[Xiaokang Magazine] Focus on Accelerating the Building of IP Power and Pushing Forward the New Journey of Building Shanghai into an Asia-Pacific IP Hub July 23, 2018 Xiaokang/CHINAXIAOKANG.COM CHINAXIAOKANG.COM Beijing, July 23 (Jin Jing, reporter of Xiaokang Magazine and Xiaokang Omnimedia) In order to fully demonstrate the major progress and outstanding achievements made in China's intellectual property field over the past 40 years of reform and opening-up and the past decade since the implementation of Outline of the National Intellectual Property Strategy, the State Intellectual Property Office has recently, according to the unified deployment of the Publicity Department, CPC Central Committee, organized press corps from Science and Technology Daily, Economic Daily, Xiaokang Magazine ( a subsidiary of Qiushi Magazine), Outlook Weekly of Xinhua News Agency, China Patents & Trademarks, China Intellectual Property News, China Industry and Commerce News, People's Daily Online and China Web, etc. to launch interview activities themed by “the future of intellectual property competition” in four cities throughout the country. At the third stop - Shanghai, the press visited Shanghai Intellectual Property Administration, China (Pudong) IP Protection Center, Shanghai Intellectual Property Court, Shanghai International College of Intellectual Property of Tongji University and intellectual property management departments, etc. and investigated how many well-known enterprises in Shanghai manage to protect their IP and realize the core value of innovative enterprises. In the past decade since the implementation of the Outline of the National Intellectual Property Strategy, Shanghai has achieved leapfrog development in terms of intellectual property work and made remarkable progress in intellectual property creation, application, protection, management and services, with its comprehensive strength of intellectual property ranking among the top of the country. Intellectual property has been playing an increasingly important role in Shanghai's economic and social development, and its effect has beenmore and more prominent. Rui Wenbiao, Deputy Director of Shanghai Intellectual Property Administration, said in an interview with Xiaokang reporter, that in 2004, Shanghai took the lead in formulating Outline of Shanghai Intellectual Property Strategy (2004-2010) (hereinafter referred to as “Shanghai Strategy”) nationwide. During the implementation of local intellectual property strategy outlines, Shanghai Municipal Government issued Several Opinions on Implementing the Outline of National Intellectual Property Strategy in Shanghai on September 23, 2008 based on the objectives, priorities and measures proposed in the newly enacted Outlines, further proposing 25 measures in eight aspects and enabling Shanghai to align its local intellectual property strategy with the national intellectual property strategy. To support the implementation of the national intellectual property strategy, Shanghai issued Outline of Shanghai Intellectual Property Strategy (2011-2012) in 2012, which set out the strategic goal of building Shanghai into an Asia-Pacific IP hub; in 2016, Shanghai issued Opinions on Strengthening the Application and Protection of Intellectual Property Rights to Support the Construction of Sci-Tech Innovation Center, defining 12 specific measures and encouraging “early and pilot Implementation” in variousfields, so as to bring into better play the role of intellectual property in supporting sci-tech innovation. Over the past decade, the number of patent applications and patents granted in Shanghai has increased from 52,800 and 24,500 in 2008 to 131,700 and 70,500 in 2017, with an average annual increase of 11.02% and 13.52% respectively. The number of invention patents per 10,000 people rose from 6.8 in 2008 to 41.5 in 2017, exceeding the target proposed in Shanghai's 13th Five-Year Plan ahead of schedule - “by 2020, the number of invention patents per 10,000 people in Shanghai will reach 40.” In the past decade, the number of trademarks, copyrights and other intellectual property rights in the possession of Shanghai also made a breakthrough. By the end of 2017, the total number of effective registered trademarks in Shanghai had reached 878,500, and the average number of valid trademarks per 10,000 market entities reached 3,751, ranking second in the country. Meanwhile, Shanghai has scored a first in conducting researches on the contribution of copyright industry to the economy nationwide. The added value of copyright industry rose from RMB 139.411 billion yuan in 2008 to RMB 297.387 billion yuan in 2015, with an average annual growth of 11.50% and showing a greater contribution of intellectual property rights to the economy. It's reported that in recent years, Shanghai Intellectual Property Administration has been ceaselesslypromoting financial services for intellectual property, with Shanghai's annual patent pledge amounting to RMB 660 million yuan in 2017. In the meantime, Shanghai IP Operational