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Interview  
[Anchorwoman] Good morning, everybody! Today we are honored to have Mr. Tian Lipu, commissioner of the State Intellectual Property Office, here with us for an online interview. Welcome to Gov.cn!　[2006-02-15 10:06:35]
[SIPO Commissioner Tian Lipu]Good morning! It is my great pleasure to be at the recently opened website of the Central People' s Government of the People' s Republic of China (www.Gov.cn), and to discuss with you about intellectual property. I would like to take this opportunity to wish you all a happy Chinese New Year!　[2006-02-15 10:16:20]
[Anchorwoman] China's intellectual property system was established about twenty years ago. Though its history is not long, its development is fast. After China' s entry to WTO, it is in a fast-developing stage. Mr. Tian, would you please give us a brief introduction to the development of the intellectual property system in China?　[2006-02-15 10:18:04]
[Tian Lipu]As the economic globalization and science and technology advancement are getting fast paced in the 21st Century, the intellectual property system, as a basic legal system in encouraging innovation and promoting social and economic development, has given its position a historic boost in the social and economic development. IPR protection has also drawn extensive attention in the international community.　[2006-02-15 10:20:46]
[Tian Lipu] The unprecedented progress of the international IP system is shown as below: IP has become the strategic resource in building up national economic and technological strength and an international competitive edge, as well as in protecting national interests and economic security;　[2006-02-15 10:23:07]
[Tian Lipu] as IP internationalizes, it has become an important part of international scientific, economic, trade and cultural cooperation and exchanges; while there is fast development in such fields as information technology, life science, oceanology and new-material technology, IP legislation has been enhanced in many countries. The scope of IPR protection has expanded constantly, while the protecting level of IPR continues to be strengthened;　[2006-02-15 10:24:46]
[Tian Lipu] as IP leads to high productivity and products with a high added value, enterprises take IP as a major measure to win market shares and get competitive advantages; the ever-increasing IP applications and registrations also prove that IP, especially in the fields of core technology or new technology, has become the focus of the competing countries.　[2006-02-15 10:26:33]
[Anchorwoman] At present, China's enterprises do not have enough IPR of core technology. They own little IPR of poor quality. Any comment?　[2006-02-15 10:31:41]
[Tian Lipu] While talking about the establishments from 2001 to 2005, we should also notice that the overall situation of IPR in China is not in line with the requirement of the Chinese social, economic and science development, or with the new international IP development trend:　[2006-02-15 10:35:18]
[Tian Lipu] Ⅰ. Policies on IPR need to be improved. They are not in line with IP legislation; Ⅱ. Competent IP Authorities need to improve their management methods and efficiency; Ⅲ. Enterprises do not make sufficient use of the present IP system and they lack experts who are good at settling IP disputes, especially international IP disputes; Ⅳ. Enterprises do not have enough IPR of core technology. They own little IPR and those are of poor quality; Ⅴ. Some government leaders need to further realize the importance of the work of IP; Ⅵ. Social IPR awareness also needs to be further improved.　[2006-02-15 10:36:10]
[Tian Lipu] The first twenty years of this century are considered a crucial and strategic period for China's social and economic progress, as well as IP development. The economic structure will be transformed and the profit growth will come from a different sector. This constitutes a challenge as well as an opportunity for the IP development in the country. In order to attain the goal of building a creativity-based country, we should consider our position, identify our needs and take the opportunity we have to improve the national competitive edge.　[2006-02-15 10:38:04]
[Anchorwoman] Would you please brief us on the patent application situation and analyze the statistics?　[2006-02-15 10:39:18]
[Tian Lipu] In 2005, SIPO received 476,264 patent applications of three kinds, representing a 34.6% increase compared to 353,807 applications in 2004. Of the total, 80.5% involved domestic applications, which numbered 383,157. It increased 37.4% compared to 278,943 domestic applications in 2004. Of the total patent applications, 19.5% or 93,107, involved foreign applications. It increased 24.4% compared to 74,864 foreign patent applications in 2004.　[2006-02-15 10:40:04]
[Tian Lipu] Of the patent applications in 2005, there were 173,327 invention patent applications, up 33.2% compared to 130,133 applications in 2004; there were 139,566 utility model applications, an increase of 23.7% compared to 112,825 applications last year; there were 163,371 design applications, a rise of 47.4% over 110,849 applications last year.　[2006-02-15 10:41:43]
