Protecting IP to smooth global innovation

Editor's note: China's rule of law is undergoing significant development in recent years. And China's promotion of the rule of law, and its building of a scientific legal system provide solid legal guarantees for the country's economic and social development.

As innovation is the primary driving force behind development, implementing an innovation-driven development strategy is a crucial choice determining a country's future. In advancing this strategy, the legal system plays an indispensable role.

There exists a profound intrinsic connection between the intellectual property legal system and the innovation-driven development strategy: the IP protection system is a key institution within a market economy environment for stimulating innovation vitality, safeguarding returns on innovation and driving industrial upgrading.

Protecting IP not only injects robust momentum into domestic innovation but also contributes Chinese strength to the healthy development of the global innovation ecosystem.

First, the IP system is the legal framework that defines the ownership of intellectual assets and facilitates market transactions to realize their value. According to economic theory, clearly defining intellectual property rights is a prerequisite for market exchange and value realization. The IP law grants innovators exclusive rights over their intellectual assets for a limited period, enabling them to recoup costs and earn profits through market transactions, thereby sustaining the cycle of innovation investment.

Without effective IP protection, free-riding would proliferate, dampening the enthusiasm of innovators and ultimately drying up the wellspring of innovation. Thus, the IP law is a legal system aligned with the principles of a market economy.

Second, the IP law plays a crucial role in optimizing the allocation of innovation resources. By ensuring the orderly use of intellectual assets, IP systems actively encourage continuous innovation and further investment in research and development.

A comprehensive IP protection framework not only effectively deters infringement, thus improving the business environment, but also, by defining rights, provides stable market expectations for the commercialization of IP, such as its implementation, transfer and licensing.

The "disclosure in exchange for protection" principle embedded in the patent system itself prevents wasteful duplication of research efforts while simultaneously offering the public a window into the latest technological progress. In this way, the IP framework serves a dual purpose: it safeguards inventors' interests while enriching society with valuable informational resources.

Third, high-level IP protection is an inherent requirement for creating a world-class business environment and deeply participating in global competition and cooperation.

IP systems are vital for knowledge-intensive industries and international technology trade. The level of IP protection in a country directly affects its ability to attract advanced technology and integrate into global innovation networks.

China's high-standard IP rule of law not only signals to the world its resolve to respect knowledge and protect innovation but also serves as a strategic pivot for enhancing national core competitiveness. China's active participation in international IP treaties and its effective, equal protection of IP rights holders from all countries directly demonstrate its responsible attitude toward the world.

Overall, the protection level of China's IP legislation is on a par with that of developed countries.

Alongside the continuous improvement of IP legislation, Chinese courts and government agencies at all levels have undertaken significant work in law enforcement. People's governments at the county level and above have established IP administrative agencies. These agencies are responsible not only for creating public awareness and encouraging innovation among market entities and individuals but also for handling relevant IP disputes.

The people's courts have implemented substantial reforms in institutional development and personnel training. As early as the 1990s, Chinese courts began establishing specialized IP tribunals, achieving specialization in adjudicatory bodies and judges.

The establishment of specialized intellectual property courts and tribunals across China commenced in 2014.Building on this framework, the Supreme People's Court took a further step in 2019 to harmonize adjudication standards for IP disputes nationwide.

While maintaining its existing IP tribunal, the Supreme People's Court instituted a dedicated appellate body for technically complex IP cases. This specialized tribunal holds exclusive nationwide jurisdiction over final appeals in such matters, ensuring greater consistency and expertise in the resolution of advanced technological disputes.

The IP protection system China has built serves not only domestic innovation but also exerts a positive and profound impact on the global innovation ecosystem.

First, China's practice provides a reference point for innovation governance in developing countries. With a large population and a per capita GDP significantly lower than that of developed Western countries, China has confronted the challenges brought by the digital economy and the information technology wave, forging its own path in IP development.

Second, as China's market economy continuously improves and its high-tech industries develop, the new types of IP disputes emerging in China surpass those in most developed countries both in variety and number. The experience Chinese courts have gained in adjudicating cases involving artificial intelligence, indirect infringement, standard-essential patents, as well as those related to big data, short videos and virtual spaces, provides useful reference and insights for other countries dealing with similar issues.

Third, as the world's second-largest economy, China's sound IP protection system directly affects the global innovation ecosystem. China's consistent strengthening of IP protection sends a clear and positive signal to global investors and innovators, while also demonstrating China's proactive efforts to build a community with a shared future for humanity.

The implementation of the innovation-driven development strategy inevitably requires establishing a favorable IP protection environment. Perfecting the IP protection rule of law and implementing the innovation-driven development strategy are mutually reinforcing.

Continuously deepening reforms, refining the IP legal system and further advancing the implementation of the innovation-driven development strategy will not only provide powerful momentum for China's modernization but also contribute to building a vibrant, inclusive and orderly global innovation ecosystem.

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