1. Laws and Regulations

In order to encourage engineers and organizations to involve themselves in inventive activities and commercialization of their innovations, regulate their behaviors and build their IP strength, increase the overall number of the nation's proprietary IPRs, the SIPO proposed a legislative suggestion, Regulation on Service Technological Innovation, to the State Council who listed it into the 2003 legislative plan. In 2003, the SIPO devised the preliminary draft of the Regulation on Service Technological Innovation after collecting relevant information from home and abroad and listening to the opinions and proposals from science and technology research institutes, universities and companies.

The competent Patent Agency Regulation was promulgated in 1991. The Regulation was in urgent need to revise because the business of patent agency had been very different after its issuance. In response to the State Council's 2003 legislative plan, the SIPO initiated the revision of the Regulation. In April, two inquiries were held for the public opinions on the draft Patent Agency Regulation. In September, the revised Regulation was posted to the nation for further opinions. In November, another inquiry was held. On the basis of hearing opinions extensively, the SIPO further revised and improved the draft. The revision of the Patent Agency Regulation would facilitate the healthy development of the business of patent agency.

With a view of meeting the present situation and standardize the administration and supervision of the business of patent agency, on the basis of hearing opinions extensively, the SIPO issued the Measures on Patent Agency Administration, prior to the revision of the Patent Agency Regulation. The Rules were in effect from 15 July 2003.

While affixing a patent marking and patent number is a legitimate right of the patentee, improper affixing might also damage the public interest. In order to regulate the acts relating to this right and maintain the normal market economy order, subject to the provisions of the Implementing Regulations of the Patent Law, the SIPO devised the Regulation on Affixing of Patent Marking and Patent Number. The launch of the Regulation explicitly informed the patentees how to enforce their affixing rights properly as well as rectifying the improper conducts.

Although the provisions on compulsory licensing have been in the Patent Law and its Implementing Regulations since 1985, there were no according specific rules for its implementation. For the benefit of enforcement of the provisions on compulsory licensing, the SIPO issued the Measures on Compulsory Licensing of Patents on 13 June 2003, providing for the procedures of requesting a compulsory license and its appraisal and adding a valuable piece to the puzzle of the nation's patent protection system.

2. Joint Mechanism of Patent Administrative Enforcement

In view of the new needs of enforcement operation after China's accession to WTO, having formulated detailed measures and steps, the SIPO planned to establish an inter-region and inter-agency joint mechanism of patent administrative enforcement. The joint mechanism of enforcement aimed to enhance coordination and cooperation among local IP offices during their enforcement operation and consequently elevate the efficiency of administrative enforcement. In April 2003, the SIPO held a workshop on joint mechanism of patent administrative enforcement in Shanghai. The attendants discussed the scope and operational procedure of the mechanism and offered constructive opinions and suggestions. On the basis of listening to the opinions and suggestions from all over the nation, the SIPO amended the mechanism.

In April 2003, aiming to coordinate and cooperate in enforcement against inter-regional patent violations, representatives from 16 provinces, autonomous regions and cities, Beijing, Tianjin, Shanghai, Heilongjiang, Shandong, Jiangsu, Zhejiang, Anhui, Fujian, Jiangxi, Hubei, Guangdong, Yunnan, Sichuan, Ningxia and Shenzhen, signed an inter-province agreement on joint mechanism of patent administrative enforcement.
 
In October, the SIPO held a national training course on patent administrative enforcement in Kunming, Yunnan Province. The course, attended by nearly 100 enforcement officers from 28 provinces, autonomous regions and municipalities, offered a curriculum relating to the need of enforcement work and provided assistance for enforcement practice.

In 2003, province-level IP offices, such as Hebei, Tianjin, Sichuan, Guizhou, Jiangsu, Yunnan, Jiangxi, Henan and Guangxi trained nearly 500 patent administrative enforcement officers within their jurisdiction.

3. Administration on Patent Agencies

Subject to the Patent Agency Regulation and Measures on Patent Agency Administration, from September to October, the SIPO conducted an annual inspection of the nation's patent agencies and agents. By the end of 2003, the first 435 patent agencies that passed the test were announced. Those agencies or agents that failed were demanded to change within the prescribed time limit.

With a view of promoting the standardization of patent agency administration, the SIPO commenced the use of the new patent agent code based on the Patent Agent Code Standard and issued new qualification certificates and patent agent licenses to the patent agents.

In order to enhance supervision over patent agencies and patent agents, according to the provisions of the Patent Agency Disciplinary Rules (trial operation), the SIPO and the province-level IP offices established Patent Agency Disciplinary Committee.

For the development of the patent work in the western areas, the SIPO held a training course towards the 12 western provinces on patent agent qualification exam in March in Chengdu.

In December, the SIPO held a workshop on the revised Implementing Rules of the Patent Cooperation Treaty (PCT) with the attendance of 130 patent agents from 59 foreign-related agencies.

The State Patent Agent Qualification Exam was held at the end of October 2002. In January 2003, the SIPO issued the certificates of patent agent qualification to 439 persons. The 2002 Patent Agent Qualification Exam was successfully concluded.

4. Administrative Reconsideration

In 2003, SIPO received a total of 51 requests for administrative reconsideration, among which 7 were related to patent applications deemed to have been withdrawn, 6 related to termination of patent right, 11 related to patents that could not be restored, 8 related to priority rights deemed not to have been claimed, 4 related to patent right deemed to be given up, 3 related to deemed non-request, 3 related to nonfeasance, 2 related to the modification of the bibliographies, 1 related to deferral fee, 1 related to no refund, 1 related to PCT international application not granted national entry, 1 related to the determination on patent filing date, 1 related to deemed no request for division of application, 1 related disapproval on deduction and exemption of fees, 1 related to denial of patent right. Among the 51 requests for administrative reconsideration, the SIPO modified 22 requests'original administrative decisions while 9 requests remained pending.

In 2003, 17 administrative litigations were brought against SIPO before the court, among which 4 were related to termination of patent right, 4 related to patent right deemed to be given up, 3 related to nonfeasance, 2 related to the modification of the bibliographies, 2 related to refusal of requests for administrative reconsideration, 1 related to PCT international application not granted national entry, 1 related to patent that could not be restored. Among the above-mentioned litigation, 9 cases were resolved. Of the 8 remaining cases, 1 related compensation.