Fund for Key Industries made a RMB 75 million yuan equity investment into one IP service agency and two tech firms. Rui Wenbiao remarked that in the future, Shanghai will, in the light of the new requirements to speed up the building of IP Power and Shanghai Technology Innovation Center, make further endeavors to build Shanghai into an Asia-Pacific IP hub, enhance the role of intellectual property rights work in serving the overall economic and social development, and spare no effort to support Shanghai’sinnovation-driven transformation and upgrading of development and economy. Promoting the cultivation and training of international IP talents The reporter of Xiaokang learned from Shanghai International College of Intellectual Property of Tongji University that as one of the key milestones in building Shanghai into a technology innovation center of global influence, China's first intellectual property college with an “international” title - Shanghai International College of Intellectual Property was inauguratedon November 17, 2016. Shanghai International College of Intellectual Property is the 7th training base for intellectual high-end IP talents set up by the World Intellectual Property Organization (WIPO) across the world, boasting innovations in global enrollment, international faculty, innovative teacher evaluation & employment, talent training and scientific research. At present, it offers Master Program in Intellectual Property law (Design Law) and “the Belt and Road Initiative” Postgraduate Program in Intellectual Property, attended by international students from more than 10 countries and Chinese students. The college also undertook a number of national key projects and built a national IP think tank. In the interview, Professor Shan Xiaoguang, Dean of Shanghai International College of Intellectual Property, said that Shanghai will centralize nationwide intellectual property resources after becoming an Asia-Pacific IP hub, and cultivating high-quality foreign-related IP talents is key to attracting relevant international organizations in terms of intellectual property services to settle in Shanghai. He introduced how foreign countries train foreign-related IP talents with the examples of German Max-Planck-Innovation and Competitiveness Institute, and stressed the importance of language and international and professional knowledge. Optimizing FTZ business environment to provide powerful judicial service and guarantee China (Shanghai) Pilot Free Trade Zone (Shanghai FTZ) is the first free trade zone in China. Shanghai actively participated in the formulation of relevant laws and regulations, being a pioneer in putting forward the thinking and operation mode of intellectual property management and protection in FTZ. With the rapid development of Shanghai FTZ, the demand for IP judicial protection is ever increasing. Shanghai Intellectual Property Court has, since its establishment on December 28, 2014, proactively responded to the judicial needs in FTZ and set up a special collegial panel to undertake the centralized trials of FTZ-related civil and administrative intellectual property cases. It's learned that in October 2015, Shanghai Intellectual Property Court received a letter from Etienne Sanz de Acedo, then President of the International Trademark Association, stating that “since its establishment in December 2014, Shanghai Intellectual Property Court has done a great deal of work to support the building of a technology innovation center with global influence in Shanghai and particularly they have been coming up with innovative ways constantly in terms of improving the mechanism for communicating and coordinating with IP-related departments and strengthening the cooperation with IP intermediary agencies, service organizations and industry associations, thus establishing a comprehensive IP protection system. It has reached a broad consensus with the International Trademark Association on supporting the development of trademark and intellectual property protection, protecting the interests of right holders and consumers, and facilitating a fair and effective trade order.” Over the past three years, Shanghai Intellectual Property Court has handled 769 cases involving foreign countries, Hong Kong, Macao and Taiwan, and concluded 609 cases. The parties involved came from more than 20 countries and regions such as the United States, Britain, France, Germany, Japan and South Korea. 