Intellectual Property Development in Shenzhen 2011
The Year of 2011 is the start point of China’s 12th Five-Year Plan (2011-2015). It is also the year the concept of Shenzhen Quality is raised. As an important measure to enhance the concept of Shenzhen Quality, Shenzhen continued its efforts in promoting the strategy of a city strong in IPR, gave full play of IPR in promoting innovation, development and transformation by firmly mastering the theme of scientific development and the principle of accelerating the economic restructure, committed to achieve a good start for IPR development in the 12th Five-Year.
1. Centering on the Goal of Fortifying the Concept of Shenzhen Quality through Implementation of the Strategy of a City Strong in IPR
(1) IPR Management System Achieved Further Improvement. The government took advantage of institutional reform started in 2009 to plan and promote works of trademark, patent, copyright and other aspects of IPR. By building a new pattern of overall IPR management, IPR management and services are strengthened significantly. To fortify the image of Shenzhen as a city of valuing innovation and respecting IPR, the enthusiasm of independent innovation to support the construction of an innovative city has been held firmly. During the adjustment of organizational structure in 2011, the municipal government decided to reestablish the Intellectual Property Office. The decision is a strong assurance to speed up building a national innovation-oriented city, deepened the concept of Shenzhen Quality and the implementation of IPR strategy from all aspects. The State Intellectual Property Office of PRC sent a letter to congratulate Shenzhen government, while Mr. Tian Lipu, chief of State Intellectual Property Office, attended the opening ceremony of SZIPO in person. He sang high praise of the event and regarded it as a milestone in the reform of IPR management system, saying that IPR works in Shenzhen has entered a new stage of development.
(2) The Outline of Intellectual Property and Standardization Strategy Published. On December 23rd, 2011, the municipal government issued the Outline of Intellectual Property and Standardization Strategy (2011-2015). As the first outline in China to closely combine IPR with standards, it specifies the development goal and the strategic focus of IPR and standardization works of Shenzhen in the next five years, and proposing a strategic objective to establish Shenzhen into a model city combining IPR with standardization. The outline is a programmatic document for IPR and standardization works serving economic development in the new era and guidance for the following five years. By implementing the strategy outline, Shenzhen speed up the construction of IPR center and IPR pledge loan, reinforce the strategy of a city strong in IPR.
(3) The Coordination Mechanism of IPR Further Strengthened. In 2011, IPR Joint Conference system improved, more members accepted, and overall planning and coordination capability strengthened. There were 12 IPR related conferences held to deploy implementation of IPR, to study IPR development situation and to exchange opinions. More than 200 joint law enforcement actions were completed in the events of China (Shenzhen) International Cultural Industries Fair, Hi-Tech Fair, the World Intellectual Property Day (April 26th), as well as special actions to combat IPR infringement, manufacturing and selling counterfeits and the IPR protection of UNIVERSIADE 2011. These actions further strengthened the joint law enforcement mechanism of IPR and established a highly efficient collaboration. The People’s Procuratorate took the initiative to enhance communication with administrative organizations to reach a consensus and by signing normative documents on case transfer, further improved the connection between judicial law enforcement and administrative law enforcement.
2. Industry Upgrading and Transformation is Promoted by Generation and Utilization of IPR
(1) New Breakthrough of IPR Generation. The number of patent applications and ownership has already been incorporated into China's 12th Five-Year Plan and the Pearl River Delta Reform and Development Program. Meanwhile, it will be used as an important indicator to assess governments at all levels. By the end of 2011, valid domestic invention patents in Shenzhen were added up to 40,495 with patent density of 39 per 10000 persons, ten times higher than the goal set in the 12th Five Year Plan of 3.3 per 10000 persons by 2015, ranking the top in China. Shenzhen also stood the first place among sub-provincial cities by 81 well-known trademarks recognized. In Addition, the valid registered trademarks totaled 171,091 which indicate each 5.03 market entities owned a registered trademark, higher than the average number of 5.4 in 2010. In 2011, domestic patent applications (per 1 million persons) amounted to 2,766,200 more than the goal of 2,505 set by the provincial government. PCT applications reached 7,933, ranking the top in China for eight consecutive years, accounting for 45.4% of the total of 17,473 in China. ZTE hit the first position in the world with 2,826 PCT applications.
