides, applications related to medicine (A61K) and electronic data processing (G06F) ranked in the upper echelon for the 6th year. (3) The top ten foreign applications focused on the same sub-classifications with those of the previous year, among which foreign applications advantaged in proportion were related to information saving (G11B), heterocyclic compound (C07D), equipment for transfer, exchange and selection (H04Q), each accounting for over 70% of the total.

Since more than 99% applications for utility models were domestic applications, the ranking in fact reflected the overall status of the domestic applications for utility models. Applications related to kitchen utilities increased more than double times and ranked the first place. Those related to containers or packaging for storage or transportation of materials (B65D), which used to be the 1st for 8 years, ranked the 2nd. Applications related to electronic data processing (G06F) and so on were also listed in the top ranking positions.

5. Patent Examination and Granting

By December 31, 2001, SIPO had granted a total of 750,636 patents. In 2001 alone, 114,251 patents were granted, an increase of 8.5% over 105,345 of the previous year.

In 2001, 50,365 applications for patents for inventions were published, and requests for substantive examination reached 44,634, of which 949 applications were rejected and 4,894 were withdrawn. A total of 16,296 were granted patents for inventions, an increase of 28.5% over 12,683 of the previous year.

As far as utility models were concerned, 54,359 patents were granted in 2001, a decrease of 0.7% as compared with 54,743 of the previous year. 180 were rejected, and 9,323 were withdrawn.

In 2001, 43,596 patents for industrial designs were granted, an increase of 15.0% against 37,919 of the previous year. 40 were rejected and 4,539 were withdrawn.

6. Analysis and Forecast on Aiguille Technology in the Field of Petroleum Engineering

Aiguille is one of the important tools for boring holes in petroleum engineering. There is a relative high requirement for petroleum bits on intensity, grinding resistance, and efficiency of drilling rock because it mainly depends on aiguille to touch and break up the stratum and terrane while boring a hole. According to the difference in structure and function, petroleum bits mainly include core bit (E21B10/02-10/06), roller bit (E21B10/08-10/24), bit with leading portions (E21B10/26-34), percussion bit (E21B10/36-10/44), diamond bit (E21B10/46-10/58), jet bit (E21B10/60), bit with detachable elements (E21B10/62), and in-situ replaceable bit (E21B10/64-10/66).

From January to December 2001, the total amount of applications related to the above-mentioned bits required for publication was 44. The chart below shows the percentage of applications related to all kinds of bits, from the analysis on which we can draw following conclusions:

(1) Roller bits, as the longest and the most widely used bits in history, make up for about 70% of the total current used petroleum bits. Although roller bits are not as good as diamond bits in grinding resistance, they still occupy a rather large market share due to their mature technology and low production cost, and also due to the wide application in the industry, technological improvement on roller bits still continue. In 2001, the related applications accounted for 30% of the total applications related to bits and continued to exceed applications related to other bits.

(2) Design and production technologies on diamond bits represent newly emerged technologies and continue developing. Since grinding resistance of bits is the most important index indicating the performing capability of bits, diamond bits using diamond as cutting material become popular due to its distinguished character of grinding resistance. However the current applied scope is rather limited due to the relative high cost on material and production. The application amount accounted for 25% of the total and still was lower than that related to roller bits.

(3) Bits with leading portions become popular because at present directional oil well and horizontal oil well represent the most advanced technology in the field of petroleum engineering, which have to use such bits. In 2001, applications related such bits accounted for 20% of the total.

(4) Jet bits, percussion bits and core bits belong to the traditional bits with mature technologies and do not have many patent applications.

(5) Bits with detachable elements and in-situ replaceable bits are the most complicated in structure and the most advanced in technology, but also most expensive in production cost. Differed with above-mentioned bits, applications related to such kinds of bits are mainly filed by foreign applicants. Due to the high production cost, such bits are difficult to become popular in the large Chinese oil fields, thus related applica traditional bits with mature technologies and do not have many patent applications.

(5) Bits with detachable elements and in-situ replaceable bits are the most complicated in structure and the most advanced in technology, but also most expensive in production cost. Differed with above-mentioned bits, applications related to such kinds of bits are mainly filed by foreign applicants. Due to the high production cost, such bits are difficult to become popular in the large Chinese oil fields, thus related applications in 2001 were small in amount.

Technology Forecast:

(1) Technologies on roller bits and diamond bits respectively represent the traditional and modern bit technologies, which will continue their development. Especially technologies on diamond bits will develop faster with the development of material science. Meanwhile with the development of technologies on directional oil well, bits with leading portions will also maintain the increasing trend.

(2) Jet bits, percussion bits, core bits and other traditional bits with mature technologies will keep the stable development.

(3) Bits with detachable elements and in-situ replaceable bits will become more and more useful in the future with the mature in technology and decreased production cost though at present they are not very popular and related applications will not increase sharply.