656 cases involved foreign enterprises as the plaintiffs and 683 cases as the defendants, basically half and half. “Fortifying IP protection and creating an open, transparent, stable and predictable business environment is a key indicator of a country's global competitiveness,” said Li Shulan, Vice President of Shanghai Intellectual Property Court, “Shanghai Intellectual Property Court has been giving full play to the leading role of judicature in IP protection, adhering to the principle of rigorous and equal protection, and pushing forward the reform and innovation in the field of IP trials to improve the trial quality and efficiency and strive to make Shanghai Intellectual Property Court one of the most favorable options for IP litigations, so as to provide powerful judicial guarantees for optimizing the sci-tech innovation environment and building a legalized, international and advantageous business environment.” Building“Pudong Model” as per the strategy of building IP power and exploringmore commonly applicable experiences As the core function area of Shanghai's sci-tech innovation center with global influence, Pudong has always a national frontrunner in terms of building an IP Power. On July 25, 2017, China (Pudong) Intellectual Property Protection Center was officially inauguratedat the government of Pudong District. This is the first state-level IP protection center set up in Shanghai, which provides rapid and concerted IP protection for high-end equipment manufacturing industry and biopharmaceutical industry, and gives a strong impetus the construction of FTZ and sci-tech innovation center with global influence. Zhang Jun, Deputy Director of Pudong Intellectual Property Administration, said in an interview with Xiaokang reporter that Pudong New area is the main battlefield of China (Shanghai) Pilot Free Trade Zone, where the development high-end equipment manufacturing, biopharmaceutical and other emerging Industries outpace the nation. With the support of the State Intellectual Property Office and Shanghai Intellectual Property Administration, Pudong New Area’sParty Committee and People's Government devoted much attention to the construction of China (Pudong) Intellectual Property Protection Center. In February 2018, China (Pudong) Intellectual Property Protection Center was officially launched, providing quickexamination, right verification, right protection and so on, and achieving good results. Up to the beginning of July, China (Pudong) Intellectual Property Protection Center had accepted 167 cases involving preliminary examination of patents, of which 113 were invention patents, 48 utility model patents and 6 design patents. 79 cases were concluded or subject to trial. 33 cases ended with patent granting after quickexamination through the preliminary examination service by China (Pudong) Intellectual Property Protection Center. More than 200 enterprises registered their patents after quick examination by the State Intellectual Property Office. Since 2018, China (Pudong) Intellectual Property Protection Center has assisted Pudong Intellectual Property Administration with enforcements of 13 patent and trademark, participated in special enforcement actions of 2 patent and trademark, and cooperated with Pudong Intellectual Property Administration to complete the trademark, patent or copyright (either two of them) inspection of 120 market entities. People's Mediation Committee on Intellectual Property Disputes in Pudong New Area has been set up, which accepted 168 cases in the first half year and settled 119 cases successfully except those still under mediation. Meanwhile, Shanghai Intellectual Property Court set up Office of Judge Ding Wenlian and Pudong Procuratorate set up Office of Prosecutor Wu Juping at China (Pudong) Intellectual Property Protection Center to provide guidance for quickright defense. On April 17, Shanghai Intellectual Property Court made the first circuit hearing of intellectual property cases at China (Pudong) Intellectual Property Protection Center and invited representatives from all sectors of society to witness the hearing. An appeal case of dispute over trademark infringement was heard in public, by which the presiding judge promoted publicity and education on law. Zhang Jun said that in the past year or so, China (Pudong) Intellectual Property Protection Center had received extensive attention from the international community and enterprises. Recently, Mr. Andrew Michael Ong, Director-General of WIPO Asia-Pacific, Mr. Ronald John Marchant, former Director-General of UK Intellectual Property Office (UKIPO) and Ms. Liew Woon Yin, former Director-General of the Intellectual Property Office of Singapore (IPOS) inspected China (Pudong) Intellectual Property Protection Center successively and gave high praises; intellectual property administrations in Beijing, Zhejiang, Jiangsu, Shandong, Anhui and Guangdong, etc. studied and investigated at China (Pudong) Intellectual Property Protection Center successively; and enterprises in Pudong also paid high attention to the operation of China (Pudong) Intellectual Property Protection Center. Up to now, China (Pudong) Intellectual Property Protection Center has received more than 800 enterprises that came to consult and proceed with services. In the future, it will strive to build a whole chain service platform with the functions of quickexamination, right verification, right protection and efficient operation, etc, so as to make positive contributions to the optimization of business environment and innovation environment. Buildinga Silicon Valley ofbeauty &health industry and helpinglocal cosmetics brandsgo