(2) New Progress in the Establishment of IPR Alliance. In recent years, Shenzhen attached great importance to the establishment of IPR Alliance. On the basis of the Chinese Color TV Patent Alliance and Shenzhen LED Patent Alliance, 2011 also saw the establishment of Shenzhen New Energy Standards and IPR Alliance, Metamaterials Technology Industrial Alliance and Biological Pharmaceutical Patent Alliance. These IPR Alliances, combined with respective industry characteristics, have made significant achievements such as building the public IPR service platform, speed up the establishment of patent pools, conduct innovative activities, coping with license fees or litigation of the foreign patent holders collectively and promoting combination of IPR with standards. As founder-members, Shenzhen Kuang-Chi Institute of Advanced Technology and Beijing Genomics Institute-Shenzhen launched innovation program and industrial distribution in fields of metamaterial technology and biomedicine. Kuang-Chi Institute of Advanced Technology applied for more than 1000 invention patents in 2011, ranking No.1 in the city’s strategic emerging industries.
(3) New Level of IPR Exploitation. A group of enterprises with IPR advantages continued to play the leading role of innovation. Four enterprises in Shenzhen were listed in the Top 10 Enterprises with the most invention patent grants in 2011, among which ZTE Communication Co., Ltd., Huawei Technologies Co., Ltd. and Hong Fu Jin Precision Industry (Shenzhen) Co., Ltd. took the first three places. A large number of SMEs followed their leads and emerged as the second echelon and became the main force in IPR applications. The investment in R&D increased continuously, accounting for 3.66% of Shenzhen’s GDP in 2011. During the same period, high-tech industrial output reached RMB1.187561 trillion, up by 16.7% year on year. In 2011, Shenzhen Huawei Technology Co., Ltd. and other enterprises were granted with 3 Gold Prizes, 9 Outstanding Awards and 5 Appearance Design Awards in the 13th China Patent Award. Tencent Technology (Shenzhen) Co., Ltd. and Huawei Technologies Co., Ltd. won Trademark Innovation Award and Trademark Utilization Award recommended by the National Industrial and Commercial Administration and reviewed by the World Intellectual Property Organization respectively. Moreover, Shenzhen Thunder Network Technology Co., Ltd., Kingdee Software (China) Co., Ltd., Shenzhen Sea Sky Land Technology Co., Ltd. and Nanshan Digital Culture Industry Base won the title of Demonstration Base of Copyright Industry in Guangdong. IPR transactions and transformation were promoted by Hi-Tech Fair and China (Shenzhen) International Cultural Industries Fair. Regulations of Promoting the Utilization of Intellectual Property Rights in Shenzhen was drafted to propel transformation and industrialization of state-owned IPR and strive to transform Shenzhen into the foundation of IPR exploitation.
3. IPR Protection Reinforced by Combining Routine Supervision with Special Action
(1) Administrative and Judicial Protection of IPR is Further Reinforced. In 2011, concerning municipal administrations investigated and prosecuted 2,143 IPR infringement cases in which 153 cases were transferred to the public security bureaus. 323 sites of manufacturing and selling counterfeits were destroyed; 230 million pieces of counterfeits were seized. The public security bureau investigated and prosecuted 799 IPR infringement cases and solved 714, detained 1,198 and arrested 631 suspects, cracked 1,500 sites and 143 gangs. Moreover, 65 internet sites that were spreading piracy were shut down, while more than 12.21 million pieces of pirated and counterfeited goods with value equal to more than RMB678 million were confiscated. The People's Procuratorate accepted and investigated 255 IPR infringement cases and arrested 462 people, while 361 people involved in 227 cases were arrest approved. Meanwhile, the People's Procuratorate accepted 281 IPR infringement cases (441 people involved) among which 220 cases were prosecuted (372 people involved). The courts of all levels accepted a total of 7,457 IPR litigation cases throughout the year and closed 6,495 cases. Shenzhen Customs took more than 5,500 IPR law enforcement actions and provided 39 investigation clues to the public security bureau, tracked down more than 19 million infringing goods with value added up to RMB180 million .
