On September 22, 2021, the State Council issued the Guidelines for Building a Powerful Country with Intellectual Property Rights (2021-2035)(hereinafter referred to as “the Guidelines”), which states that intellectual property is a national strategic resource and key element for international competitiveness. The article briefly summarize the key points of the Guideline and also provides a basic insight:

Background:

A general trend in China on Intellectual Property Rights (IPR):

1. On September 20, 2021, the World Intellectual Property Organization released the Global Innovation Index 2021. China placed 12th in WIPO’s index, rising two spots compared with 2020.

2. The social satisfaction index has increased from 63.69 in 2012 to 80.05 points in 2020. (data released by China National Intellectual Property Administration)

3. By the end of 2020, Mainland China managed to achieve 15.8 patents per annum for each 10, 000 head of population, and 30.17 million cases of valid trademark registrations in total. The numbers are more than 4 times of that in 2012.

Current Status and Facts:

1. General goals listed in the Guidelines include:

    a) enhance key national competitiveness.

    b) further opening-up to the world;

    c) establishing a full cycle of intellectual property covering the creation, use, protection and management ( of accelerating legislation, etc.);

    d) promote international cooperation on IPR

2. The Guidelines articulate the development plan in two periods:

    a) stricter IPR protection, a high level of public satisfaction, and greater market value of IPR by 2025;

    b) China's IPR competitiveness will rank among the top in the world, and will become intensely involved in global intellectual property governance by 2035

3. Focused sectors/industries mentioned in the Guidelines: algorithm, big data, artificial intelligence (AI), genetic technology, traditional culture heritage, Chinese medicine, and intangible cultural heritage etc.     

Next Steps Suggestions:

1. Big growing potential: by 2025, the added value of patent-intensive industries is expected to be equivalent to 13 percent of China's GDP, and that of the copyright industry for 7.5 percent.

2. A better IPR environment: MNCs and foreign enterprises whose business and revenue involves IPR shall benefit.

3. Possible business opportunities within the focused sectors mentioned in the Guidelines. Foreign high-tech and ICT enterprises are advised to keep tracking any updates on the document.

4. Revision plan for existing relevant laws and formulating plans for new regulations are likely to be announced as a follow-up action.

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