China Subsidizes Patent Applications

China provides subsidy at central government level and local government level for patent applications.

Beijing provides a sum of one million yuan in support of the patent applications in the city. It will solely be distributed by Beijing Intellectual Property Rights Bureau. All Beijing enterprises, units and institutions under the central government (including army units) in Beijing and residents who apply for patent rights are qualified to apply to Beijing Intellectual Property Rights Bureau for patent application funds. Patent funds are available for the application fees of invention, products of new type or design, as well as fees for invention examination and maintenance.

A special fund will focus on subsidizing foreign patent applications, the type of patent protection of which is the same as that of Chinese invention patents. Each patent application subsidy project will support applications in not more than five countries or regions with up to 100,000 yuan, except for major innovation projects.

Shanghai has put forward a regional intellectual property rights strategy, Shanghai Municipal Intellectual Property Rights Outline 2004-2010. It aims at making Shanghai an energetic center for innovation, patent transforming, and a metropolis of powerful and sound intellectual property rights protection. By 2010, Shanghai is expected to have a synchronous growth in patent application, with 150 invention patents for every one million people on average. All companies located in Shanghai, without exception, may apply for the patent subsidy under the following conditions:

- Their products have wholly-owned intellectual property rights and are in accordance with the state and the local industrial trend.

- The new technique takes a leading position internationally and can pass the new product appraisal within three years.

- The new product can bring in better economic and social results.

Chen Zhixing, head of the Shanghai Bureau of Intellectual Property Rights, said the new measures for patent subsidy were seasoned with the fierce competition in international intellectual property rights. The outline is crucial for Shanghai to upgrade its competitive ability. It is of great significance for the metropolis to seek quicker development in intellectual property rights.