Huawei ZTE triggers patent hotspot but hidden hidden dangers

Huawei filed an intellectual property lawsuit against Samsung in the United States and China, demanding that Samsung compensate Huawei for its intellectual property infringement, which has become the focus of recent discussions. The Huawei v. Samsung incident shows that some Chinese patents have also been violated in other markets, which means that China is gradually becoming a big intellectual property country, but when it is happy to arrive at this turning point, some experts believe that China is in the patent. There are still some flaws and controversies in the quality and structure distribution. For example, Lu Guoqiang, director of the Shanghai Intellectual Property Office, said that China has now become a big country in terms of the amount of intellectual property. Whether it is a patent or a trademark, we have been the world's number one in the world for 14 consecutive years. However, in some core technologies of patents, there is still a big gap with developed countries. In 2015, China's PCT (Patent Cooperation Agreement) international patent application was 29,000, compared with 54,000 in the United States and 43,000 in Japan. Of the 29,000 international patents, nearly 6,000 were created by Huawei and ZTE. Lu Guoqiang made the above statement at the high-end roundtable “Shanghai Forum 2016” on May 28th, “Multidimensional Perspective: Intellectual Property and Innovation”.

Huawei ZTE triggers patent hotspots but hidden hidden dangers

In this forum, government officials, experts, scholars and companies from the United States and China discussed China's current intellectual property development and its problems. The meeting was led by CFO First Consultant, former FT Chinese Network Editor-in-Chief, and Fudan University. The professor of the School of Journalism, Zhang Li, was presided over. Huawei v. Samsung is a smart move.

Intellectual property rights are a strategic resource for national development and a core element of international competitiveness. China's economic development has entered a new normal, and the trend of innovation leading development is more obvious. The basic guarantee role of intellectual property system to stimulate innovation is more prominent. The state has made a series of strategic deployments around the development of intellectual property. The "13th Five-Year Plan" proposal clearly stated that it is necessary to "deepen the reform of the intellectual property field and strengthen the protection of intellectual property rights."

At the end of last year, the State Council promulgated the "Several Opinions on Accelerating the Construction of Intellectual Property Power in the New Situation" and proposed to build a strong intellectual property country with Chinese characteristics and world level. Locally, in July 2012, Shanghai released the “Shanghai Intellectual Property Strategy Outline (2011-2020)”, aiming to build a regional intellectual property center in Asia Pacific (5.980, -0.05, -0.83%). Lu Guoqiang said that the construction of the science and technology center in Shanghai is now focused on this goal in terms of intellectual property work. In this context, China's intellectual property has developed rapidly. According to data provided by the World Intellectual Property Organization, the total number of registrations and registrations and applications for intellectual property rights in China reached the highest in the world in 2014 and 2015, surpassing the United States and Japan.

Taking the main indicators of intellectual property during the “Twelfth Five-Year Plan” period in Shanghai as an example, as of the end of 2015, the number of invention patent applications in Shanghai reached 194,547, an increase of 108.6% over five years ago; the number of PCT international patent applications reached 4,855, an increase. 114.9%. In the case of intellectual property disputes, there were generally more foreign companies reporting to China. This time Huawei sued Samsung, in a sense, it also reflected the growth rate of China's intellectual property. Lu Guoqiang said that from the situation in recent years, this situation has indeed changed, which is related to China's implementation of the innovation-driven strategy. Huawei is an outstanding representative of Chinese companies in terms of innovation. Huawei's PCT filings have been the first in the world in recent years.

In the future, more and more Chinese companies will go out. With the implementation of China's innovation-driven strategy, there will be more and more litigations of such international Chinese companies and foreign companies. In the above forum, David J. Kappos, former US Deputy Secretary of Commerce and partner of Cravath, Swaine & Moore, said that this is indeed a turning point. We have entered a new era. Huawei is among the few Chinese companies. Innovate a company that invests heavily in investment, and they want to get a return on investment. This litigation action taken by Huawei is defending its intellectual property interests. This is a very smart move, and this is extremely important for the protection of "innovation." At the same time, David J. Kappos suggested that China should avoid entering such a trap and follow the United States. That is to say, China should not follow all the US standards-setting processes.

