Foreign Filing Licenses for Patents in China

written by Toby MAK

 

China introduced requirements for foreign-filing licences for inventions in 2010 (when the third revision of the Patent Law came into force). It has become increasingly common for an invention to involve research teams in China and at least one foreign country. Multinational companies need to be aware that compliance with the foreign-filing licence requirements may become an issue – potentially aff ecting the validity of a corresponding Chinese patent.

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Like the US, China has its foreign-filing licence requirement for inventions. This was introduced in 2010 when the third revision of the Chinese Patent Law came into force. In my view, this was reasonable, as China has more and more inventions, and some of these could be related to national security. Various other countries have similar measures (according to www.wipo.int/pct/en/texts/nat_sec.html, in addition to the US, there are 28 countries with domestic law requirements similar to the US foreign filing licence, including China, India, France, Germany, Spain, Malaysia, Vietnam). So China having the same should be expected.

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This article was written by our IP Expert Toby Mak and originally published in the CIPA Journal. To access the full article, please click here.

Support for patentees from the Chinese Supreme Court?

The CNIPA’s decisions I am talking about are re-examination decisions (against a rejection decision of a patent application), and invalidation decisions (against a request for invalidation of a granted patent. The appeals against these CNIPA’s decision can only be filed in Beijing, as the CNIPA is always the defendant in such appeals. At present, only the Beijing IP Court will accept such appeals. A further appeal against the Beijing IP Court’s decision used to be filed at the Beijing High Court. However, from 1 January 2019, all appeals against the Beijing IP Court’s decisions on patent and utility model cases will be handled by the IP Tribunal of the China Supreme People’s Court (the CSPC) directly.

Such appeals had low, if not very low, reversal rate statistically. According to data kindly provided by Darts-IP:

  • The reversal rate of the invalidation decisions increased every year from 2014 to 2017, from about 10% to 15%; and
  • The reversal rate of the re-examination decisions increased every year from 2014 to 2017, from about 7% to 10%.

Together with the change of handling all appeals on patent and utility model cases by the IP Tribunal of the CSPC directly, the CSPC also now has a set of stipulations to handle such appeals, bring the Chinese patent re-examination/invalidation system closer to the international norm. Some major points are as below:

  • More open interpretation of sufficiency (than the CNIPA).
  • More open view on generalization (than the CNIPA).
  • Relevant technical field should refer to the lowest level in the international patent classification.
  • What a patentee says during infringement proceedings would be considered at invalidation.

This article was written by our IP Expert Toby Mak and originally published in the CIPA Journal. To access the full article, please click here.

Patent Strategies for Startups

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Today’s Post will focus on Patent Strategies for Startups in South-East Asia and has been kindly drafted for us by Ms. Chan Wai Yeng who is a patent specialist at Taylor Vinters Via LLC. Ms. Chan Wai Yeng will explore three patent strategies and several alternatives to ensure your product is best protected.

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Startups generally worry that acquiring a patent is prohibitively expensive

As discussed in the first patent article, the cost of patenting is high and generally several order of magnitudes higher than the cost of acquiring other IP rights such as trade mark and industrial design rights.

A cohesive patent strategy can yield significant competitive advantage

The high level of financial investment involved in patent filing may deter startups from developing a comprehensive IP strategy that includes patent filings at its initial development stage. However, startups with a cohesive patent strategy that aligns with their business can benefit from gaining a strong competitive advantage in the market. Having a patent filing strategy can also mitigate litigation risks from competitors.

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Design Patents and Utility Models in China: Know Before You Go

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In today’s blog-post, we will look into the relevance of Design Patents and Utility Models for European SMEs in China. China remains among the top destinations for any business looking to internationalise, and the business environment there is still evolving in terms of both production and consumption. Its growing capacity to produce sophisticated manufactures and complex services is matched by an increasingly affluent domestic consumer base that demands state-of-the-art, internationally popular brands and products.

Patent Pending

Although stories of Chinese counterfeits and brand infringements are still regular news in international media, the IPR system in China has seen considerable development in the last decade. This is propelled to a large extent by domestic industries innovating like never before and keen to protect their new technologies, and also those trying their chances with as many IPR filings as possible in order to improve their status or satisfy local government innovation drives. Whatever the reason, the number of patent applications shows the trend clearly: a 20.5% year-on-year increase for 2015 to more than 1,124,000 applications. Also, foreign patent applications are increasing fast, boasting a 14.9% year-on-year increase for 2015.

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Booming ICT Market in Thailand – Some IP Considerations for the European SMEs

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In today’s blog post, we will dive into IPR protection in the ICT Sector in Thailand: Thailand is currently the second largest buyer of ICT products and services in the ASEAN region and its ICT market is expected to grow at a fast pace in the near future, propelled by increased consumption and urbanisation, as well as the growing middle class.[1] Underpinned by the Thai Government’s new Digital Economy Policy, aiming to develop hard and soft digital infrastructure across the country and modernizing the economy through digitalization, Thailand is expected to offer many promising business opportunities for European SMEs.

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