The much awaited patent application list for 2014 has been released and China is again in poll position, the experts said the World’s second largest economy lacked competitive edge, but for the 4^th consecutive year China is the highest recipient of requests for patents globally.

The number of invention patent applications received by China’s State Intellectual Property Office (SIPO) stood at 9.28 lakh (that’s 928,000 to you and me), an increase of 12.5% from 2013. Out of those invention patents received, 233,000 were granted. This follows a trend of double-digit percentage increases over the last four years, which suggests that China is taking Intellectual Property Rights (IPR) seriously and the government’s priority for boosting innovation by improving IPR protection is paying off. The China with a past of specialising in cheap fakes and reverse engineering is making way for a country that wants to see more creativity and better quality products being manufactured and sold within its borders. Despite these promising figures, infringement still happens and companies not just within China, but elsewhere, should still act with caution and put in place the appropriate measures to ensure safe protection of their ideas and innovations.

So for those wanting to dive into the Chinese market, instead of going in head first, consider some of the following suggestions for a more careful approach:

1. European IP laws operate using the first-to-use jurisdiction, whereas Chinese IP follows the first-to-file. Invention patents cost CNY 950 (approx. €145) to register. Registering a trade mark costs CNY 800 (approx. €120), whereas the cost for buying a trade mark is whatever the Chinese company quotes the party interested in buying it, so look into getting registered even if you are not ready to enter the market.
2. Filing a trade mark in the UK can take as little time as an hour, however in China it can take up to 6 months. So timing really is crucial and where possible register well in advance.
3. Infringement can occur through a variety of channels, even before going to trade fairs and Business to Business (B2B) meetings, make sure you have got your IP in order.
4. Some types of intangible assets such as business know-how and client lists cannot be protected through IPR. To effectively protect confidential information when building relationships with business partners or employees a non-disclosure agreement (NDA) can be used.
5. The registration process is made to be straight forward; however you may still want to consider an IP lawyer in China who can help you with the registration process.
6. IP is territorial, so IP registrations made in Taiwan are not valid in China and vice versa.  Apple made these mistakes and ended up shelling out $60 million in settlement fees. So consider registering your IP in each of these territories.

For more information from the China IPR SME Helpdesk about Patent Protection in China, click here.

A useful diagram from the SIPO website illustrates the patent application process, click here for more information.