The number of patent applications in China is not high

Abstract In order to further promote the economic and industrial upgrading, the state has proposed a supply-side reform plan to focus on improving the quality and efficiency of the supply system. The quality of products depends to a large extent on the level of product development and innovation, and is reflected in factors such as brand awareness, so the supply side structure is changed...
In order to further promote the economic and industrial upgrading, the state has proposed a supply-side reform plan to focus on improving the quality and efficiency of the supply system. The quality of products depends to a large extent on the level of product development and innovation, and is reflected in factors such as brand awareness. Therefore, the overall improvement of product quality and the intellectual property system to be realized in the supply-side structural reform are closely related. However, the "Blue Book of the Rule of Law (2017)" released by the Chinese Academy of Social Sciences recently revealed that the current supply of Chinese products is not high enough and the degree of innovation is insufficient. China's intellectual property rights still have problems such as low quality, insufficient protection and high protection costs, which seriously restricts the innovation of enterprises and the improvement of product quality. Therefore, it is necessary to further improve the intellectual property system and promote the realization of the supply-side reform objectives.

Only 5.1% of companies with R&D investment of more than 5 million
According to the blueprint of the rule of law, through the survey of the average investment in research and development projects of more than 7,000 enterprises, it is found that the majority of enterprises (67%) invested less than 1 million yuan in research and development, and only 4.1% invested more than 5 million yuan. The survey of the company's patent R&D cycle found that the company's R&D cycle accounted for 23.2% in 1 year and below, 44.1% in 1 year to 2 years, accounting for 67.3% in total; and 6.2 in real long-term R&D in 3 years or more. %. This shows that most companies are reluctant to spend too long a period of research and development activities.
The Blue Book pointed out that technological innovation determines the core competitiveness of enterprises. Although technological innovation requires capital investment, it will also generate huge returns. Enterprises are reluctant to invest more funds in the field of technological innovation, which requires reflection and improvement. At the same time, the technological innovation capability of a country or enterprise determines the supply capacity of the product to a certain extent. China's ongoing supply-side structural reform is precisely to find ways to further enhance the core technological capabilities of Chinese enterprise products and improve them in an all-round way. Its brand credibility. Therefore, further improving the intellectual property protection system and helping the supply-side reform will become an important task at the moment.

The number of patent applications is not high
The number of invention patent applications in China has been growing steadily. According to the data released by the State Intellectual Property Office in 2015, the Chinese Intellectual Property Office accepted a total of 1.102 million invention patent applications in 2015, a year-on-year increase of 18.7%, ranking first in the world for five consecutive years. If we only look at the number of patent applications, the innovation ability of Chinese companies seems to be the "world's first". However, from the perspective of the quality of patent applications, this is not the case, whether it is in daily consumer goods or high-tech products. There are still some gaps in the innovation and supply capabilities of Chinese companies compared with their international counterparts. The ability of Chinese companies to innovate is not directly proportional to the number of patent applications that continue to grow.
However, the Blue Book of Law reveals that a large number of patents filed by companies are not really used to improve product quality. According to the provisions of the Chinese Patent Law, the term of protection for Chinese invention patents is 20 years, and the period of protection for utility models and design patents is 10 years. However, in most cases, the patentee will waive the patent midway. The 2014 Annual Report on Effective Patents in China shows that the average duration of domestic invention patents is 3.8 years, the utility model patents are 3.5 years, and the design patents are 3.2 years; the inventions that actually reach the longest maintenance period account for only 0.02%, utility models Only 1.1%, the design only accounts for 0.5%. The above data shows that the vast majority of patent applications in China are not actually put into use.
In addition, the patent license implementation rate can also reflect the actual use of patents. From 2012 to 2014, the country granted a total of 2,787,707 domestic patents, and only 56,671 patent licensing contracts were signed, accounting for only 2% of the authorized patents. The data also reflects that most of the patents are not actually put into use.
Therefore, the company must not directly draw the equal sign between the patent application and the product supply capability of the enterprise. In fact, the important indicator for evaluating the government or enterprise's ability to innovate in science and technology in the existing system is still the amount of patents. For example, enterprises need to enjoy patents for many preferential welfare policies; enterprises need to have taxation requirements for applying for high-tech enterprise certification; The introduction of talents and the evaluation of talents in local and unit also require patents. Obviously, applying for a patent can satisfy a variety of interests. In addition, in many places, in order to strive for the number of patent applications, the so-called incentive measures for companies to apply for patents to issue bonuses, even more lead to the proliferation of patent applications.

