Wang Jingchuan

Commissioner, State Intellectual Property Office of China

May 18, 2005

Mr. Chairman, Ladies and Gentlemen, and Friends, Good Morning!

In the season filled with vigor and hope, renowned managers, scholars and government officials from the world gather in Beijing, attending the Fortune Global Forum: China and the New Asian Century.  It is a great honor for me to be invited to this important event and share my experiences in IPR. 

I would like to avail myself of the opportunity to offer my personal comments on the theme, intellectual property: expecting more mutual understanding and cooperation.

Started from the industrial revolution in Europe, the ways of production and living of the human beings have experienced constant profound changes.  The economic and trade activities of the human beings kept expanding to larger scope and more areas.  Along the way, IP system was established and developed in the past few hundred years. 

History has shown that only when the scope, way and level of protection of IP fit the level of productivity of a country and evolve with the development, could IP protection facilitate scientific innovation, cultural prosperity, economic development and social progress.  Conversely, it would produce negative effects.

China is a country with long history.  Numerous scientists, inventors, litterateurs and artists created huge amounts of excellent knowledge and wisdom, which substantially contributed to the development of human civilization and the progress of the human society.

It is only 20 years since China established its IP system which has developed very fast.  While following the international IP rules, we have exerted efforts to balance the interests of IP creators, owners, users, consumers and the public in accordance with China’s actual situation.  Our efforts have facilitated China’s economic development and social progress.

―― To establish an IP legal system compatible with international rules and suitable for China’s national situation

China has promulgated and implemented the Patent Law, Trademark Law, Copyright Law, Regulation on the Protection of Computer Software, Regulation on the Protection of the Layout Designs of the Integrated Circuits, Regulation on the Collective Management of Copyright, Regulation on the Administration of Phonograms, Regulation on the Protection of New Varieties of Plants, Regulation on the Customs Protection of Intellectual Property, Regulation on the Administration of Special Labels, Regulation on the Protection of Olympic Symbols, other IP laws and regulations, implementing regulations and judicial interpretations.  Prior and after China’s accession to the WTO, China amended the IP laws and regulations across the board, giving more highlight to promote economic and social development which is the aim of the IP laws.  The amended laws are consistent with the TRIPS agreement and other intellectual property rules. 

―― To protect IP with judicial and administrative methods through the Two Routes Working Parallel mechanism

Judicial protection is a basic route for IP protection.  Any individual, legal person or other organization whose IP rights are infringed may institute legal proceedings to a people’s court.  The court would adjudicate the case independently according to law.  The Chinese courts may adjudicate the IP disputes and impose civil liabilities under the Civil Code as well as impose criminal liabilities up to seven-year imprisonment to those IPR violators under the Criminal Code.  In December 2004, China issued the Judicial Interpretations on the Applicable Laws of IP Criminal Violations, lowering the threshold of conviction and raising the operability of the enforcement of laws.

By administrative protection the administrative authorities may not only investigate and handle IP violations under the request of a party but also take ex-officio actions.  State and local IP offices, administrations for industry and commerce, copyright offices, quality inspection administrations, police departments and customs have established a joint working mechanism to carry out inter-agency and inter-region coalition administrative enforcement and have intensified administrative enforcement protection.  In May 2004, China established the State IP Protection Working Group with Vice Premier Wu Yi at the helm.  The Group decided to undertake a special campaign for IP protection.  As deployed under a general plan, state and local governments at all levels set the primary focus on key protection areas, trademark, copyright and patent, on the key links of goods circulation, import and export, exhibitions and wholesale markets, and on the key areas with rampant production and sale of counterfeits by investigating high-profile infringement cases, enforcing the law accordingly and cracking down on IP violations.  Positive effects have been achieved so far. 

