China Releases Circular on Cultivating Intellectual Property Rights Utilization

China’s Ministry of Industry and Information Technology (MIIT) released the “Circular of the Ministry of Industry and Information Technology on Carrying out the Program of Cultivating the Intellectual Property Rights Utilization Capability of Industrial Enterprises (gongxinkebu [2012] No.391, hereinafter referred to as ‘Circular’) on August 27.

According to the Circular, programs to cultivate the utilization capability of intellectual property rights for industrial enterprises (hereinafter referred to as the ‘Cultivation Program’) will be launched from 2012. The Circular defines the utilization capacity of intellectual property rights for industrial enterprises as the capacity of industrial enterprises in:

1. Obtaining different kinds of intellectual property rights (i.e., patents, trademarks, copyrights, business secrets, exclusive rights of integrated circuits layout designs) during their production and operation activities or technical innovation activities; and
2. Making reasonable use of intellectual property rights to participate in market competition, thereby realizing the value of the enterprises.

Main Tasks

As provided by the Circular, there are six main tasks for the Cultivation Program by 2015, which are:

1. Cultivating a group of benchmark enterprises in terms of intellectual property rights utilization

By 2015, each province and municipality shall cultivate at least five benchmark enterprises in terms of intellectual property right utilization, to set up a model in motivating technological innovation and operation through intellectual property rights utilization. 

2. Establishing a management system of intellectual property rights for industrial enterprises

By 2015, industrial enterprises with intellectual property rights management systems in each province and municipality shall reach a certain proportion. At least 60 percent of the pilot enterprises in each province and municipality shall establish a management system of intellectual property rights, arrange staff and develop strategies or systems for intellectual property rights, or reflect the contents of intellectual property rights in their strategic planning and management system.

3. Improving the capacity of industrial enterprises in obtaining and utilizing intellectual property rights

By 2015, the quantity of intellectual property obtained by pilot enterprises in each province and municipality shall achieve an average annual growth of 15 percent.

4. Establishing a working system to promote intellectual property rights

The Department of Industry and Information Technology at the provincial or municipal level shall support the development of the Cultivation Program by providing accreditation procedures, project sponsorship and rewards.

5. Creating a good atmosphere for intellectual property in the field of industry and information technology

The Department of Industry and Information Technology at the provincial or municipal level shall organize more than three promotional campaigns for the Cultivation Program and offer no less than four training sessions regarding the intellectual property theory and practice to the managing personnel of industrial enterprises.

6. Evaluating intellectual property rights for industrial enterprises

By 2015, at least an average of 60 percent of the pilot enterprises shall meet the stipulated standards in the annual intellectual property rights evaluation.

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