Well aware of the crucial role played by the ownership of intellectual property rights (IPR) for any automotive business, Chongqing Chang'an Automobile Co Ltd has seldom been involved in patent disputes with rival companies in the sector.

"Intellectual property rights are a kind of intangible asset. You may not hold the actual shares in an enterprise, but if you have the intellectual property rights, you have the final say," said Zhu Huarong, vice-president of Chongqing Chang'an.

In order to avoid all forms of patent infringements, Chang'an automotive has adopted a patent strategy, which safeguards its legitimate rights and interests in a comprehensive fashion.

As for patent applications, Chang'an increasingly focuses on the development of new products, as well as gives consideration to the refinement of existing products.

The company believes that patent application claims takes precedence even over marketing and has adopted a policy of: "Who owns the patents, owns the market."

The patent is not only a barrier to market entry but also the most reliable line of defense controlled by the business itself. Chang'an also realizes the significance of patents as part of the design process and the company is now keen to innovate, adopt or emulate in line with international design standards.

The company has now established design centers in Italy, Japan and China. Through these centers, Chang'an designers now provide services for many world-famous automobile manufacturers, who are required to enter into an agreement with Chang'an automotive for the purposes of patent protection. This ensures that they do not plagiarize designs registered to third parties, whilst also maintaining non-disclosure on trade secrets, which might compromise Chang'an's own patents. This has proved one of the key measures in preventing patent infringements for Chang'an automotive. 
                                                                                                      Source: China Daily