[Tian Lipu] Of the invention patent applications in 2005, 53.9% was domestic, or 93,485 applications. It increased 42.1% compared to 65,786 applications in 2004. The rest 46.1%, or 79,842, were foreign applications. It increased 24.1% compared to the 64,347 foreign invention patent applications last year. The top province in terms of the application number was Guangdong.　[2006-02-15 10:42:52]
[Tian Lipu] The patent applications in 2005 were featured by the following facts: Ⅰ. That the increase rate of patent applications was the highest in the past 18 years. Ⅱ. That the annual increase rate of domestic applications was 13% higher than that of foreign applications. Ⅲ. That the increase rate of domestic invention patent applications was higher than that of foreign invention patent applications.　[2006-02-15 10:46:14]
[Tian Lipu] Ⅳ. That the increase rate of domestic service patent applications was 9% higher than that of domestic non-service patent applications, and that of the domestic invention service patent was 19% higher than that of the domestic invention non-service patent applications. Of the domestic invention patent applications in 2000, only half were service patent applications and the other half came from individuals. But in 2005, invention service patent applications accounted for 67% of the total.　[2006-02-15 10:48:22]
[Tian Lipu] Ⅴ. That most of the domestic service patent applications were filed by enterprises. On February 3, a statistics on the website of the World Intellectal Property Organization indicated that Chinese nationals ranked in the top 10 in the category of filing international patent applications with the Organization, namely, PCT. The picture clearly indicates Chinese nationals quickly learned to file patent applications abroad in addition to be active at home. The information from the trademark office shows, in 2005, the number of trademark registrations was 660,000, hitting an all-time high. When we add the patent and trademark numbers together, the number will exceed 1.1 million, a no small number in any way and among the top in the world. It could be seen definitely as China's prgress in IP protection.　[2006-02-15 10:50:19]
[Anchorwoman] What about patent granting in 2005?　[2006-02-15 11:03:46]
[Tian Lipu] In 2005, 214,003 patents were granted by SIPO,up 12.5%. Of them, 171,619 were domestic patents, an increase of 13.4%. Of the granted patents, invention, utility models and industrial designs accounted for 25%, 37% and 38%, respectively.　[2006-02-15 11:04:21]
[Anchorwoman] In 2004, the "Viagra" patent of the American Pfizer Corporation was invalidated by the Re-Examination Board of the State Intellectual Property Office, arousing some disputes. What is your comment on this?　[2006-02-15 11:08:36]
[Tian Lipu] In July 2004, the Re-Examination Board of the State Intellectual Property Office announced the decision to invalidate, according to the Chinese Patent Law, the patent for the medicine "Viagra" of the Pfizer Corporation. According to the Chinese law, the decision is not final and the party concerned, if not satisfied with it, could bring the case to the People's court for administrative litigation. Actually the Pfizer Corporation lodged the administrative litigation against the Re-Examination Board decision with the Beijing Municipal First Intermediate People's Court.The court started the trial and the case is now still in the judicial procedures.　[2006-02-15 11:09:47]
[Tian Lipu] China is a nation governed by law, and the Chinese Government resolutely keeps exercising administration according to law, while promoting the quality of law enforcement and guaranteeing the strict implementation of the law. Since the said patent case has already entered into judicial procedures, we hope that the corporation concerned could enforce their rights according to law.　[2006-02-15 11:14:47]
[Anchorwoman] Would you please tell us recent progress in the 3rd revision of the Patent Law of the People's Republic of China and the Implementing Regulations of the Patent Law?　[2006-02-15 11:16:02]
[Tian Lipu] The first Chinese Patent Law was promulgated on March 12, 1984 and went into effect on April 1, 1985. It has been proved in the past 20 years that the Patent Law has an essential effect in encouraging creation, protecting patent rights, speeding up science and technology development and facilitating implementation of the opening-up policy. The Patent Law and the Implementing Regulations of the Patent Law were revised in 1992 and 2000, uplifting the patent rights protection level in China. The Chinese IP system was then harmonized with the opening-up policy and with the international IP trend.　[2006-02-15 11:17:12]
[Tian Lipu] Five years have passed since the second revision of the Patent Law and its Implementing Regulations. During these years, national and international IP trends have changed greatly, especially after the 5th Session of the 16th Central Committee of the Communist Party of China. At the session, it was stated that we should build up China into an innovation-oriented country by promoting independent inventions and creation. Thus, more requirements for the Chinese Patent System had to be met.　[2006-02-15 11:18:20]
