More foreign innovators are willing to invest in China as the business environment for intellectual property and the protection of IP rights in the country continue to improve. In the first half of the year, foreign entities submitted 94,000 trademark registration applications in China, marking a year-on-year increase of 7.4%, according the China National Intellectual Property Administration (CNPA). The number of applications from Germany, Italy and the United States has recorded a significant increase of more than 20% year-on-year. “The figures indicate that China has cultivated a favorable business environment for foreign companies to invest and increase their presence in the country, by extending equal protection of IP rights to market players from both home and abroad,” said Shen Changyu, CNPA Director.
Deputy Director Hu Wenhui emphasized the importance of IP protection in shaping a sound business environment, saying that more efforts are being directed toward improving the legal framework to create a predictable innovation environment for foreign businesses. “We’ve joined nearly all major international IP treaties and promoted the improvement of domestic IP laws and regulations,” he said. The Administration has helped amend the Patent Law, establishing the most stringent punitive compensation system in the world, and is participating in the revision of the Trademark Law as well as regulations on the protection of integrated circuit design, Hu said. “Throughout these legislative processes, we’ve extensively solicited opinions and suggestions from foreign-funded enterprises and foreign chambers of commerce,” he added.
The CNPA has set up 128 national-level IP service centers, prompting over 8,000 foreign-funded and joint venture companies to register, ensuring that they can enjoy professional and preferential policies equal to those provided for domestic enterprises. “In addition, we’ve conducted seminars, visits and research to increase exchanges with foreign innovators, in order to help them resolve IP-related difficulties in business operation,” Deputy Director Hu said. Chinese IP departments have also strengthened the monitoring of IP risks for domestic companies going global, offering them guidance in handling IP affairs overseas, recovering economic losses amounting to CNY38.04 billion, the China Daily reports.
