Press Interpreter

02/16/06 -- State Intellectual Property Office head Tian Lipu was a guest in the Chinese government's intellectual property online chatroom

State Intellectual Property Office director Tian Lipu was a guest on the 15th of the Chinese government website, engaging in an online discussion on how to promote the use of intellectual property rights and advance self-reliance in innovation as well as answering questions from netizens.

A Passive Mode of Development

A net friend wrote: "there are some who say that my country is the 'world's factory.' What should I think of this remark?"

Tian Lipu replied that this phrase reflects objective reality. The earliest phrase was "world's factory," but some thought that "world's factory" was not precise enough, that one ought to say "world's processor." This meant that we lack our own research capacity, the ability to rely on ourselves for innovation, and rather just have the status of laborers responsible for processing materials.

"This is an objective reality as well as a necessary stage," said Tian Lipu. "But we must not remain in the position of 'world's processor' forever."

Tian Lipu wrote that the so-called current status of "world's processor" has brought with it a series of problems, such as pressure on natural resources, energy depletion, environmental polution, etc. Because the labor force is underpriced, the competitiveness of products is very high, resulting in trade friction with the rest of the world. "After expending effort and depleting great amounts of natural resources we have not obtained much wealth. As a result people have criticized us, including on intellectual property matters. Their criticism is that, in short, we have followed a mode of development that is too passive."

"To solve this problem we need to follow the spirit of the center by making increasing the capacity for domestic innovation an important foundation for all of social and economic development. Our industrial structure and method of growth must be adjusted," said Tian Lipu.

Tian Lipu indicated that at the same time as the protection of intellectual property rights is increased, it is even more important to promote the capacity to self-innovate and to create intellectual property. This is the problem that must be resolved in order to meet China's long-term developmental needs.

"In this new era, intellectual property is the foundation and bellweather of self-innovation. It is also an important way of competing in the market." Tian Lipu emphasized that China must gradually move from being the "world's processor" to the "world's factory," from manufacturing to innovation. China must occupy a higher place in the market.

Intellectual Property Rights Are Too Few

"At present, the amount of intellectual property owned by my country, especially in core and essential technologies, tends to be too little and the quality too poor. Moreover, there is a shortage of name brands, especially international name brands," Tian Lipu acknoledged frankly in replying to netizens' questions.

On the issue of the overall conditions for successful development, he indicated that the current level of development of intellectual property is in fact in conformity with our country's current stage of development, the primary stage of socialist development. However, this cannot leave us satisfied. The overall state of our country's intellectual property work is not adapted to the international economic, technological, scientific, or social requirements for development. Moreover, it faces the problem of not conforming to newly emerging international conditions for development.

Tian Lipu said that the "unadapted" character of our intellectual property is expressed in five areas: (1) intellectual property work policies are not yet up to par, laws and regulations are not complete enough; (2) the level of management and efficiency of the government department overseeing intellectual property work is awaiting improvement; (3) the level of understanding and application of the intellectual property system is not high, there is a shortage of intellectual property dispute resolution, especially a shortage of specialists in international disputes; (4) the amount and quality of intellectual property is low; and (5) awareness of intellectual property rights in society at large and especially among the vast majorty of the public remains to be moved a step forward.

Increase in Patent Applications Reaches a New High

Tian Lipu mentioned that in 2005 the National Bureau of Intellectual Property received and processed 476,264 patent applications, an increase of 34.6% compared with last year.

"This is the highest rate of increase of the last 20 years." Tian Lipu explained that of the three kinds of patent applications accepted, there were more than 170,000 invention patent applications, there were 139,566 new use applications, and there were 163,371 design patents, all representing comparatively large increases.

Tian Lipu said, "It is heartening that the increase in innovation patents remains at a high rate. Innovation patents have high technical content and have to pass strict standards. Results for this kind of intellectual property were outstanding last year."

According to the statistics, there were 93,485 domestic invention patent applications in 2005, a 42.1% increase. Guangdong was the province with the largest number of patent applications.

Tian Lipu said that 67% of domestic invention patent applications came from businesses, research institutes and places of higher education. Business has become the main force for the three kinds of patents.

According to the statistics, in 2005 the State Intellectual Property Office altogether awarded 214,003 patents. The three types of patents, invention, new use, and design, constituted 25%, 37%, and 38% of all authorised patents respectively.

An Intellectual Property Strategy is Being Drawn Up

Tian Lipu explained that along with progress in science and technology, the rise of the knowledge economy, and the acceleration of the process of economic globalization, the importance of intellectual property appears to be increasing day by day in the world environment. Intellectual property has already become an important method of development for many countries, and the creation and full use of intellectual property has already become the inevitable choice for increasing national power and stimulating the coordinated rapid development of the economy and society.

"Drafting the nation's intellectual property strategy is an objective necessity for our country's open door policy and economic and social development. It is a vigorous answer to the challenge of the transformation of international intellectual property rules. It has the urgent mission of defending our country's national interest and economic security. It will help accelerate the establishment of a market environment of fair competition, and it will increase our country's core competitiveness and its capacity to innovate on its own," said Tian Lipu.

"At present, the drafting of the national intellectual property strategy has already entirely commenced and has entered the research stage. We hope to complete the work before the end of the year," said Tian Lipu.

(According to report from Xinhua News Agency filed February 15)

Businesses Principally Responsible for Transformation of Patent Implementation

Tian Lipu acknowledged frankly that "during the past 20 years, the transformation and industrialization of our country's patents hovered at a relatively low level." He indicated that patent transformation and implementation are in fact innovative processes, in which the principal part ought to be played by business.

According to our understanding, over the past few years the State Intellectual Property Office has started national patent technology industrialization demonstration projects, trials of national patent industrialization processes, promoted patent-backed financings, hosted and energetically supported the organization of national patent technology conventions, worked with local governments to establish a platform for national patent technology displays and exhibitions, lead many regions in forming policies and adopting measures, optimized the patent market environment, adopted every kind of method, brought together patent market supply and demand, and extended and promoted the transformation and implementation of patent technology.

"I am here calling for our enterprises to have a longer-term vision and to engage in more profound reflection. Proprietary research is one route to innovation. But buying and bringing over the good and advanced technology of others and then through one's own innovative processes creating marketable products is also a kind of innovation." Tian Lipu added that "businesses should put even more time and effort into this kind of innovation."

[Full Article]

By Xinhua News Agency Reporter Tian Yu

--Translation By Ramsi Woodcock and Carol Fang

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