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National Patent Development Strategy of China
1
Tip of the Iceberg
National Patent Development Strategy of China
Innovative or Ignorant
The 2015 targets included reaching 2 million patents for inventions, utility models, and designs. This would make the SIPO the busiest patent office in the world.
Quantity Does (Not) Equal Quality
1. Chinese patent offices are paid more if they approve more patents
2. Percentage of grants of patents is not as high in China as in the United States, Japan, and parts of Europe.
3. Patents in China are overhyping innovation, over 2.6 million less-than-”highest-quality” patents filed in China in 2015 alone
Mark Cohen
Is it fair to criticize China for patent quality?
“quantity is quality in patents, at least in terms of litigation. Having a thicket of patents that one can assert can be very meaningful in driving a license or a settlement.”
China Economic Strategy?
Quality Does (not) Equal Quality
i. Low-quality patent issue in the U.S. and that in part led to the AIA.
ii. Also Allison and Lemley found that patent invalidity was 46% of the U.S. decisions they examined.
Questions?
Concerns: Effects on Quality
1. Already in 2011 domestic patent application and granting of patents in China exceeded those in the United States.
2. Applications of domestic firms are up, but the percentage of domestic patents being accepted actually became lower.
3. Government Subsidies Distorting Incentives
i. Tax breaks for companies based on the number of filings.
ii. Tenure for professors who file numerous patents.
iii. Application fees for qualified individuals and companies paid for by the local governments.
Judging Patent Quality
1. Profits
2. Citations
3. International patents
Conclusions and Questions
1. Is the NPDS a step in the right direction?
2. What is the negative impact of the active development of the Chinese patent system?
3. What is the best way to inspire innovation? Is it economic incentives for patent filings?
4. Are the intentions of Chinese officials for China to be a “responsible stakeholder” in the international IP régime or does the NPDS suggest something else?