7. Analysis and Prospect on Patent Applications Related to Digital Television Technology

In recent years, with the fast development of digital TV technology, especially the coming actual use of the high digital TV (HDTV) representing the next generation of TV broadcasting system, the relevant patent application amount maintained high. In 2001, there were about 800 patent applications in the field of TV technology, which equaled with that in 2000.

From form 1 we can see about 80% applications in the field of TV are from foreign countries, among which Japan ranks the first in application amount in this field. According to form 2, applications focus on H04N5 (transceiver and studio program producing technology) and H04N7 (compression coding technology and system transmission technology), which are hotspots in this field at present.

With the confirmation of the next generation of TV system as HDTV and the coming actual broadcasting, applications related to relevant products will further increase, such as TV top box technology, related digital recording technology, recording media technology, new type of monitors, video frequency and order program technology.

8. Analysis on Liquid Crystal Displaying Technologies and Forecast on Patent Applications

With the appearance of liquid crystal TV, the most advanced liquid crystal monitor, the liquid crystal technologies draw wide attention and develop rapidly. Patent applications related to liquid crystal parts and liquid crystal displaying technologies continue increasing and accounted for a rather large portion of the total application amount in the whole field of displaying, among which application amount in 2001 was 105. According to application origins, applications centralized in several large corporations of Japan, South Korea, the United Kingdom, Netherlands, the United States and so on, such as Japanese Hitachi, National, Semiconductor Energy Institute, Seiko, Sharp, Casio, and Korean Sumsung, Hyundai, and British Defense Ministry, US T&T, Phillips in Holland and so on. However a small amount of applications in this field are filed by domestic applicants, and most are individual applications. Patented technologies mainly focused on monitor structure, optical components, energy-plug components, driving control circuit and so on, with an invention purpose to realize high differentiation, obvious contrast and fast responsibility of liquid crystal displaying.

At present, all large corporations are active in developing new products with self-owning intellectual property rights, which not only direct towards developing projection TV with large screen, but also towards developing improved small apparatus and instrument screen. It is forecasted that the improvements on color contrast, light equality, wide visual angle of picture displaying of large screen, differentiation of small apparatus and instrument screen, and exactitude of driving part are the hotspots in patent applications.

With China's accession to WTO, patent applications in the field of liquid crystal displaying technology are expected to continue increasing, accordingly which filed by domestic research institutes and electric machine corporations will also increase.

9. Analysis and Prospect on Domestic and Foreign Patent Applications in the Field of Biotechnology

The biotherapeutics (mainly meaning drugs by genetic engineering) and the agricultural biotechnology (mainly meaning transgenic animals and plants) are presently most active in the field of modern biotechnology.

On the pharmaceutical by genetic engineering, along with the publish of human genome draft, many governments or big pharmaceutical enterprises invest and undertake gene sequencing one after another and seek for functional genes, especially study medicaments for treating major and serious diseases eg. cardiovascular disease, cancer, AIDS and so on. On the agricultural biotechnology, the sequencing of genome of some important crops will immediately be finished. In next several years focal point of research will look for favorable genes which are used to resist plant diseases and insect pests, to provide with the properties of higher yield and stress resistance etc., the security of transgenic plant is always close attracted by public, that kind of investigation will be conduct with supervisor and assure of related law and regulation.

The ratio of amout of foreign and domestic patent applications is about 4:1 before 1999, it has gradually raised to nearly 1:1 in the field of modern biotechnology at present. On the view of technological content and technological field, there are great differences between foreign and domestic applications, for example foreign applications are mostly related to original invention. The invention of novel genes, peptides, gene therapy occupies a larger percentage in the foreign applications. Since the direct reasons leading to going up of amount of domestic applications are inclination of policy of course, meanwhile another important reason is the rapid elevation of number of applications on human novel genes and DNA chips, this kind of invention occupied greatest percentage, it is the second place which is the invention about "modified genes or peptides" and "transgenic plants or animals" belonging to "improvement invention or combinatory invention".

Original inventions such as genes or peptides for treating human diseases, genes relating to higher field or high quality of crops occupy the largest ratio and increase gradually in the foreign patent applications next several years.

The invention relating to human novel genes and DNA chips will gradually decline from the first place in the domestic applications, because the capacity of study of function of genes is in general relatively weak, the majority of the function of gene is only presumed using procedure, not confirmed by credible experiments, thus leading to gaining little benefits from market. Due to without own novel genes, there are the risk of infringement of related genes after DNA chips are entered into market. So the investigation of DNA chips are limited certainly; however the amount of "improvement or combinatory invention " will be raised up to the first place in the domestic application due to pursuing short term benefits, weak capacity of develop novel genetic drugs, insufficient recognition, as well as lower financial capacity. 

2013-07-17