Sunday 7 February 2010

Beijing security check needed for inventors seeking patents abroad

Chinese inventors hoping to seek patents abroad must go through a state security examination as Beijing tries to prevent the leak of sensitive technology, while streamlining the application process to encourage Chinese companies to take innovations abroad.

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Guanyu said...

Beijing security check needed for inventors seeking patents abroad

Ng Tze-wei
04 February 2010

Chinese inventors hoping to seek patents abroad must go through a state security examination as Beijing tries to prevent the leak of sensitive technology, while streamlining the application process to encourage Chinese companies to take innovations abroad.

This measure is one of a number of new amendments introduced to the Implementing Guidelines of the Patent Law, which took effect on Monday. The Patent Law, passed in 1984, was also overhauled in late 2008.

Officials said this new measure is meant to simplify the procedure for Chinese companies to apply for foreign patents, since under the old rules they were required to first apply for a Chinese patent for their inventions. The problem was that the processing of the Chinese application takes an average of 25.8 months.

Now they can directly apply for foreign patents after a security examination to see if the invention contains information that involves a “defence interest” or “state security or major state interest”. And under the new rules, the patent authorities must notify applicants whether they need a security clearance within four months, and must give them the results of that clearance application within six months.

Patents law professor Cao Xinming of Zhongnan University of Economics and Law said “state security or major state interest” was stipulated for the first time, and it was in line with international practice.

But Shi Yusheng, head of intellectual property for the King and Wood law firm, said formal incorporation of the security clearance procedure might make it more convenient for authorities to say no in cases of doubt. “The vague definition of what is considered security information and what is not adds uncertainty to the patent application,” he said.

Other changes include raising the requirements for the level of innovation in patent applications, stepping up penalties against patent rights infringement, and lowering or cancelling fees for patent applications.

New rules in the pharmaceutical field also require the disclosure of genetic resources in inventions and add new types of compulsory licences. The number of patent applications by Chinese inventors has been on a steep rise in the past decade. According to official statistics, patent applications grew 18 per cent to nearly 1 million last year alone, of which 30 per cent are for inventions rather than utility models and designs. The number of applications from Chinese inventors also set a record and accounted for 73 per cent of all invention applications in China.

Also last year, the number of patent applications from Chinese inventors exceeded the number from foreigners. Overall, Chinese applications make up 85.8 per cent of the 3 million that have been granted.

Chinese firms are also applying for more foreign patents: in 2008, more than 6,000 foreign patent applications were filed, an 11 per cent jump from the year before.