Patented quantity and light quality

Although the number of patent applications in China has reached the top in the world, the quality of patent applications in China is still unsatisfactory. Lu Guoqiang said that Chinese companies still have a big gap with developed countries in some core technologies of patents. Enterprises such as Huawei and ZTE, which are willing to invest heavily in research and development, are still rare in China. Lu Guoqiang said that China still has a long way to go in terms of the quality of patents. In the future, national policies, including local governments, should pay more attention to encouraging Chinese companies to have more intellectual property rights when formulating policies. Input.

David J. Kappos said that China's trademark infringements have exploded in the past few years, especially trademark cybersquatting, which is very frequent. Many foreign companies wishing to do business in China have found that their trademarks have been squatted by many local companies, especially malicious cybersquatters. Therefore, it is very important to establish a more market-oriented trademark system and encourage innovation. It can give more local trademarks in China a unique protection status, and also enable more foreign companies to gain confidence and attract more. Mostly from foreign investment. China should adopt a "zero tolerance" attitude toward "trademark squatting." David J. Kappos believes that China should have no problem with the issue of the “quantity” of patent applications. It should be a good time for China to shift its focus from quantity to quality.

Participants believe that government departments have some inappropriate incentives for intellectual property rights, which may be one reason why China's current patent quality cannot be improved quickly. For example, many local governments now directly link the number of patent registration applications with innovation. The number of patent applications is almost equivalent to a very important factor in the innovation indicators of the region. Even enterprises have been motivated by many local governments in patent applications. Incentives included in capital. Therefore, many companies originally only wanted to apply for a patent, but since the government subsidized, these companies split a patent into four or five.

Lu Guoqiang said that policies will vary in terms of encouraging innovation and encouraging the creation of intellectual property. In some less developed regions, the amount of intellectual property is relatively low, and the government may adopt some policies to encourage local enterprises to apply for patents and trademarks. In this regard, the Shanghai government did not use the number of patent applications as an indicator. In terms of policy orientation, the first is to encourage enterprises to apply for more invention patents, because invention patents have high gold content; second, to encourage the transformation of invention patents, the government can Some aspects give support. Zhang Ping, a professor at Peking University Law School, also said that China’s history of intellectual property rights is very short. Most Chinese companies buy patents with a mindset. They want to get discounts from the government and get tax exemption to enter the park. China has a patent market, but a very virtual market, this completely deviates from the essence of patent management.

Patent conversion ability is not high

According to Antonio Varas, a consulting partner in Boston, China is actually a big resource for R&D. In terms of R&D, China has invested 350 billion yuan, but in research and development, it is necessary to pay attention to whether these technologies can really have an impact on a global scale. . In terms of patent applications, we should not only limit our eyes to China, but also need to maintain a very active position in overseas markets. Huawei is a very good example. If you can participate in international standards development, then your positioning will be better.

Zhang Ping said that China's scientific research level is not so bad, we even lead the international in some areas, but our ability to turn the advanced nature of technology into a monopoly of technology is not enough. Even if some scientists in China have developed very good results, they often feel that they are wasting time and not applying for patents. In the end, these patents have been applied by other countries. Anyone with a monopolistic desire wants to apply for a patent, and the university teacher has no desire for monopoly. Unless he cooperates with the company, the American university is very close to the cooperation with the enterprise.

Sun Wei, chief legal officer of Xiaomi Technology Co., Ltd., said that in some American universities, NGOs (non-governmental organizations) will be established to manage and promote technology conversion business for colleges and universities, which has achieved good results. Some participants also mentioned that the current intellectual property protection system is not fully guaranteed to protect your intellectual property rights. Zheng Lirong, professor and dean of the School of Information Science and Engineering at Fudan University, said that the technology that a company has worked hard to develop, once other companies have dug away the core technical personnel of this enterprise, your patent will be taken away.

In this regard, Zhou Wei, director of R&D of Zero Intelligence (Beijing) Intelligent Technology Co., Ltd. (hereinafter referred to as “Zero Intelligent Control”), said that this requires the company to ensure the stability of the talents and the enthusiasm of the work at all levels. One of the most popular practices, including the Xiaomi company, is the partnership approach. To a large extent, they are an opportunity for most of the company's core employees to “share the company's interests”. At the conference, Zhou Wei demonstrated at the conference that their company's newly released weight is only 200 grams of "pocket drone" DOBBY. The drone has applied for more than 20 applications. patent.

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