The National People’s Congress (NPC) of China is expected to publish details of its new National IP Strategy later this year and some experts believe this could position the thriving communist nation as the best place to innovate.

While it is not yet clear what the new IP strategy will include, the NPC has already indicated that it aims to raise IP awareness throughout the whole country. In doing so, the Congress hopes to reduce the number of patent and trademark infringements and at the same time, encourage more Chinese companies to protect their own inventions.

Adrian Tombling, patent attorney at Withers & Rogers, said:

“Currently known as the ‘masters of copying’, China has a long way to go to build its global reputation as the best place to innovate and it is not yet clear how far the new IP strategy will go.

“However, the NPC has committed to making these changes and instead of telling workers to ‘go ahead, copy and make’ they will be telling them to ‘go ahead, innovate and protect’.”

Among the most likely changes, the strategy may include stronger penalties for infringements and new and further tax incentives for companies seeking patent protection in China and possibly also overseas. While some of these measures already apply under the existing IP system, the new IP strategy is expected to seek to improve their enforcement.

According to Withers & Rogers, the full impact of these expected changes is still being assessed. One possibility is that we could start to see more global research and development activity locating in China rather than in more traditional territories such as the UK, US and Europe. For companies already innovating in China, it will be too late to seek patent protection for advances that have already been made public. However, they may choose to seek trademark or design right protection instead.

Adrian Tombling added:

“China’s coming of age as a new hub for innovation could pose real risks for the UK economy. A stricter IP regime, combined with lower labour costs, could encourage some multi-national businesses to relocate their research and development activity in China and this could be the start of a knowledge exodus to the Far East.

“The flip side is more positive. Innovative UK businesses will benefit from better global IP protection, enabling them to bring their products to market in China, with a reduced risk of features being copied.”

China’s new National IP Strategy is expected to be introduced later this year, but not before the first plenary session of the 11^th National People’s Congress on 5^th March 2008.

4 February 2008
ENDS

For more information contact:

Richard Ayres, Marketing and Business Development Manager at Withers & Rogers Tel: 01926 310700 or message him.

Or

Christine Smart, Joanna Buckle or Beth Zaltzman at SMARTS on 0121 456 3199 or christine.smart@iassmarts.com.

Notes to the Editor

Established in 1884, Withers & Rogers LLP is one of the top ten patent and trademark attorney firms in the UK providing expert advice on the protection and enforcement of intellectual property rights particularly for inventions, designs and trademarks.

With over 100 partners and staff, Withers and Rogers has three principal regional bases in the Midlands; London and the South East and the West and Wales. The firm’s client portfolio stretches across the Americas, the Far East, Japan and Australia as well as mainland Europe.

Withers & Rogers has a client base of more than 10,000 organisations ranging from major corporations and multi nationals to small and medium-sized enterprises, universities and science parks.