(2) Special Actions of Cracking Down on IPR Infringement and Manufacturing and Selling Counterfeits Achieved Significant Results. In accordance with the unified deployment of the State Council and the provincial government, Market Supervision Administration of Shenzhen took the leading role in organizing special actions to crack down on IPR infringement and manufacturing and selling counterfeits from October 2010 to June 2011. A number of sites of manufacturing and selling counterfeits were destroyed, a number of key cases were investigated and prosecuted, good mechanisms and practices were established while at the same time the whole society's awareness of IPR protection was enhanced. Through these actions, the Market Supervision Administration, Municipal Bureau of Culture, Sports and Tourism, Drug Administration of Shenzhen Municipality, Tobacco Monopoly Administration of Shenzhen, Agricultural and Fishery Bureau and other administrative authorities investigated and prosecuted 1,057 IPR infringement cases in which 70 cases were transferred to the public security bureau. In addition, 204 sites of manufacturing and selling counterfeit were destroyed, RMB120 million worth of illegal goods were confiscated. The public security bureau investigated and prosecuted 511 cases and closed 454 cases, detained 872 criminal suspects, destroyed 391 production sites and 104 gangs. Moreover, they seized more than 6.99 million pieces of piracy and counterfeiting goods with value as much as RMB 367 million. The People's Procuratorate prosecuted 131 IPR infringement cases (235 suspects involved), involving a total value amounts to RMB 390 million. The court of all levels accepted 3391 new civil IPR cases of trial of first instance, 305 cases of trial of second instance and closed 3,147 and 367 cases including old ones) respectively. The courts also accepted 164 new criminal IPR cases and 15 cases of trial of second instance, closed 281 cases including old ones). Shenzhen Customs investigated and prosecuted more than 17 million pieces of infringing goods with value amounts to more than RMB 32 million. Shenzhen Entry-Exit Inspection and Quarantine Bureau inspected nearly 2,300 enterprises, , and successfully destroyed 23 sites of making counterfeiting certifications with the support of Shenzhen public security bureau, captured 44 suspects.
(3) IPR Protection of Universiade 2011 Completed Satisfactorily. In 2011, the government made great efforts to crack down IPR infringement during the Universiade 2011 by carrying out special law enforcement inspection and IPR registration. By the end of 2011, Market Supervision Administration of Shenzhen Municipality and other IPR administrative departments dealt with more than 120 IPR infringement cases related to Universiade 2011 in joint efforts, investigated and prosecuted 20 cases, another 5 cases had been transferred to the public security bureau. 5,000 flags, 4,000 reusable shopping bags and 500 T-shirts that involved in infringing the registered trademarks and the right to use special marks were confiscated. All in all, IPR infringement was curbed effectively during the Universiade 2011.
4. IPR Service System and Management Improved Continuously
(1) Latest Attempt in Providing Tailor-made IPR service. In 2011, Market Supervision Administration of Shenzhen Municipality launched tailor-made IPR service for Shenzhen Kuang-Chi Institute of Advanced Technology and Beijing Genomics Institute-Shenzhen. Special team of IPR and standardization personal was established to facilitate the two enterprises, providing 13 specific services such as proposing plan to guide the completion of IPR strategy, give on-site special training, help improve IPR protection and standardization system and build an information exchanging platform with the review department of the SIPO. With the guidance of tailor-made service, Kuang-Chi Institute increased the number of metamaterials patent applications dramatically and made early arrangement for entering the international market. The tailor-made service has been included in government policies. It is a well intended attempt made by the government to bring about service innovation in the new period and has been affirmed by the higher authorities.
(2) IPR Funding Played an Important Part in IPR Generation. Market Supervision Administration of Shenzhen Municipality and Shenzhen Finance Committee revised and published Measures for Management of IPR Special Fund of Shenzhen in joint effort to expand the scale of special funds. In 2011, the city’s budget of special IPR funds reached RMB 200 million. By bringing the leverage role of the funding into full play, the government encouraged enterprises in Shenzhen to apply invention patents at home and abroad, register trademark abroad and register computer software copyright. In 2011, the number of domestic patent applications amounts to 63,522, with a year-on-year growth of 28.51%, in which 28823 were invention patent applications, with a year-on-year growth of 20.32%. The number of domestic patents granted reached 39363, with a year-on-year growth of 12.62%. The number of domestic invention patents granted added up to 11,826, with a year-on-year growth of 23.0%.The number of trademark applications amounts to 53,658, with a year-on-year growth of 44.12%. And the number of registered computer software copyright is 9,529, with a year-on-year growth of 19.5%. Besides, Market Supervision Administration of Shenzhen cultivated an additional 20 enterprises with IPR advantages, awarded 25 patent prizes in Shenzhen, funded 16 IPR warning analysis system and public service projects of copyright online reference, 2 IPR alliance building projects and 53 training sessions.
