Domestic firms increasingly aware of value of IP

For Long Weimin, a 58-year-old mechanical engineer with decades of experience and hundreds of inventions to his name, nothing is more exciting than innovations that can solve problems in the real world.

A chief engineer at Zhengzhou Research Institute of Mechanical Engineering Co Ltd, Long has also been appointed a patent review consultant by China's top intellectual property regulator.

However, in the early years of his career, Long was unaware of the significance of a patent certificate. It wasn't until 2015, when an overseas company challenged an infringement claim on a brazing material product developed by his institute, that he realized its importance. Thanks to several patents secured in advance, Long and his team were able to successfully convince the challengers and secure global orders from leading enterprises.

Today, Long takes pride in showcasing the wall of patent certificates to visitors at his company. Many of these patents have earned numerous accolades and are featured in the country's space station and rockets, a source of national pride for the entire team.

Like Long, an increasing number of Chinese inventors and companies are recognizing the value of IP and using it to protect their innovative creations.

State-owned enterprises like China Railway Engineering Equipment Group Co Ltd also reap significant benefits from IP. The company has exported its self-developed tunnel boring machines to over 30 countries, generating patent transfer revenue exceeding 8 million yuan ($1.1 million).

China has become the world's first country with over 4 million valid invention patents, with enterprises being the main contributors. According to the National Intellectual Property Administration, as of November 2024, the proportion of domestic valid invention patents held by enterprises reached 73.5 percent.

Many companies are realizing that IP not only generates profits but also protects a company's image and helps maintain order within the industry.

In Yuzhou, Henan province, Jun porcelain is a pillar of the local economy. Since 2003, delicate porcelain artworks have been gifted to foreign heads of state or collected in national museums and galleries. However, this growing popularity has also fueled a rise in counterfeit products.

One local workshop owner lamented that while a genuine Jun porcelain vase was priced at 120,000 yuan, a counterfeit version could be sold for only 300 yuan.

Counterfeiting has severely impacted the reputation of leading enterprises. In response, these companies have enhanced IP protection by securing design patents and collaborating with authorities on enforcement. The local government also conducted special law enforcement operations to raise IP awareness.

In May 2024, a rapid IP rights protection center for porcelain patents was established in Yuzhou, slashing patent processing time from four months to just seven to 10 working days.

Through rapid authorization, enterprises can secure quick protection for their innovations and prevent replication or infringement by competitors, thereby safeguarding their market share and profits.

As Chinese enterprises become more involved in global trade, an increasing number are facing IP disputes abroad. The lack of expertise, response capacity and access to critical information have emerged as major obstacles, preventing some companies from expanding internationally.

To address this, China has established IP centers nationwide to manage disputes and guide Chinese enterprises in safeguarding their IP rights overseas. In addition, the NIPA has also intensified efforts on training and expert guidance, issuing monitoring reports and reminders to alert enterprises on potential risks.

Yutong, a leading electric bus manufacturer, benefited from specialized training by NIPA's patent examination cooperation center in Henan ahead of the 2023 world bus expo in Belgium. The training, including patent early warning analysis, helped the company manage exhibition risks and boosted its confidence, leading to successful participation at the expo.

Overseas markets have become the main driver of Yutong's performance growth. Its pure electric buses topped the European market in sales in 2022 and overall sales volume increased by 79 percent year-on-year in 2023.

Xinhua - China Daily