[Tian Lipu] In addition, international IP rules have gone through many changes. It might be neccessary for us to make certain adjustments accordingly. SIPO has initiated the prep work for the third revision of the patent law. We opened relevant themes to the public and solicit ideas and comments. We are planning to submit our ideas and schemes to the State Council on the revision and trying to conlcude it in a not long period. The revision is expected to serve as robust legislative support for independent innovation and development of science and technology for China in the Eleventh Five-Year Period and a longer stretch of time.　[2006-02-15 11:20:30]
[Anchorwoman] Recently, reports on arguments such as "rubbish patents account for more than 50% of all patents in China", "questionable patents", are carried on some websites, confusing a large part of the public. Please comment on these reports.　[2006-02-15 11:32:57]
[Tian Lipu] The so-called "questionable patents" are defined by the US Federal Trade Commission in its report titled " To Promote Innovation: The Proper Balance of Competition and Patent Law and Policy" as "the one that is likely invalid or contains claims that are likely overly broad". With regard to so-called "rubbish patents", there is no definition of them in either domestic or foreign formal documents or research reports. Based upon an analysis of those website reports, one could see that the "rubbish patents" actually refer to those without any innovation at all, and most of which are utility models and designs.　[2006-02-15 11:33:52]
[Tian Lipu] First of all, we must be aware that the "questionable patents" are not equivalent to the "rubbish patents". "Questionable patents" play an indispensable role in making certain contributions to technological development. One precondition for granting a patent requires an inventive step, while technological development is a cumulative process and development of any new technology can not be separated from existing technologies. For a majority of those patent applications that are not qualified for patents due to lack of patentability such as an inventive step, they reveal, more or less, some novel features of technologies, which constitute a component part of further technological development. Therefore, these "questionable patents" are in no way rubbish.　[2006-02-15 11:35:30]
[Tian Lipu] Secondly, we must realize that fierce arguments on websites are targeted at "rubbish patents" rather than "questionable patents". We should properly understand and handle the issue of "rubbish patents", emergence of which is due to some unavoidable reasons. In China, design and utility model patents are granted without substantive examination. This practice is considered the objective reason resulting in those low quality patents.　[2006-02-15 11:38:44]
[Tian Lipu] However, the practice of no substantive examination of design and utility model applications is adopted not only by China but also by many other countries. The main consideration behind is to save social costs. Innovations contained in utility models and designs are usually limited while investment in R&D of them is relatively low, but the number of filings is fairly large. If all these applications are subject to substantive examination, then enormous social and public resources will be exhausted. Logically and practically, we have had to adopt in stead the formality examination mechanism. As an unavoidable result, while social and public resources are saved, this practice gives rise to the possibility of unsatisfactory designs and utility models.　[2006-02-15 11:39:15]
[Tian Lipu] Moreover, in recent years, local governments across the nation promulgated a series of policies to encourage innovations and creations including providing financial support. These policies are surely conducive to booming creative activities and to promoting the whole nation's spirit of creativity. Nevertheless, these newly formulated policies are not flawless. For instance, because of too much emphasis placed by the said policies on the number of patent filings, a few patent applicants, for the purpose of winning financial support, file patent applications by wholly relying on existing technologies and making no innovations at all. This could be the subjective reason leading to these so-called "rubbish patents".　[2006-02-15 11:39:44]
[Tian Lipu] With regard to the news reports that recently appeared on the Internet, such as "rubbish patents account for more than 50% of all patents in China", they are seriously against the truth. On the one hand, "questionable patents" cannot be simply considered equivalent to "rubbish patents". The two are different in nature. On the other hand, the percentage of actual invalidation (around 50%) out of all the invalidation requirements should not be taken as the percentage of "rubbish patents".　[2006-02-15 11:40:18]
[Tian Lipu] This is because the patents required to be invalidated (less than 2,000 patents a year) are only one specific part of all patents and the ratio of actually invalidated ones is only minimal in comparison with the total number of patents, hence it is of no universal significance. The actually invalidated patents make up 50% of all invalidation requirements, but only account for a tiny proportion of granted patents (approximately 0.2%). Meanwhile, a majority of those invalidated patents is factually "questionable patents". Consequently, it is impossible to come to the conclusion that "rubbish patents" account for 50% of all patents in China.　[2006-02-15 11:40:49]
