Plaintiffs in patent cases are often challenged by high costs, difficulty in collecting evidence and time-consuming procedures as they try to protect their intellectual property rights through the judicial system, said experts at a recent forum in Beijing.
The seminar on how to strengthen administrative enforcement was held last Friday to define ways patents can be protected without complex court cases.
Organized by the China Intellectual Property News, the event attracted more than 30 representatives from universities, government agencies and corporations to discuss problems with current legal mechanisms.
Experts at the forum said administrative enforcement is more effective, convenient and simple, fitting the needs of China's current socio-economic development.
In 2013, intellectual property offices and IP protection centers resolved more than 5,000 patent disputes nationwide, double the number a year earlier, according to the China Intellectual Property News.
Chen Jiquan, chairman of Zhejiang Yalong Educational Equipment Co, told China Daily his company suffers losses of up to 100 million yuan ($16.1 million) every year from patent infringement.
The company has more than 230 patents and spends some 20 million yuan a year on innovation.
Chen cited counterfeiting of the company's core invention, a device used in teaching electronic and mechanical engineering. Fakes are sold in about 10 cities and regions nationwide.
"The rampant copycats have also greatly dampened initiative by our technicians," he said.
"The IP protection center in Wenzhou where the company is headquartered has provided great support helping us deal with counterfeits, but in some other cities and regions, work by administrative organizations still needs improvement," he said.
He suggested that IP protection centers be established in all counties with prosperous economies. As well, those centers and intellectual property offices should have good relationships with local police to work together in joint enforcement, said Chen.
Li Heying, marketing manager of Shanghai Huapeng Explosion-Proof Technology Co, said her company's biggest problem is malicious patent applications.
More than 20 companies and individuals have infringed on the company's patents for explosion-proof designs, Li said.
"Infringers steal our patents and then file new patent applications after changing the name or making unimportant changes.
"As a private company, we feel sad that we have to invest so much in human and material resources to safeguard our IP rights," she said.
Li said patent authorities should have more severe punishments to reduce infringement and should set up a nationwide administrative enforcement website while enhancing cross-regional cooperation.
Wang Zhichao, a senior official of the patent enforcement office at the State Intellectual Property Office, said SIPO will further standardize and define regulations in administrative enforcement, with a related policy expected to be released in July.
"Given the increasing patent infringements in the e-commerce sector, we are working on dedicated protection measures in this field," Wang said.
An information sharing system is also under development that will include patent disputes resolved by IP administrative organizations nationwide, he added.
Chen Jian, a senior official of the patent enforcement office at the Beijing Intellectual Property Office, said most of small and mid-sized companies cannot afford the long-term and repeated patent disputes.
"I heard that some companies regretted filing patent applications because they pay a large sum of fees annually to maintain patents, but found their rights cannot be effectively protected," Chen said.
"So, the IP administrative organizations should put more focus on patent protection of SMEs because they will play an important role in strengthening China's innovation capacity."
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(China Daily 06/25/2014 page17)
