IPR pol­icy to cre­ate bal­anced sys­tem

China Daily (Canada) - - FRONT PAGE - By LI XIANG lix­i­ang@chi­nadaily.com.cn

The na­tion’s in­tel­lec­tual prop­erty pol­icy is in­tended to en­sure mar­ket fair­ness, and it is not biased against for­eign com­pa­nies, a se­nior IP of­fi­cial said.

He Zhimin, deputy com­mis­sioner of the State In­tel­lec­tual Prop­erty Of­fice, said that China op­poses the abuse of IP rights and will clamp down on com­pa­nies that use their IP ad­van­tages to gain “mo­nop­o­lis­tic and un­jus­ti­fied profit”.

He, whois also a deputy of the Na­tional Peo­ple’s Congress, made the com­ments in an in­ter­view with China Daily ahead of the open­ing of the top leg­is­la­ture’s an­nual meet­ing.

The re­marks came af­ter the Na­tional Devel­op­ment and Re­form Com­mis­sion im­posed a record fine of $975 mil­lion on the United States-based chip­maker Qual­comm Inc for abus­ing its mar­ket dom­i­nance to charge “un­fairly high” patent roy­al­ties from Chi­nese com­pa­nies.

The penalty on Qual­comm, the high­est fine levied by Chi­nese au­thor­i­ties on a for­eign com­pany, has rip­pled through for­eign tech­nol­ogy com­pa­nies, sig­nal­ing pos­si­ble tougher reg­u­la­tion in the Chi­nese mar­ket.

He said that the na­tion’s IP right-re­lated stan­dards are in line with in­ter­na­tional prac­tice and all com­pa­nies, both do­mes­tic and for­eign, are treated the same with­out any bias.

The pur­pose is to build a bal­anced and in­clu­sive IP sys­tem that takes into ac­count the in­ter­ests of dif­fer­ent par­ties and the dis­par­i­ties be­tween China and de­vel­oped coun­tries, he said.

He said that the SIPO will as­sist Chi­nese com­pa­nies to de­fend their in­ter­ests in for­eign mar­kets where they are fac­ing a grow­ing num­ber of law­suits over IP dis­putes.

“Some for­eign mar­kets tend to use the IP rules to con­tain Chi­nese en­ter­prises,” He said, not­ing that some dis­putes are also due to com­pa­nies’ lack of knowl­edge about the IP law and prac­tice in for­eign mar­kets.

China has seen the largest num­ber of US in­ves­ti­ga­tions in­volv­ing al­leged patent and trade­mark in­fringe­ment over the past 10 years.

The coun­try will carry out a com­pre­hen­sive over­haul of the Patent Law to bet­ter reg­u­late and pro­tect IP rights as Bei­jing has be­come in­creas­ingly se­ri­ous about IP is­sues in re­cent years.

An­a­lysts said that bet­ter reg­u­la­tion and pro­tec­tion of IP rights is es­sen­tial for China to trans­form its growth model to­ward an in­no­va­tionone.

Thea­mend­mentof the law, one of the key sub­jects to be dis­cussed at the NPC meet­ing, will in­volve bet­ter ad­min­is­tra­tive and ju­di­cial pro­tec­tion of IP rights, higher com­pen­sa­tion and tougher pun­ish­ment for in­fringe­ment, ac­cord­ing toHe.

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