Cities, as the result and carrier of human civilization, gather advanced productive forces and act as an important producer of intellectual property rights, a fact which is proved by the latest statistic data showing that more than 70 percent of China’s gross domestic product comes from cities where 90 percent of universities and scientific research institutions are located and over 98 percent of overall intellectual properties are generated. Therefore, in a bid to realize the goal of building China into an innovative and moderately prosperous nation, it is of practical and historical significance to enhance the innovative and competitive competence of cities.
The evolving process of intellectual property systems in countries all over the world proves that strengthened intellectual property protection caters to the needs of transforming the economic growth mode, adjusting the industrial structure, easing the resource and environmental constraints, and enhancing the core competitiveness of cities. In recent years, with the concern of the CPC Central Committee and the State Council and under the guidance of the State Intellectual Property Office and other related authorities, intellectual property protection has been effectively promoted, which results in increased urban competitiveness and faster economic growth, accelerating the pace of building China into an innovation-driven country.
Intellectual property development closely aligns with economic growth. The Outline of the National Intellectual Property Strategies, released in June 2008 by the State Council, clearly states that by 2020, China will be built into a fully competent nation in creating, utilizing, protecting and administrating intellectual property rights, a goal that is highly consistent with the objective of building China into an innovation-oriented country. The promulgation of the Outline also signals a fact that China has taken intellectual property strategy as one of its national development strategies for the first time. In addition, the Twelfth Five-Year Plan, adopted by the fourth session of the eleventh National People’s Congress in 2011, firstly proposes a target of increasing invention patents per every ten thousand people to 3.3 by 2015. To promote the integration of intellectual property development and economic growth, the SIPO joined hands with the National Development and Reform Commission to issue Guidance on Giving Priority to the Development of High-tech Industries, which highlights intellectual property industry. Moreover, the SIPO also made concerted efforts with the State Administration of Traditional Chinese Medicine to launch Guiding Opinions on Strengthening the Intellectual Property Protection of Traditional Chinese Medicine, and with the Ministry of Commerce and other departments to develop Guiding Opinions on Promoting the International Development of Strategic Emerging Industries.
In an attempt to further harness intellectual property rights for the implementation of policies on bolstering the national scientific and technological industries, the SIPO initiated pilot programs to review intellectual property protection in major economic and scientific activities in several cities including Tianjin and Chongqing, as well as in selected cities in Jiangsu and Shaanxi provinces. Those pilot programs provide services of patent analyses and early warnings to key industries and technologies. Furthermore, appraisal review mechanisms are established in those cities to promote the commercialization of scientific and technological accomplishments, bring in overseas talents, and identify and re-examine high-tech enterprises. Those mechanisms strongly prop up industrial optimization and upgrading, thus enhancing cities' competitiveness.
Facts prove that the healthy development of urban economy and industries greatly benefits from the enhanced intellectual property protection. A good example of this is the SANY Group in Changsha, Hunan province. Considering intellectual property as the lifeblood of development, SANY Group gradually grows from a small workshop of processing traditional welding materials to a top six international heavy equipment manufacturing giant. Relying on 4,700 patent applications filed at home and abroad, the company succeeds in shifting and upgrading its growth mode, setting a good example for other domestic entities.
Intellectual property rights play a crucial role not only in cultivating excellent enterprises, but also in helping small and medium-sized companies increase their competitiveness and solve the problems of funds hardship. In 2009, the SIPO and the Ministry of Industry and Information Technology jointly launched a promotion project on enforcing intellectual property strategies in SMEs in 32 cities nationwide. Based on this project, in 2011, the two authorities provided patent trusteeship service to more than 2,100 SMEs and issued an operational guidance for this service. In 2011 only, enterprises receiving such services filed 13,191 patent applications, up 129% on a year-on-year basis, indicating that the comprehensive competitiveness of enterprises in intellectual property area has been eminently enhanced. To help SMEs solve their financing problems, the SIPO, the Ministry of Finance, and China Banking Regulatory Commission jointly issued a Notice of Strengthening Intellectual Property Rights Pledge Financing and Management Assessing for SMEs Growth and conducted intellectual property rights-collateralized financing pilot projects in about 20 cities. In 2011, SMEs secured a total of nine billion yuan bank loans by using their intellectual property rights as collateral, increasing by 28%, strongly boosting the innovation capabilities and competitiveness of those SMEs.
To actively explore new ways to protect intellectual property rights for enterprises, under the guidance of the SIPO, several cities have already created "patent insurance" service. Once the intellectual property rights are infringed, enterprises may obtain the compensation from insurance companies to cover their fees occurring in the process of investigation and litigation as well as attorneys’ fees. This May, the first patent insurance was rendered to a company in Zhenjiang, Jiangsu province. This service could eliminate worries of enterprises in protecting their innovations and could also stimulate the vitality of insured enterprises.
To implement the guiding principles of the Decision of the CPC Central Committee and the State Council on Promoting Innovation for High-technology Development and Industrialization, on the basis of the contemporary situation of urban intellectual property protection, the SIPO launched an intellectual property pilot program in 2004, and as of now, there has been up to 105 cities joining in the program. The program not only helps enhance the competitiveness of cities, but also leads to a booming economy of certain regions. Take Shenzhen as an example. As of 2011, invention patents per every ten thousand local residents have recorded 39, topping its peers nationwide. In the same year, the gross domestic product value of the city hit 1,100 billion yuan, up 10%, ranking the first among other cities (excluding municipalities directly under the central government) in China. Shenzhen’s fast development pioneered the growth of other cities in Guangdong province. In 2011, patent grants in the province reached 18,242, playing a leading role in the country. At the same period, the province’s gross domestic product value hit 4.56 trillion yuan, retaining its first place position.
Urban intellectual property protection serves economic and scientific development. The SIPO recently identified as many as 23 cities including Wuhan, Guangzhou and Shenzhen as the first batch of national IP exemplary cities. As of 2011, invention patents obtained by every ten thousand people in those cities have reached 7.02, three times more than the nation's average level and achieving the goal set in the 12th Five-Year Plan ahead of schedule.
Recently, the General Office of the State Council forwarded Several Opinions on Promoting Intellectual Property Protection in Strategic Emerging Industries formulated by ten departments including the SIPO, which set a new goal for urban intellectual property protection. The SIPO vows to stick to the scientific development theme in line with the deployment of the CPC Central Committee and the State Council, highlight the transformation of economic growth mode, enhance the guidance of urban intellectual property protection by enforcing intellectual property strategies in a bid to further increase the competitiveness of cities, thus making significant contribution to an innovative nation.
(Source: IPR in China)
