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Inforgraphic

SIPO head: Setting the record straight

Updated: 2010-12-29 16:14

By Tian Lipu (China Daily)

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Ancient inventions

As is known to all, the Chinese nation is one that admires innovation and has given birth to inventions since ancient times.

The four inventions in ancient China - papermaking, gunpowder, the compass and typography - have made huge contributions to the development and progress of world civilization.

Chinese civilization, lagged behind since the Industrial Revolution, had not changed much until the end of the 1940s and in particular until its reform and opening up.

The creativity of the Chinese people has been inspired by the intellectual property system again. Particularly, in the 21st century, intellectual property has gradually become an important component of China's scientific and technological progress, cultural prosperity and economic growth.

Therefore, it is a contribution to the international community, which should be admired rather than denounced, as it promotes the intellectual property system, spreads intellectual property culture and makes 1.3 billion Chinese - more than one-fifth of the world population - aware of intellectual property.

Implementation of the intellectual property system in China has brought and continues to bring tangible benefits to Western countries and their multinational corporations.

These corporations earn hundreds of billions of dollars from China annually by directly collecting patent, trademark and copyright fees, and have additional brand benefits and technical gains by making products in China and then selling them back in their home countries. Such gains are hundreds of billions of dollars as well.

iPod example

For example, two US researchers found that for each $299 iPod Video 30G, an Apple product, Apple takes $114 for the combined value of creativeness, brand, design and patents, some 38.1 percent of the price, while Chinese assembly enterprises get only $4, or about 1.3 percent.

Another example is DVD players. A Chinese enterprise has to pay $19.70 in patent fees to produce a DVD player - 10.2 times the maker's profit of just $1.93.

In 2007 China exported 145 million DVD players, and the multinational corporations collected amazing patent fees of nearly $2.9 billion.

They also benefit from the difference in technical level as developed countries transfer low-end manufacturing to China, which in turn frees more space and resources to develop high-tech industries in their home countries.

Related readings:
SIPO head: Setting the record straight IPR cases jump as awareness increases
SIPO head: Setting the record straight Trademark awards part of push to go global
SIPO head: Setting the record straight Machinery heavyweights applauding Hangzhou IPR efforts
SIPO head: Setting the record straight China vows to boost IPR protection

In addition, China implements an intellectual property system and encourages innovation, which also creates numerous business opportunities for foreign enterprises.

For example, innovation needs different kinds of precise analytical instruments and test devices, and requires advanced production equipment and technologies that can't now be produced in China.

So Chinese enterprises have to buy them from the developed countries, which creates a vast market, bringing taxes to governments of the developed countries and creating job opportunities for workers.

If China didn't maintain an intellectual property system that functioned effectively, I can't image that foreign entrepreneurs would still be willing to make investment and have technical transfers in China on such a large scale.

Frankly speaking, as a developing country where the intellectual property system has not operated very long, China still has some problems in intellectual property protection.

China's intellectual property system has room for improvement, the public awareness of intellectual property protection is still comparatively poor, intellectual property infringement is serious in some regions, domains and products, and the abuse of intellectual property rights occurs from time to time.

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