[Tian Lipu] It should be noted that in spite of the existence of a number of so-called "rubbish patents" among utility models and designs, the protection system for utility models and designs as well as the non-substantive-examination practice are still worthy of operation because they conform to China's national conditions and to international practice.　[2006-02-15 11:41:33]
[Tian Lipu] On the one hand, many manufacturing industries in China are engaged mainly in simple improvement and follow-on innovation of existing technologies. Apparently these technologies usually have a short life in the marketplace. The utility model and design system, which grants the right faster with lower patentability requirements on inventive step, lower costs and simpler procedures, is undoubtedly necessitated by encouraging creativity and protecting the interests of right holders. On the other hand, the exploitation of utility model and design system has promoted in China the establishment and growth of small and medium sized enterprises (SMEs) and assisted them in obtaining their own intellectual property rights. Especially in recent years, the utility model and design system has been emerging as an important tool for SMEs to effectively implement the intellectual property strategy and to promote self-made innovations and creations.　[2006-02-15 11:42:01]
[Anchorwoman] General Secretary Hu Jintao pointed out that in order to speed up development, it is essential for enterprises to develop imported technologies into more advanced ones and to improve their independent research ability. Premier Wen Jiabao noted that competition in the future would be in the field of intellectual property last year. At the beginning of 2004, Vice-Premier Wu Yi also pointed out that we should consider our position, identify our needs and push forward our IP strategy. These statements made by central government leaders have enabled us to understand the situation in our country and the world we are facing.　[2006-02-15 11:44:49]
[Tian Lipu] As a result of technology development and economic globalization, the era of a knowledge economy has arrived. The importance of IP has been identified by the international community. In such a community, respecting others' IPR and having, utilizing and protecting IPR of our own are two conditions for being part of the global economy and gaining an upper hand in it. Many countries consider creating and utilizing IP as an important way to improve their national strength and to accelerate a balanced economic development.　[2006-02-15 11:47:33]
[Tian Lipu] As for China, formulating the national IP strategy is the requirement posed by the opening-up policy and social and economic development. It is a necessary condition for us to meet the challenge of the rapidly-changing international IP trends and to protect the national interests and economic security. It is also good for establishing a sound and fair market and for improving the creative ability and competitive edge of our country. This important event has begun in 2005.　[2006-02-15 11:50:07]
[Tian Lipu] In January 2005, the State Council set up the National IP Strategy Formulating Working Group, with Vice-Premier Wu Yi as the chairman and 28 heads from central departments including SIPO as its members, in order to organize and coordinate the work in national IP strategy formulation. On June 30, 2005, Premier Wu Yi, the chairman of the Working Group, held the first meeting. All the group members and heads from various ministries and commissions were present at the meeting. Documents were discussed and Premier Wu Yi made an important speech. The Chinese National IP Strategy is being formulated on full-scale and has entered substantive phase. We wish it be concluded by year's end.　[2006-02-15 11:52:22]
[Anchorwoman] The commercialization of patented technology is one of the concerns of inventors. As a competent authority, what has SIPO done to facilitate the implementation of patented technology?　[2006-02-15 11:56:25]
[Tian Lipu] In recent years, SIPO has initiated a series of measures to facilitate the implementation and industrialization of patents, including the national Model Projects of Patent Industrialization, the pilot work of the National Patent Industrialization Project, the promotion of patent mortgage, the organization of national patent exhibits, the exploration of the possibility of the establishment of the national patent exhibits and a trade platform, and the optimization of the patent trading environment.　[2006-02-15 11:59:27]
[Anchorwoman] As the phenomena of intellectual property disputes including counterfeiting and passing off patents still exist in China, some people criticized the country for not taking effective measures to protect intellectual property rights. What is your comment on this criticism?　[2006-02-15 12:09:44]
[Tian Lipu] Disputes over intellectual property rights (IPR) as well as counterfeiting and passing off acts as such are objective phenomena arising from activities of economic competition. And these phenomena also exist around the globe. Many countries are confronted with such intellectual property disputes and counterfeiting problems of different severity. The key lies in how to deal with various types of IPR disputes impartially according to laws and how to effectively restrict and fight against counterfeiting and passing off.　[2006-02-15 12:10:22]
