Noted for its international products and innovation, electronics giant Philips is also a pioneer in patent protection in China, ranking third among foreign companies for its more than 1,600 filings last year alone.

Such large numbers don't surprise industry insiders, as they reflect a worldwide trend - what Ruud Peters, company vice-president and CEO of Philips Intellectual Property and Standards, calls "global patent warming".

In fact overheated patent activity threatens to overwhelm the entire system, he said.

Due to globalization, burgeoning numbers of companies are filing patents in major countries and regions around the world, such as the United States, Europe - and now China.

Many new participants, including small and medium companies as well as universities, are also filing more patents.

Peters said the number of patent fillings worldwide was about 10.5 million in 2007, with 4.2 million applications pending and 6.3 million approved.

"We have too many patents today and the patent system is facing the risk of being overwhelmed," Peters said.

"Most patent offices have been unable to cope with the steep increase in patent filings and a huge backlog of unexamined applications is building," Peters said. "For a time it was easier to get a patent granted, so the patent quality has decreased."

Lower quality patents might have negative effects on the industry as well as on the general public, he said.

Outlandish or bad patents, frivolous lawsuits and high damage awards have triggered a public debate about the functioning of the entire system.

Peters said too many patents are awarded for inventions that are too small, hampering rather than stimulating innovation.

"We need a system to reward people or companies that take financial risks to invest in new technology-based innovations and to facilitate technology trading in a globalized world," he said.

A good patent system will stimulate the rapid development of technology, create more jobs and contribute to economic growth and prosperity, he said.

Because more companies operate globally, they need patents in more countries to support their businesses, but could be approved in one country while denied in another due to different legal systems.

Building a uniform patent system is a global concern because shortened application times and reduced costs are crucial, Peters said.

He noted that patent offices in the West recently became stricter in response to the flurry of applications.

In the US or Europe, the patent approval rate was around 70 percent, but fell to about 40 percent in 2009.

Rejections are good for the system, Peters said, because companies that continue to be denied will be more selective in filing future patents, which will in turn reduce the patent backlog.

He noted that China is becoming an intellectual property powerhouse as "Chinese multinational corporations are filing more patents outside China and subsidies from the Chinese government encourages companies to file patents."

The nation is also becoming an important country for international patent filings through the Patent Cooperation Treaty.

(Source: China Daily)