Why Chinese Government is Placing Great Importance to IP protection



On the 4th of January 2019, the National People’s Congress of China has published a draft amendment to the patent law. This move is reflecting the Chinese government’s willingness to attach great importance to intellectual property protection. Any commercial law firm in China who has counseled a foreign firm with a business interest in China knows the drill: before you enter the market there are likely to be trademark squatters, bad faith patent registrants, difficulties in protecting trade secrets used by trusted employees, amongst others.

Earlier, many European and US companies were not too much interested to seek and enforce intellectual property protection in China. But the recent initiatives by the Chinese government and the fantastic services offered by the China trademark & patent law offices helped Chinese IP system to get mature.

Under the growing criticism by the foreign companies that the country is lacking the infrastructure to secure the trademark and IP of their brands. The Chinese government announced plans to open a series of intellectual property courts in order to deal with accusations. The refrom steps have been well appreciated by the patent owners around the world, including those with large U.S. patent portfolios. The Patent Administrative Authority, which has branches in various provinces and municipalities, attempts to resolve patent disputes by mediation and has the power to make orders for the infringer to stop infringing and to award compensation for damages caused by the infringement.

Skepticism of Chinese IP enforcement derives in part from structural differences in the system itself and the mechanisms to change it, relative to Western expectations. When the Chinese government identifies problems with its patent system, it rapidly affects sweeping reforms, in stark contrast to the incremental progress seen in the US. According to the China trademark & patent law office, through these progressive initiatives, Chinese government has been able to portray China as a reasonable and fair place to resolve trademark and IP related issues.