In the past year, China has made significant strides in reforming its patent system, enhancing its appeal as a center for innovation and increasing the value of Chinese patents. As of January 2024, new Patent Law Implementation Rules and Patent Examination Guidelines have been implemented, reflecting these advancements. Below is a summary of the most important changes.
New Implementing Regulations of China Patent Law
The revised Chinese Patent Law, effective June 1, 2021, has been further supported by the official implementation of the Patent Law Implementation Rules as of January 20, 2024. Key revisions focus on several areas:
1. Enhancing the Patent Application System
The updated regulations aim to simplify the patent application process for applicants and innovative entities. Improvements include enhancements to e-filing regulations, clearer requirements for partial design patents, and adjustments to the grace period for maintaining novelty. Notable changes include:
Deadline Calculation for E-Filing: Official communications sent electronically will be considered received on the date they enter the recognized electronic system.
Partial Designs: Applications for partial designs must include a complete view of the product, clearly indicating the protected and disclaimed parts.
Grace Period Conditions: An invention will retain its novelty if publicly disclosed at an approved academic or technical meeting within six months prior to the application date.
2. Improving Patent Examination Quality
The revisions also aim to enhance the quality of patent examinations by regulating abnormal applications and refining the review systems for utility models and designs. Key changes include:
Good Faith Principle: This principle can now be used as a basis for rejecting applications that do not originate from genuine innovation.
Deferred Examination: Applicants can request deferred examination for varying periods based on the type of application.
3. Strengthening Administrative Protection of Patents
The reforms also focus on enhancing administrative protections for patents, including refining the patent term compensation system and clarifying standards for patent infringement disputes.
4. Enhancing Patent Public Services
The new regulations aim to improve public services related to patents and facilitate the transformation and application of patents, including addressing significant patent infringement disputes.
5. Aligning with the Hague Agreement
A new chapter has been added to strengthen the connection with the Hague Agreement, clarifying procedures for international design applications.
New Patent Examination Guidelines
To align with the revised Patent Law and its implementing rules, the Patent Examination Guidelines have undergone comprehensive revisions. Key aspects include:
Modifications related to electronic applications and requirements for partial design patents.
Optimized examination rules to enhance clarity and efficiency.
Adaptations to accommodate new business models and technological advancements.
Patent Application Trends in China
China's patent system includes three types of patents: invention patents (20-year term), utility models (10-year term), and design patents (15-year term for applications filed after June 1, 2021). Despite global economic challenges during the COVID-19 pandemic, patent filings in China have continued to rise, with the CNIPA reporting stable increases in granted invention patents from both domestic and foreign applicants.
Annual Report of the IP Court of the Supreme People's Court of China
The IP Court of the Supreme People's Court has been instrumental in establishing a specialized patent trial system in China. In 2023, there was a notable increase in patent civil cases accepted, along with a significant rise in punitive damages awarded. The court emphasizes equal protection for both Chinese and foreign parties, fostering a fair and competitive business environment.
These reforms and developments reflect China's commitment to enhancing its patent system, promoting innovation, and ensuring robust protection for intellectual property rights. In a recent infringement case involving a 'sports mechanism,' Chinese courts demonstrated a strong commitment to intellectual property protection by awarding punitive damages exceeding 12 million yuan to foreign rights holders. This decision underscores the courts' dedication to safeguarding the interests of both Chinese and foreign entities.
The updated patent law has increased the maximum statutory compensation from 1 million yuan to 5 million yuan. The Intellectual Property Court of the Supreme People's Court (SPC) is dedicated to increasing overall compensation for infringement cases, rigorously enforcing the punitive damages system, and imposing strict penalties for malicious infringement activities. From 2021 to 2023, the average compensation awarded in second-instance invention patent infringement cases handled by the IP Court reached 2.727 million yuan.
In a notable case involving the infringement of an invention patent related to 'melamine' and technical secrets, the initial judgment was set at 218 million yuan. However, the parties involved reached a comprehensive settlement during the execution proceedings, resulting in the rights holder receiving an impressive 658 million yuan in compensation. This amount has set a new record for the highest compensation awarded for intellectual property rights protection in China.