[Tian Lipu] At present, such IPR disputes handled by authorities and courts in some regions of China show a tendency toward increase. It shows, on the one hand, that intellectual property disputes do increase in some areas, while on the other, administrative authorities and judicial departments are intensifying their measures, efforts and force to perform their law enforcement functions. One also should see that the number of these disputes and the rate of the increase are relatively limited compared to the total number and the growth rate of intellectual property rights in China.　[2006-02-15 12:10:51]
[Tian Lipu] The Chinese Government has always attached importance to protection of intellectual property rights and has made unremitting efforts in this regard. China has not only established a complete intellectual property legal regime and a law enforcement framework that are in conformity with international practice, but also an effective IPR protection mechanism, which is characterized by "double protection together with parallel operation", making available both administrative and judicial protection to the right holders. This protection mechanism has played a significant role in handling IPR infringement and disputes and in fighting against illegal IPR offending and crimes. Furthermore, in order to enhance IPR protection, the State Council launched, starting from 2004, a special nation-wide IPR protection campaign. In December 2004, the Supreme People's Court and the Supreme People's Procuratorate promulgated, according to the provisions of the Criminal Law, the Interpretation on Various Issues Concerning Applicable Laws to Handling Intellectual Property Crime Cases.　[2006-02-15 12:14:06]
[Anchorwoman] There is a saying that China is the "world's factory". What is your comment on this? What is the important role that IP protection will play in promoting the independent innovation of China?　[2006-02-15 12:16:12]
[Tian Lipu] Significant progress has been achieved in attracting investment in the past years, with the amount of foreign investments taking a leading position among all countries, which contributes greatly to China's economic development. However, this kind of development is based on cheap labor, consumption of resources and pollution of the environment, and will not last long. Therefore, a sustainable development is the only choice for China to shift from "made in China" to "invented in China", so as to get rid the name of "world's factory". Special attention should be paid to knowledge-intensive industries, in the process of attracting foreign investment; and at the same time, step up the intellectual property protection in China, making the world intellectual property resources converge in China.　[2006-02-15 12:18:32]
[Tian Lipu] Considering the current global competition trend and the demand of domestic development, the Central Government has made a strategic decision that enhancing the capacity of independent innovation and invention will remain as the strategic basis for the development of science and technology, as well as a core element in adjusting the industrial structure, changing the growth mode, and increasing the national competitiveness.　[2006-02-15 12:19:04]
[Tian Lipu] This can also be interpreted as: a perennial and sustainable development should be based on the enhancement of capacity of independent innovation and invention and the resolution of deep-seated inconsistencies and problems accumulated in the national economic development, inter alia, the unreasonable industrial structure, the mode of extensive economic growth and the low level of technology development in industries.　[2006-02-15 12:19:40]
[Tian Lipu] Intellectual property is not only a base and index of independent innovation, but also an important instrument of market competition. As a crucial base or resource, intellective innovation will eventually be reflected by a certain product or manufacturing technology, even the innovation in system or management will not be an exception. Innovation starts from the intangible, as an inventive idea in the mind of the inventor, so is knowledge as the result of the innovative intellectual activities of human beings.　[2006-02-15 12:20:07]
[Anchorwoman] Would you please list the National Intellectual Property Pilot Cities and Model Cities? And what have these cities achieved?　[2006-02-15 12:23:21]
[Tian Lipu] In accordance with the Guiding Decision on the Establishment of IP Pilot and Model Cities, SIPO supervised and promoted the establishment of IP pilot and model cities. In 2005, 6 National Model Cities were added. By the end of 2005, 9 cities had been approved as the IP model cities, that is, Guangzhou, Wuhan, Changchun, Chengdu, Jinan, Changsha, Xiangtan, Yichang and Luoyang; 12 cities had been added as IP pilot cities, bringing the total number of pilot cities to 49.　[2006-02-15 12:24:12]