Seven adults believe that the level of intellectual property protection needs to be strengthened
According to the blue book of the rule of law, 8938 people were investigated with the title of “Evaluation of China's Intellectual Property Protection Level”. In general, 67% of respondents believe that the level of intellectual property protection in China needs to be gradually strengthened, and even 24.4% of them are Investigators believe that it needs to be greatly strengthened, and only 7.2% of respondents think it is appropriate. It is not difficult to see from the survey results that the level of intellectual property protection in China needs to be further improved.
In fact, what choices companies make – whether they are committed to innovation or imitation and plagiarism – depends to a large extent on the analysis of costs and benefits.
For a long time, the level of intellectual property protection in China has been too low, which has caused many companies to be reluctant to innovate in the process of product supply, and more willing to imitate and copy. In the lawsuit for damages in patent infringement cases, 97.25% of the cases were subject to the “legal compensation” standard, and the average compensation amount was only 79,600 yuan. In contrast, the average amount of patent litigation compensation in the United States during 2007-2012 was as high as 29.4 million yuan. In trademark infringement cases, the average amount of court awards is 62,000 yuan, which is not in direct proportion to the long-term efforts of trademark operators to maintain the brand. The low compensation for intellectual property infringement cases has contributed to the formation of this situation: innovators need to spend a lot of money and effort to make a difference in the pursuit of product quality, and infringers can “plagiarize” use at a lower cost. Therefore, the imitation of the supply of various products in China is heavier, the innovation ability is insufficient, and the number of intellectual property disputes remains high.

It is recommended to introduce a comprehensive punitive damages system.
Supply-side reform is inseparable from intellectual property rights, and the improvement of the intellectual property system can achieve real-world supply-side reforms. Based on the above-mentioned problems existing in the above-mentioned intellectual property system, the Blue Book proposes to improve the intellectual property evaluation system and realize the shift from heavy quantity to heavy quality on the supply side. In the process of adjusting the patent quality evaluation system, the original patent quantified index should be adjusted to the actual contribution value of the patent to improve product supply. Whether it involves the identification of high-tech enterprises, or the tax reduction of high-tech enterprises, or the reduction of patent application fees, and the related incentives for enterprise invention and creation, it is necessary to cancel the original provisions on patent quantification, and whether the patents are actually used. The use effect and the actual contribution value to the product supply are used as evaluation indicators. In a series of supporting documents that need to be submitted by enterprises, in addition to the patent certificate, it is necessary to submit the documents that the patents play a practical role in the supply of products.
The Blue Book also recommends increasing the cost of intellectual property infringement and realizing the supply-side transition from imitation to innovation. Although the patent law was revised in 2008 to increase the statutory compensation limit from 500,000 yuan to 1 million yuan, the existing compensation system still does not have enough deterrent power for intellectual property infringement, and it is difficult to effectively protect innovation. Therefore, it is necessary to fully introduce the “punitive compensation system” in the intellectual property law.
At the same time, reduce the cost of intellectual property protection and provide legal protection for continuous innovation on the supply side. In order to give patent applicants clear expectations and reduce the costs and risks associated with uncertainties, it is necessary for the patent law to clearly define the patent application cycle. Compared with other types, invention patents are the most complicated because of the substantive examination. It is necessary for the patent law to clearly define the time limit for applying for substantive examination and the time limit for reviewing the results. If the materials submitted for correction are involved, it is also necessary to regulate the time for correction. At the same time, the deadline for reviewing the results of utility models and design patents is clearly defined. In this way, enterprises will have relatively clear expectations and assessments of future risks in the process of technological upgrading and transformation, minimizing the costs and risks brought by intellectual property applications.

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