"A batch of cases involving infringement of intellectual property rights of private enterprises will be investigated and prosecuted; door-to-door services will be provided, implementing a first-contact responsibility system, with at least one door-to-door service activity for private enterprises every month, providing rapid response, rapid processing, and rapid feedback intellectual property rights protection assistance services; platforms for bank-enterprise cooperation will be established through project promotion meetings, bank-enterprise matchmaking meetings, etc., to facilitate financing channels..." On December 7, the State Intellectual Property Office issued the "Notice on Several Measures for Intellectual Property Services to Support the Innovative Development of Private Enterprises" (hereinafter referred to as the "Notice"). The 10 specific and targeted policy measures directly address the difficulties and pain points faced by private enterprises regarding intellectual property rights, providing strong support for their quality improvement, efficiency enhancement, and innovative development.
Statistical data shows that by the end of 2017, the number of private enterprises in my country exceeded 27 million. Private enterprises are responsible for 65% of domestic patents, over 75% of technological innovations, and over 80% of new product development. Private enterprises are a crucial force in my country's technological innovation and a vital source of intellectual property creation and utilization. In recent years, my country's intellectual property work has focused on leveraging the fundamental role of intellectual property in safeguarding innovation-driven development, activating the innovation and creativity of private enterprises. In the context of a global economic downturn and my country's transformation of its development model, optimization of its economic structure, and shift in growth drivers, these measures aim to help private enterprises overcome the "iceberg of the market, the mountain of financing, and the volcano of transformation."
Strengthening Protection, Improving Quality and Efficiency
Sheng Huadong, chairman of Hangzhou Legend Environmental Technology Co., Ltd., who started his business by successfully solving toilet odor problems with his deodorization technology, recently admitted in a media interview that the company's real concern during its development was intellectual property protection. On one hand, the technology they painstakingly developed was imitated before it could even be marketed; on the other hand, during the initial startup phase, their energy and money were consumed by product development, leaving no time to address intellectual property issues. This is a common problem faced by many private enterprises. The "Notice" addresses the intellectual property challenges faced by private enterprises, especially small and medium-sized enterprises, by simultaneously strengthening protection and improving service levels.
On November 15th, the China (Ningbo) Intellectual Property Protection Center was officially inaugurated. The average processing time for invention patent applications processed through the center will be reduced from 22 months to 3-6 months, while the processing time for utility model and design patents will be shortened to 1 month and 15 days, respectively. In the fourth quarter of 2018, a number of national-level intellectual property protection centers were established, providing strong support for intellectual property protection, particularly for improving the efficiency of intellectual property protection for private enterprises.
In fact, since 2016, the State Intellectual Property Office has used the construction of intellectual property protection centers as a key initiative to accelerate the establishment of convenient, efficient, and low-cost rights protection channels, promoting "one-stop" administrative protection services for intellectual property. While providing effective protection, this has saved enterprises time and money in rights protection, and has been widely welcomed by the public, especially small and medium-sized enterprises. It has been included in the State Council's list of measures to support innovation and reform and promoted nationwide.
This "Notice" sets forth more specific requirements for intellectual property protection centers—to further increase the proportion of private enterprises in their service enterprise lists, improve the one-stop service mechanism for rapid authorization, confirmation of rights, and rights protection, and significantly enhance the efficiency of intellectual property creation and protection for private enterprises in key industries.
Expanding Financing: Injecting Vitality
Another obstacle for Sheng Huadong's startup was funding. "Small and micro enterprises can hardly get loans," Sheng Huadong said. All they had were innovation and patents accumulated over many years.
Compared to Sheng Huadong's company, private enterprises that have already obtained funds through intellectual property pledge financing have had a much smoother entrepreneurial journey. "Last year, we applied for risk compensation funds and, based on our patents related to vacuum coating machine production technology certified by Apple, obtained a 10 million yuan loan from Nanhai Rural Commercial Bank in April last year," said Yin Zhongle, general manager of Foshan Nanhai Jingdingtai Machinery Equipment Co., Ltd. He added that it was precisely with this funding that Jingdingtai was able to independently develop production equipment, reduce production costs, and gain the ability to secure large production orders.
A relevant official from the Foshan Intellectual Property Bureau explained that in Foshan, a region with a thriving private economy, technology-based enterprises often hold patents but lack the financial support to operate. Since 2016, Foshan has been operating an intellectual property pledge financing risk compensation fund, prioritizing private enterprises, especially small and medium-sized enterprises (SMEs). To date, it has successfully provided intellectual property pledge loan support to 123 technology-based enterprises in Foshan.
In Qingdao, successful cases of patent pledge insurance loans helping enterprises solve the problems of "difficult and expensive loans" are also widespread. Qingdao Haifele Pneumatic Valve Co., Ltd. (hereinafter referred to as Haifele), a technology-based enterprise specializing in the production of professional fluid pneumatic valves, had received a large number of orders from foreign manufacturers due to its excellent product quality and urgently needed funds to expand its production capacity. However, due to its asset-light operation and lack of collateral, it was difficult to obtain bank loans. When facing difficulties, Haifele learned about Qingdao's patent pledge insurance loan business and quickly obtained a loan of 1 million yuan by pledging its 10 patents.
In recent years, the State Intellectual Property Office has continuously broadened the channels for realizing the value of intellectual property rights, vigorously developed new models of patent pledge financing, and promoted the universalization, normalization, and large-scale development of intellectual property pledge financing services. It has also guided various regions to actively explore patent pledge financing paths adapted to the characteristics of technology-based small and medium-sized enterprises (SMEs). From 2008 to 2017, the national patent pledge financing amounted to nearly 300 billion yuan, alleviating the financing difficulties of a number of SMEs and effectively supporting their innovation-driven development through intellectual property.
"Expanding the coverage of intellectual property pledge financing for private enterprises" is a specific requirement for intellectual property pledge financing work in the aforementioned measures, aiming to allow more private enterprises to enjoy the "dividends" brought by intellectual property. More specifically, the "Notice" also requires a thorough understanding of the intellectual property financing needs of private enterprises, establishing platforms for bank-enterprise matchmaking through project promotion meetings and bank-enterprise matchmaking meetings to facilitate financing channels. By the end of 2018, each province (autonomous region, municipality) and sub-provincial city should hold at least one intellectual property pledge financing matchmaking event.
"We must adhere to a problem-oriented approach, focusing on the practical difficulties and problems encountered by private enterprises in intellectual property matters, implementing precise policies, promoting efficient progress, and striving for tangible results," said a relevant official from the State Intellectual Property Office. (Intellectual Property News, Reporter Yang Liu)