[Tian Lipu] The establishment of IP pilot and model cities promotes the intellectual property system construction, enabling the local governments to pay closer attention to intellectual property. Mayors or vice mayors in charge of IPR of various cities headed the Leading Group on the Establishment of IP Pilot and Model Cities; intellectual property has been listed into the priorities of local governments; to make a city a pilot or model city has been set as the goal of the IP Pilot and Model Plan of a city, various agencies at the local levels were required to give full support to it; intellectual property protection has been strengthened; the influence of pilot and model cities has been increased; and last but not the least important, the role that the intellectual property system plays in facilitating the independent innovation and economic and social development of the city has been enhanced.　[2006-02-15 12:24:55]
[Anchorwoman] The current situation or the demand of a full-implementation of scientific development philosophy has put intellectual property in a more important position. What is the future plan for intellectual property protection in China?　[2006-02-15 12:26:05]
[Tian Lipu] In order to better serve the independent innovation and the establishment of an innovation-oriented state, we have to further strengthen IP protection. With regard to that, we are currently taking the following measures: Ⅰ. Enhancing the realization of the importance of intellectual property in the new era, designating IP strategy as one of the important development strategies of the country to meet the need for the establishment of an innovation-oriented country. The drafting of the national IP strategy started this year for an IP strategy which accommodates the real condition of China, and will serve our goal for an innovation-oriented country.　[2006-02-15 12:26:48]
[Tian Lipu] Ⅱ. Further strengthening the guidance and constitutional construction of the governments at various levels, fostering a positive policy environment and an effective encouragement mechanism to protect and arouse the enthusiasm of the inventors and researchers, so as to encourage them to invent and innovate. The creation of intellectual property and knowledge was done by human beings, and implemented by human beings. Therefore, capable people are the most fundamental element.　[2006-02-15 12:28:39]
[Tian Lipu] Ⅲ. Helping enterprises to develop and implement innovative technologies with the independent intellectual property right. As a principal part of the market economy, enterprises are also the principal part of independent innovation and the creation of the independent intellectual property right. The goal set by the eleventh Five Year Plan also required enterprises to create the independent intellectual property right, establish their own brands and obtain high global competitiveness. Enterprises are the key element of intellectual property.　[2006-02-15 12:29:22]
[Tian Lipu] Ⅳ. Strengthening intellectual property protection, improving the intellectual property system, and enhancing intellectual property enforcement. Intellectual property protection is the most crucial link in the operation of the whole intellectual property system. It is very important to respect others' intellectual property right, and protect your own one. It should be understood that the motivity and demand of intellectual property protection are rooting in the national development of China.　[2006-02-15 12:29:48]
[Tian Lipu] Ⅴ. Intensifying the training of intellectual property professionals, and increasing the public awareness of intellectual property. The protection of intellectual property relies on the enhancement of public awareness of intellectual property. The innovativeness of the general public should be inspired and their capacity of innovative thinking should be enhanced. The belief of independent innovation should be upheld, and awareness of intellectual property fostered. We should be confident that in the new century, the resplendence of the Chinese culture will recur, and the reinvigoration of the nation will be achieved.　[2006-02-15 12:30:26]
[Anchorwoman]Would you please brief us on the achievements that intellectual property offices at different levels have made in the special action on IPR protection?　[2006-02-15 12:31:02]
[Tian Lipu] In the special action on IPR protection from September 2004 to December 2005, SIPO and relevant authorities launched a series of actions, including special actions targeted at patent infringements in the field of foodstuff and pharmacy, patent enforcement actions, enforcement inspections in large wholesale markets, special actions on the IP protection in exhibits, and enforcement action against patent frauds.　[2006-02-15 12:32:03]
[Tian Lipu] In accordance with the deployment of SIPO, local IP offices also initiated effective patent enforcement actions. During that period, local IP offices at various levels handled 3,923 patent imitations, 515 cases of patent counterfeiting, 3,078 patent infringements, and 358 patent conflicts. A total of 47,971 people were dispatched, 20,911 commercial premises and 11,000,480 commodities were inspected. Twenty-seven cases were transferred to the public security authorities, 37 were transferred to other authorities, and enforcement action was taken in cooperation with other authorities.　[2006-02-15 12:32:58]
[Anchorwoman]The interview is over. Thank you all! See you next time. You are welcome to point out mistakes in the translated version.　[2006-02-15 12:35:11]