In September, WIPO released the Global Innovation Index 2024, highlighting Switzerland, Sweden, the United States, Singapore, and the United Kingdom as the world’s most innovative economies. Notably, China is recognized as one of the fastest climbers over the last 10 years, alongside Türkiye, India, Vietnam, and the Philippines^[1].

China has set its goal of becoming a technology exporter and an intellectual property powerhouse by 2035, as outlined in its national strategy released in 2021^[2].  This strategy aims to empower China's innovation-driven growth and solidify its position as a global intellectual property leader.  Patents are a crucial indicator of innovation activities, especially for high-tech companies.

Three Chinese companies, including Huawei Technologies (maintaining its first-place ranking), BOE Technology, and Contemporary Amperex Technology Limited (CATL), stand out prominently among the top 10 filers for PCT applications in 2023.  In addition, China experienced a remarkable surge in patent filings in the same year, with a total of 921,000 invention patents granted, reflecting an annual growth of 15.4%.

The chart below illustrates the top ten patent-receiving offices, with China accounting for 46.8% of the patent filings worldwide^[3] (excluding design applications).

Patents play a crucial role in protecting innovations, granting inventors exclusive rights to use and commercialize their patented technologies. This prevents others from making, using, or selling products and services associated with the patent without permission. For instance, Huawei has successfully leveraged its strong patent portfolio to dominate markets for its key technologies and fend off competitors.

Despite the rapid growth in patent filings, Chinese patents are granted swiftly. According to the CNIPA (China National Intellectual Property Administration) annual report 2024, the average duration for reviewing an invention patent was reduced from 16.5 months to 16 months last year. China continues to enhance the efficiency of its patent application examination process, aiming to reduce the examination time to 15.5 months this year.

The chart below, showing the average patent pendency in major jurisdictions, further demonstrates the “China speed” in the niche aspect of examining patents. Several factors contribute to this efficiency, including recent reforms, the adoption of advanced technologies, and increased examiner training. These improvements not only expedite the patent granting process but also ensure high examination accuracy, which reached 94.2% last year.

We’ve observed and summarized a few factors that may contribute to the shortened examination duration of patents in China:

• KPI driven: According to the comments of former CNIPA examiners, specific requirements are set for CNIPA examiners on a specified shortened examination duration. The implementation of the management within CNIPA ensures that examiners are motivated to complete reviews within a set timeframe.

• Expanded workforce: To handle the large volume of applications, CNIPA has significantly expanded its workforce by hiring more patent examiners. Since 2017, CNIPA has set up seven examination offices in multiple cities, and the number of Chinese patent examiners has grown to over 16,000 ^[3] by the end of 2023. This expansion has helped reduce the backlog and speed up the examination process.

• Advanced technologies: CNIPA has invested in advanced technologies, such as artificial intelligence (AI) and big data, to enhance the efficiency of prior art searches for patent examinations, which was previously very time-consuming.

These factors collectively enhance the efficiency of China’s patent examination process, making it one of the fastest in the world and positions China as a favorable destination for innovators seeking patent protection and making it more attractive for collaborative innovations and business operations. For foreign companies, this means a more streamlined and reliable process for securing patents in China, which can facilitate smoother market entry and stronger protection for their intellectual property.

By prioritizing innovation and robust IP protection, China is not only supporting its domestic businesses but also creating a more welcoming environment for international companies. This balanced approach can help China continue to thrive as a global leader in innovation, fostering a collaborative and dynamic ecosystem that benefits all stakeholders.

References

[1] https://www.wipo.int/pressroom/zh/articles/2024/article_0013.html

[2] lushenglawyers.com.cn/cn/奖项与新闻/从知识产权从业者视角看-知识产权强国建设纲要-2021-2035年/

[3] https://www.wipo.int/en/ipfactsandfigures/patents

[4] https://english.cnipa.gov.cn/art/2024/6/13/art_3090_193032.html

Author

Li Mi

Head of Patents, Lusheng Law Firm