28 October 2020


The 22nd session of the Standing Committee of the 13th National People’s Congress (NPC) completed the revision of the Patent Law on Monday, marking the fourth amendment to the Patent Law in China since its inception.

China has continued to strengthen the protection of intellectual property rights, but the effect of patent protection still falls short of the expectation of the patentee. The Fourth Amendment correlates China’s patent laws to match international patent standards in a move to further bolster IP rules and regulations and to promote international business to operate in China.

Patent Infringers Face Heavier Penalties

The latest revision of China’s patent law introduces considerable controls to prevent patent infringement. Patent infringers can now face up to five times of original damages as punitive damages for deliberate patent infringement. Accordingly, statutory damages will be increased from one million RMB to five million, this sharp increase gives our technology further value for patent litigation practice in China.

Bolstering IP Protection & Utilization

The new amendment extends the length of design patents in China from 10 to 15 years, which will qualify China to join the Hague Agreement, allowing industrial designs to be protected in multiple countries or regions with minimal formalities.

The amendment further reduces burden of proof for the indebted, while improving the relevant administrative protection systems by adding the principle of good faith to further enhance the effect and efficiency of patent protection.

Another valuable change under the China Patent Law is the introduction of the open license system. With the implementation of the China Patent Law, the patentee will be able to acknowledge and record their intention to declare an open license for their patents to any entity or individual within the China Patent Office, and consequently set license fees and terms for public records.

Henry Wang (President, IPwe China) commented on China’s new open license system, commenting on the growing value of having access to “a world-wide patent marketplace,” stating:  “With over 20 years of continued investment into exponential technologies, together with the worldwide and very closely connected patent broker network that IPwe has built, IPwe can save clients 20% of traditional transaction costs and the turnaround is 4-5 times faster.”

IPwe and China’s Evolving IP Ecosystem

Henry Wang commented on the new amendment, stating: “The long-awaited fourth revision of the China Patent Law highlights two important aspects of patents in the current environment of China – patent protection and patent utilization. These will greatly benefit and facilitate the further business growth of IPwe…

…the introduction of punitive damages provides strong deterrent for willful or persistent patent infringers. Our robust analytics engines will be more valuable than ever for organizations in China in terms of portfolio review, patent landscape evaluation, and patent risk analysis.”

IPwe’s IP patent technologies have already created an unparalleled opportunity to fuel innovation and support patent litigation in China, and the new China Patent Law has only made this process simpler and faster. All of this, coupled with IPwe’s patent insurance and patent financing products, helps to proper our development and reach in China’s World of Patents.

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Mia Mixan
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