(3) IPR Management Measures Improved. Market Supervision Administration of Shenzhen Municipality, with joint efforts of members of the Municipal Intellectual Property Joint Conference, intensified the construction of National IPR Model City and the Model City Implementing National Trademark Strategy, strived to introduce PCT Accepting and Review Center into Shenzhen. The administration studied and drafted Service Specification of Shenzhen Patent Agency which became a local standard to develop high-end IPR services. The district governments took the initiative to improve IPR management. To name a few, Bao'an District developed the Outline of Development Strategy of Intellectual Property Rights in Bao'an District during the 12th Five-Year and modified Measures for Management of Special Funds in Accordance with the Strategy of Strong District of Intellectual Property Rights and Quality. Futian District set up six IPR workstations in Tianmian Design Center, Yachang Art Museum and Central Book Mall to give IPR advices, accept complaints and guide the IPR works of enterprises.
5. Further Promoting the Construction of IPR Culture and Foreign Exchange and Cooperation, Optimizing Social Atmosphere of Respecting IPR
(1) IPR Popularization Attracts More Attention. In every important events such as World Intellectual Property Day(April 26th )，Hi-Tech Fair，China(Shenzhen) International Cultural Industries Fair, Patent Week and Trademark Festival, IPR popularization attracts more and more attention. Moreover, the White Paper on Intellectual Property Rights Development in Shenzhen was published for seven consecutive years, Shenzhen IPR index system was released for five consecutive years and Top 10 IPR Events were nominated for four consecutive years. Shenzhen was also the first city in China to publish White Paper on Copyright Development in Shenzhen. Furthermore, Market Supervision Administration of Shenzhen Municipality set up its official Weibo of Shenzhen IPR to release important information from time to time and sent 250,000 prompt messages of the World Intellectual Property Day through the service number 10000 of CMCC. In addition, district governments delivered IPR knowledge to enterprises, communities and schools in many ways. Shenzhen Special Zone Daily, Shenzhen Economic Daily, Daily Sunshine and other media set up special columns, Shenzhen News Network and Tencent Network set up special IPR website pages to expand IPR influences. Many media have made in-depth reports of IPR works in Shenzhen including CCTV, Focus, People's Daily, Economic Daily, Xinhua News Agency, Guangdong TV and Southern Daily, receiving extensive feedback.
(2) Steady Progress in Training of IPR Talents. Continuous efforts were made in cultivation of IPR Celebrity Lecture and IPR Shenzhen Forum. 28 training sessions were completed with more than 5,000 personas participated in 2011. People's Procuratorate of Shenzhen hosted a seminar in the topic of Combat and Prevent IPR Infringement, establishing a platform for studying theory and practice of IPR protection. The Market Supervision Administration facilitated the establishment of IPR Institute of Shenzhen University. The administration and the university held the first preparatory meeting of the Institute council, coordinated and improved the Council Constitution, drafted and completed rules to evaluate students and formulated related Funds Management Methods. The first group of 20 graduated students of IPR major is in the process of internship. Moreover, through close communication with the Human Resources and Social Security Bureau, professional title appraisal of IPR continued in 2011. 30 professionals obtained professional title of IPR among which 8 were awarded associate researcher, 18 were awarded intermediate title and 4 were awarded junior title.
(3) International Cooperation of IPR Intensified. In 2011, the government continued to expand the scope of IPR cooperation and enhance the level of international cooperation and exchange. IPR dialogues and cooperation with USA, Japan and Australia embassies and consulates continued to announce latest achievements in IPR and to learn from the developed countries. Official meetings were held with representatives of many transnational corporations and agencies. The city offers complete IPR protection. By signing Cooperation Memorandum of Transferring Patent Infringement Cases amongst 12 Coastal Cities of Fujian and Guangdong Provinces, the ties of regional IPR protection were strengthened. Furthermore, the 2011 Forum of IPR Protection of Foreign Organizations in China under the theme of innovation, protection, development was held in Shenzhen. With a regular communication mechanism, measures and approaches to solve IPR protection issues were exchanged constantly which raised the level of international cooperation.
In 2011, centering on the goal of Shenzhen Quality, the government improved the overall system of IPR administration. The strategy of building a city strong in IPR has been incorporated into the city’s development strategy to drive industrial upgrading and transformation, which laid a solid foundation for IPR development. However, the drawbacks of lacking talents and operation supports in IPR field still exist, the strategy of a city strong in IPR need yet to be intensified. These issues shall be solved with full support from all sectors of our society.
The Year of 2012 is a year for implementing the strategy of IPR and standardization in Shenzhen. Standing at this starting point, centering on pursuing the goal of Shenzhen Quality, the city will continue to reform and innovate with a firm belief that IPR shall become strong support for building a national innovation-oriented city.