―― To unremittingly pursue the promotion and training programs of IP

The Chinese government attaches great importance to the promotion and training programs of IP. Knowledge and Fortune, a feature program, has been broadcast by both the CCTV and local TV stations.  Promotion and awareness raising campaigns are launched by means of various media, including the press, broadcasting and the Internet and also by organizing seminars, so as to foster an atmosphere of respecting and protecting IP. Since the first World IP Day in 2001, every April 26 afterwards witnessed the carrying out of nationwide IP protection activities during the IP Week. This year, on April 26, Protecting IP- We are on the Move, a campaign comprising a series of grand activities are initiated. Enormous efforts have been made by China to create an amicable social atmosphere of respecting labor, knowledge, talents and creation, and to raise the public awareness of respecting and protecting IP.

In the meantime training programs of IP basics are launched for government officials of various levels as well as management staff from enterprises and R&D institutions. Statistics shows that in the past three years more than 900 IP training courses are organized by various local provincial IP offices, and more than 120,000 personnel benefited from the training which contributed to the dissemination of IP knowledge.

―― Conspicuous improvement in innovative, management and implementation capacity of IP

By the end of 2004, China had accepted an accumulative total of 2,280,000 patent applications, including patent for inventions, utility models and industrial designs. Of these applications, 1,870,000 were from domestic applicants and 410,000 were from overseas applicants (mainly applications for patents for inventions), respectively accounting for 82% and 18%. The total amount of granted patents was 1,250,000, of which 87% was domestic, and 13% overseas, amounting respectively to 1,090,000 and 160,000. Over the past five years, the average increase for invention, utility model and industrial design applications was 21% and the average annual increase for applications for patents for invention was 29%. At the same time, the patent examination cycle has been considerably shortened to a level comparable to that of the U.S., Japan and the European Patent Office.

The total amount of trademark applications accepted was 3,550,000 and registered trademarks amounted to 2,240,000 with 400,000 from overseas, accounting for 18%.

―― To actively promote international exchanges and cooperation in the IP field

China participates in the adjustment of international IP rules in a responsible and constructive manner. Amicable partnerships have been established between the various IP administrative agencies and their counterparts in other countries as well as the international organizations such as the World Intellectual Property Organization (WIPO). In September 2003, relevant departments in China set up a mechanism for regular communication and coordination with foreign invested enterprises. Under the mechanism, quarterly meetings are held to solicit comments and suggestions regarding IP protection from the enterprises.

Facts show that China has scored great achievements in IP in only two decades. Nevertheless we bear in mind that for such a large developing country like China with its 1,300,000,000 population, it is still an arduous task for us to continuously improve the modern IP system, to enhance the innovation, management, implementation and protection capacity of IP, and to reinforce the public awareness of respecting and protecting IP. There is still a long way to go.

In the establishment and development of IP system, China has received positive support and help, and genuine understanding and cooperation from the international society, which is deeply appreciated by us.

To reasonably and effectively protect IP is a historical and global issue, and IP infringement is a historical and global phenomenon.

Compared to the developed countries, the developing countries still lag behind in terms of economic development and scientific and technological achievements. Disparities in IP still exist. The establishment of IP system is relatively late and the public’s awareness of IP is relatively weak. To establish and improve the modern IP system and to effectively protect IP, the developing countries need not only to spend considerable efforts, but also has to go through a long way. Such gaps and disparities must be recognized.

Rapid development of science and technology and accelerated economic globalization has brought IP protection issues to the limelight of the international community since the 1980s, and IP issues often constitute a topical focus in economic and trade matters.

It calls for concerted efforts by the international community to formulate the international IP rules which fully embody the principle of equity and justice and which incorporate the national interests of different countries at different development stages, and to effectively contain infringements and violations of IP. Therefore it is of special importance that countries engage in adequate communications and constructive consultations and achieve mutual progress and understanding. It is also important to foster a harmonious environment that favors dialogue and cooperation instead of confrontation and friction.

As a large and responsible country, China will adhere to the road of peaceful development. In the future we will continue to earnestly honor our international commitments of IP protection, and strengthen the cooperation with other countries and international organizations in a more positive and open manner to promote the establishment of and environment for a favorable IP system worldwide.

Thank you very much.

2005-05-23

2005-05-23