China Reports Significant Advances in Intellectual Property Rights Development in 2019

The State Council Information Office convened a press conference in Beijing to present an overview of China's intellectual property rights (IPR) development in 2019. The event coincided with the 2020 National Intellectual Property Publicity Week and featured remarks from Mr. Shen Changyu, director of the National Intellectual Property Administration (NIPA), alongside Mr. He Zhimin, NIPA vice director, and Mr. Yu Cike, director of the Copyright Administration under the Publicity Department of the Communist Party of China Central Committee.

Mr. Shen emphasized the increasingly prominent role of IPR in China's governance framework during 2019. He highlighted directives from General Secretary Xi Jinping delivered at major international forums such as the 2nd Belt and Road Forum for International Cooperation and the 2nd China International Import Expo. Notably, the CPC Central Committee approved "The Guideline on Strengthening Intellectual Property Rights Protection," jointly issued by the General Offices of the CPC Central Committee and the State Council, underscoring the strategic priority of IPR.

The fourth plenary session of the 19th CPC Central Committee further advanced plans to enhance IPR protection, including establishing punitive damages for infringement and bolstering enterprise trade secret safeguards. Premier Li Keqiang also chaired a State Council executive meeting focused on improving IPR protection, promoting intellectual property pledge financing, and stimulating innovation within the real economy.

In line with these directives, China accelerated efforts to become a country strong in intellectual property. The NIPA completed the first draft of an outline for building China into an IP-strong nation for 2021-2035 and implemented the 2019 national IPR strategy plan alongside the 13th Five-Year Plan (2016-2020) for IPR protection and utilization.

Efficiency improvements were notable: the average examination period for high-value patents was reduced to 17.3 months, and trademark registration averaged 4.5 months, surpassing State Council targets. Fee reductions and exemptions for patents and trademarks totaled 7.93 billion yuan. Additionally, 18 new demonstration cities, 88 pilot demonstration counties, 35 pilot demonstration parks, and 2,239 demonstration enterprises were designated to foster IP strength at local levels. National copyright demonstration efforts also expanded with new cities, parks, and work units recognized.

Legal reforms advanced with the completion of Trademark Law amendments increasing statutory compensation for malicious infringement from under three times to under five times the damage, and raising the compensation cap from 3 million to 5 million yuan. The Law Against Unfair Competition was revised to strengthen trade secret protections. Work continued on patent law amendments and guidelines for the Copyright Law and Protection of New Varieties of Plants. The Regulation on the Management of Human Genetic Resources was published, and multiple regulations concerning patent commissioning, agent examinations, trademark management, and foreign copyright authentication offices were updated. The Guidelines on Anti-Monopoly Law Enforcement in the IPR field were introduced, deepening the legal framework for IP protection.

Comprehensive enforcement efforts were intensified. The General Offices of the CPC Central Committee and State Council issued "Opinions on Strengthening the Protection of Intellectual Property Rights" and a 2020-2021 Implementation Plan. The number of IPR protection and rapid response centers reached 46. Targeted campaigns such as "Iron Fist," "Sword Net," "Net Sword," and "Dragon Fly" addressed infringement and counterfeiting. Authorities handled 32,000 trademark infringement cases, 7,000 trademark counterfeiting cases valued at 510 million yuan, 39,000 patent infringement administrative cases, and 10,000 unfair competition cases worth 3.16 billion yuan. Public security registered 24,000 criminal IPR infringement cases, solved 16,000, and arrested 29,000 suspects involving 8.67 billion yuan. Customs seized 51,000 batches of infringing goods. Courts registered 480,000 new IPR cases and closed 475,000. Procuratorates approved arrests and charges in thousands of criminal IPR cases. Public satisfaction with IPR protection rose to 78.98 points.

Quality indicators showed steady improvement. Mainland China granted 1.862 million invention patents, achieving 13.3 patents per 10,000 people ahead of the 13th Five-Year Plan goal. Effective registered trademarks reached 25.219 million, averaging one trademark per 4.9 market entities. Geographical indication products numbered 2,385 with 5,324 trademarks and 8,484 enterprises approved. Integrated circuit layout designs registered totaled 8,319. New agricultural and forest plant species approved numbered 2,288 and 439 respectively. Copyright registrations included 2.702 million works and 1.484 million computer software pieces. According to the World Intellectual Property Organization, China ranked 14th in the 2019 Global Innovation Index, up three places from 2018 and first among middle-income economies. China led the world with 59,000 international patent applications via the Patent Cooperation Treaty and ranked third globally with 6,339 international trademark registrations via the Madrid System.

The effectiveness of IPR application also improved. New statistical categories for patent-intensive industries revealed an added value exceeding 10.7 trillion yuan in 2018, accounting for 11.6% of GDP and underpinning high-quality economic growth. The copyright industry contributed 6.6 trillion yuan or 7.37% of GDP. The trademark and brand strategy accelerated the transition from "Made in China" to "Brand in China," with geographical indications supporting poverty alleviation and rural revitalization. Patent and trademark pledge financing reached 151.5 billion yuan, a 23.8% increase from 2018, while copyrights worth 7.3 billion yuan served as collateral for financing nearly 10,000 enterprises. Technical contracts involving IPR totaled 928.69 billion yuan, up 137.7% year-on-year. Intellectual property royalty trade reached $41 billion, with exports at $6.6 billion, up 18.8% year-on-year.

International cooperation was strengthened through agreements such as the joint statement concluding negotiations on geographical indications between China and the European Union and a cooperation agreement with France. Progress under the Belt and Road Initiative included eight cooperation programs with notable results. China enhanced collaboration with the World Intellectual Property Organization and the World Trade Organization and actively engaged in global IPR governance. Preparations advanced for China's accession to the Hague Agreement on the International Deposit of Industrial Designs. The Beijing Treaty on Audiovisual Performances, the first international IP agreement named after a Chinese city, was set to enter into force on April 28, 2020, following ratification by 31 eligible parties.

These comprehensive developments underscore China's commitment to strengthening intellectual property rights as a cornerstone of innovation, economic growth, and international cooperation.