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• Date:2022-11-15

(Summary description)　　The purpose of the proposal is to “crackdown on illegal and untrustworthy acts” committed by Chinese patent agencies and to advance the strong growth of Chinese intellectual property. The most recent changes solely impact Chinese patent agencies; trademark agencies are not affected. 　　A, B, C, and D are the four grades that make up the rating system in the draft. If organizations are proven to be working as agents to submit “fraudulent patent applications,” whether locally or internationally, deductions are given. 　　The phrasing in the proposal makes it clear that the CNIPA aims to minimize exposure to the unfavorable international press, even if it is only intended for Chinese patent agencies. Under the proposed regulations, a “major worldwide adverse effect” occurrence would result in a maximum point reduction from the responsible agency. Furthermore, stronger penalties than those for domestic offenses would be applied to cases of fraudulent patent applications made abroad. 　　China has been the world leader in patent filings since 2011, and it accounted for 43.4% of all patent filings worldwide in 2018 and 2019, according to a 2020 report from the World Intellectual Property Organization. The government program that provides subsidies to people and businesses who file patents and trademarks overseas is mostly to thank for the sharp increase in patent applications from China. 　　A prominent area of research in recent years has been the rise in Chinese patent applications both locally and internationally. In a study published in 2021 by the USPTO, it was revealed that applicants for patents were eligible for international patent subsidies of up to $3 million annually. In order to meet certain innovation measures, the subsidies “appear to motivate strategic filing behavior, including the practice of splitting a single patent application into multiple applications,” the study suggests. 　　Such measures possibly reduce the value of the Chinese patent market while simultaneously increasing the number of Chinese patent applications. In comparison to patents issued in the United States, the USPTO realized that patents issued in China had a lower commercial value. 　　Additionally, high-profile cases of irregularity involving Chinese trademark registrations frequently reach the news. In 2022, the USPTO sanctioned a number of Chinese individuals and businesses for trademark infringement and breaking USPTO guidelines. 　　The Chinese government has made an attempt to tackle corruption in reaction to a low-valued patent market and high-profile fraud cases. A person was given a six-year, eight-month prison sentence in late 2020 for defrauding the Chinese government of more than $100,000 through 231 fraudulent patent applications. 　　According to the country’s blueprint, “Guidelines for Building a Powerful Intellectual Property Nation,” which was published in 2021, the planned system from CNIPA seeks to boost the Chinese intellectual property market. To strengthen adherence to intellectual property law and reduce fraud, the organization aims to accelerate the implementation of a credit-based regulatory framework. 　　The rising conflict between China and the United States over technology, trade, and intellectual property is the context to these events. There have been a number of failed attempts to settle intellectual property disputes between the two nations. And despite the Chinese government’s most recent actions and statements on the reduction of applications filed in bad faith, the nation’s position as the top filer of patents has only been better in recent years. Applications for utility model patents declined by 2.8%, while those for invention patents climbed by 5.9% and 4.6%, respectively, according to CNIPA’s annual report.