global At the Oriental Beauty Valley known as the “Capital of Cosmetics Industry” in Fengxian District of Shanghai, the reporter learned that Fengxian District has always deemed intellectual property a major driving forcefor rapid progress through “corner overtaking”, adhered to the working idea of “One-District-One-Industry & One Particularly Advantageous Industry” and promotion mechanism of “municipal and district interconnected development & district development as priority”, and focused on the development of beauty and cosmetics industry, biomedicine industry and its extended industries.Based in Shanghai, it aims to serve the whole country and integrate into the international community. The reporter also visited and interviewed Jala Groupwith the largest number of trademarks in Fengxian District. Jala Group, located in the Oriental Beauty Valley, stands out among the local cosmetics enterprises. It owns famous cosmetics brands such as Maysu and Chcedo, and boasts the largest number of registered trademarks in Shanghai. Since its founding in 2001, Jala Group has been putting significant efforts into product R&D, strengthening its core technology and being devoted to the R&D of high quality products, bent on developing cosmetics products tailor-made for the Orientals. At the 1st Exposition for Chinese Domestic-owned Brands, Jala Group was the only cosmetics company in “Made in Shanghai” section. It's learned that the Shanghai Municipal Government has approved Some Opinions on Promoting the Development of Shanghai's Beauty & Health Industry, which is greatly instrumental in building Oriental Beauty Valley into China's and even Asia's largest distinct industrial cluster of the beauty industry with the largest number of independent intellectual property rights in. “Not a single cosmetics brand of China has made it to the global top 10,”said Gu Yi, Deputy Mayor of Fengxian District, in an interview with Xiaokang reporter, “We have a complete industrial chain and high quality products.I'm confident that one day Chinese cosmetics will stand on the world stage. In October this year, the most famous global cosmetics industry event - World Cosmetics Summit will take place in Fengxian District, which provides a platform for Oriental Beauty Valley to communicate with the world's cosmetics peers and help Chinese cosmetics brands go global. Taking the initiative to defend rights to prevent “hitchhiking” and safeguarding the rights of century legend LaoFengXiang An embodiment of excellent traditional culture and craftsmanship of the Chinese nation, time-honored brands are precious treasures of the Chinese people. Setting a good example on how to enhance the market competitiveness and protect the trademark right of wellestablished enterprises, Shanghai Lao Feng Xiang Co., Ltd, one of the largest gold jewelry chain enterprises in China with 170 years' history, has always taken the brand and intellectual property protection as the key to enhance its core competitiveness and formulated a specific intellectual property strategy. Yang Yi (second person from right), Secretary of the Party Committee and Vice Chairman of Shanghai Lao Feng Xiang Co., Ltd, and Wang Ensheng (second person from left), press spokesman of Shanghai Lao Feng Xiang Co., Ltd, lectured on the company's development and intellectual property work respectively, and visited Lao Feng Xiang intangible cultural heritage base, design center, enamel company, jewelry factory and Lao Feng Xiang exhibition hall under the accompany of persons in charge of the Legal Affairs Department, Technology Center, Marketing Department and General Office.Photographer Jin Jing It's learned that Lao Feng Xiang files more than 100 patent applications every year. By the end of 2017, it already had 241 valid patents. Since 1985, the company has registered “Feng Xiang”,“Lao Feng Xiang” and other series of trademark. It started to enter the international market at the beginning of 2005, and has registered “Lao Feng Xiang” and other defensive trademarks in the Madrid system and 16 countries and regions including the United States, Canada, Australia and Hong Kong. Wang Ensheng, Chief Spokesman of Lao Feng Xiang, said that time-honored brandsaregold-lettered signboardsinherited by enterprises from forerunners. As a state-owned enterprise, it has always attached great importance to patent application and protection. Lao Feng Xiang files more than 100 patent applications each year, and it has successfully translated the brand influence into real market value. In the past ten years, the total annual profits of Lao Feng Xiang achieved double-digit growth in a row. In the future, the company will be more committed to enhancing the core competitiveness of the brand and to shaping the image as an international brand. It will make more efforts to expand the coverage of “Shanghai Service”, highlight “Made in Shanghai” and demonstrate “Shanghai Culture”, so as to tell the whole world the stories of Chinese brands through more Shanghai brandswith international competitiveness.
